Guernsey Takes $11.4M from OneCoin Scam as Cryptoqueen’s Reign Falls Apart

Guernsey has successfully recovered over £8.5 million, or approximately $11.4 million, linked to the OneCoin fraud, marking one of the most significant financial recoveries thus far in connection with the case of the fugitive founder Ruja Ignatova, often referred to as the “Cryptoqueen.”

This ruling strengthens international initiatives aimed at dismantling what remains of OneCoin’s financial legacy, despite the fact that its orchestrator has been missing for more than eight years.

As reported by the Guernsey Press, the Royal Court of Guernsey approved a foreign forfeiture order requested by German prosecutors from Bielefeld.

The court determined that the funds held in Guernsey by Aquitaine Group Limited in an account at RBS International, totaling £8.59 million along with accrued interest, were under Ignatova’s control and should be confiscated.

The recovered funds are now part of Guernsey’s Seized Asset Fund, where they are intended primarily for compensating victims and supporting law enforcement efforts.

How OneCoin’s Fraudulent Crypto Scheme Resulted in £8.8M of Confiscated Assets

Ignatova, a Bulgarian-born German national, founded OneCoin in 2014 and promoted it globally as a revolutionary cryptocurrency that would outshine Bitcoin.

However, prosecutors later established that OneCoin lacked an operational blockchain or a viable mining process, instead functioning as a multi-level marketing scheme where returns were financed by new investors’ deposits.

According to a statement from the U.S. Attorney’s Office for the Southern District of New York, OneCoin’s legal head has admitted guilt to charges of money laundering and wire fraud.#CryptoNewshttps://t.co/zKdVwzCWse

— Cryptonews.com (@cryptonews) November 9, 2023

The FBI estimates that investors globally suffered losses exceeding $4 billion, with some evaluations suggesting total losses might be even higher.

The Royal Court indicated that Ignatova was granted 28 days in November to contest the confiscation request.

No response was received since Ignatova has not been seen in public since October 2017, when she disappeared just days after a sealed arrest warrant was issued in the United States.

She became the first female ever to be included on the FBI’s Ten Most Wanted Fugitives list, with U.S. authorities offering a reward of up to $5 million for information leading to her capture.

The U.S. Department of State announced a new incentive, offering a $5 million reward for information that leads to the arrest of OneCoin founder Ruja Ignatova.#onecoin #reward #ignatovahttps://t.co/XWdRn6yYhs

— Cryptonews.com (@cryptonews) June 26, 2024

German prosecutors, in collaboration with Guernsey authorities, have been working to reclaim proceeds from the sale of two London apartments formerly owned by Ignatova through companies registered in Guernsey.

The properties, which include a penthouse and a smaller apartment, were subjected to a Royal Court restraint order in November 2021 and were later sold for over £11 million.

After deducting fees and taxes, approximately £8.8 million remained as of May 2024, constituting the majority of the seized amount.

OneCoin’s Inner Circle Faces Justice as Ignatova’s Disappearance Continues

This recent development is part of a larger trend of asset recovery and legal repercussions that have persisted years after OneCoin’s downfall.

Numerous associates of Ignatova have been convicted and sentenced.

In 2023, co-founder Sebastian Greenwood received a 20-year prison sentence.

OneCoin Crypto Scam: A German Court Sentences Fraudsters to Prison
Founders of the notorious OneCoin cryptocurrency scam have been sentenced to multiple years in prison by a German court.#CryptoNews #newshttps://t.co/JZj5HWattJ

— Cryptonews.com (@cryptonews) January 10, 2024

Other individuals, including high-ranking legal and financial facilitators, have also been incarcerated.

Meanwhile, uncertainties regarding Ignatova’s fate remain unresolved.

Investigative journalism, including BBC investigations in 2023 and 2024, has suggested possible connections between Ignatova and Bulgarian organized crime figures.

This includes Hristoforos Nikos Amanatidis, known as “Taki,” who allegedly provided security during her escape.

There have been hints that she may have been murdered in 2018, possibly on a yacht in the Ionian Sea, but law enforcement has stressed that no definitive evidence has been found.

This has led international agencies to continue treating her as a fugitive who might still be alive.

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