U.S. Department of Justice Allocates $40 Million for OneCoin Fraud Victims
OneCoin victims get a $40 million lifeline more than a decade after the scam began
Coindesk
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Victims of the OneCoin scam, which defrauded approximately 3.4 million investors globally, can now apply for compensation from a newly established $40 million fund of seized assets by the U.S. Department of Justice. This initiative follows the sentencing of key figures involved in the $4 billion fraud scheme.
- 01Victims can apply for compensation from a $40 million fund.
- 02OneCoin defrauded up to 3.4 million investors globally.
- 03The scheme was co-founded by Ruja Ignatova and Karl Sebastian Greenwood.
- 04The DOJ continues to seize criminal proceeds to benefit victims.
- 05OneCoin is considered one of the largest global fraud schemes in history.
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The U.S. Department of Justice (DOJ) has announced a $40 million compensation fund for victims of the OneCoin fraud scheme, which is estimated to have defrauded approximately 3.4 million investors worldwide out of $4 billion. OneCoin, co-founded by fugitive Ruja Ignatova and Karl Sebastian Greenwood, operated from 2014 to 2019, promoting a non-existent cryptocurrency through a multi-level marketing network. The fraudulent operation, based in Sofia, Bulgaria, misled investors into believing they were purchasing tokens tied to a legitimate cryptocurrency. The scheme collapsed in 2017, leading to significant legal actions against its founders. Following the sentencing of key figures involved, the DOJ is committed to recovering criminal proceeds to aid victims. This announcement comes shortly after the FTX Recovery Trust revealed plans to distribute $2.2 billion to creditors from its own fraud case, highlighting ongoing efforts to address losses in the cryptocurrency market.
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The compensation fund provides a crucial lifeline for victims who lost their investments, allowing them to recover some of their financial losses.
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