Victims of the notorious Ponzi scheme OneCoin in the United States are set to receive compensation, with the US Department of Justice announcing the availability of $40 million for those who lost money between 2014 and 2019. This initiative represents a significant development for individuals who previously had little hope of recovering their investments.
The scheme, which amassed approximately $4 billion, involved complex token packages that promised returns through a centralized system. Despite its promotion as a cryptocurrency, OneCoin was not decentralized and operated under a model that restricted trading to a closed network. Its founders, Ruja Ignatova and Karl Sebastian Greenwood, launched the project in 2014, quickly expanding its reach into various countries, including Bulgaria, Dubai, and Belize.
Legal actions against OneCoin have been fraught with challenges; a class action suit attempted in the UK in 2024 failed due to funding issues. With many of its promoters facing imprisonment or worse, the legacy of OneCoin continues to loom over the crypto landscape, highlighting the risks associated with early cryptocurrency investments.