Victims of the OneCoin cryptocurrency fraud scheme will receive more than GBP£8.5 million in recovered funds after authorities in Guernsey secured the seizure of assets linked to the scam’s alleged mastermind, fugitive businesswoman Ruja Ignatova.
Guernsey’s Economic and Financial Crime Bureau announced that GBP£8.59 million will return to Germany for victim compensation efforts. The funds belonged to Ignatova, widely known as the “Missing Cryptoqueen,” who remains wanted by the FBI for allegedly orchestrating the OneCoin fraud.
Authorities allege OneCoin defrauded investors worldwide of roughly USD$4.5 billion. Ignatova, 45, disappeared in 2017 after U.S. officials issued an arrest warrant.
In January, Guernsey’s Royal Court ruled that money held in an account at RBS International, a subsidiary of NatWest Group plc (LON: NWG), should be confiscated. Subsequently, officials finalized arrangements to transfer the funds to German authorities overseeing victim recovery efforts.
The bureau said its Financial Intelligence Unit began developing intelligence on Ignatova in January 2017. Investigators then worked for years with domestic and international partners to trace the movement of funds.
Officials conducted detailed financial analysis to follow complex transactions. Additionally, investigators uncovered methods used to conceal the proceeds of alleged criminal activity.
Their work revealed that funds linked to the scheme purchased two luxury properties in London’s Kensington district. Furthermore, investigators found that Guernsey-registered trusts held the properties.
Authorities said those trust structures concealed Ignatova’s connection to the assets. Consequently, investigators faced additional challenges when attempting to link the money to the alleged fraud.
German authorities later sought to recover the funds on behalf of victims. Meanwhile, Guernsey law officers cooperated with their counterparts as joint inquiries progressed after 2021.
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OneCoin did not operate on its own native blockchain
Neil Allen, head of the Financial Intelligence Unit, said strong financial intelligence played a critical role in protecting the international financial system. He added that long-term cooperation between agencies helped expose hidden ownership structures and return criminal proceeds to victims.
Jayne Limond, deputy director of asset recovery at the bureau, said the outcome demonstrated Guernsey’s commitment to tackling financial crime regardless of where it originates. She also said the case showed the strength of the island’s legal framework and its willingness to support international justice efforts.
OneCoin launched in 2014 and marketed itself as a revolutionary digital currency that could rival established cryptocurrencies. The company expanded rapidly through a multi-level marketing structure that rewarded members for recruiting new participants and purchasing educational packages tied to the platform.
Unlike legitimate cryptocurrencies such as Bitcoin, OneCoin did not operate on a publicly verifiable blockchain. Consequently, independent experts could not confirm the existence of the coins being sold to investors. Critics and regulators raised concerns for years about the company’s business model and its lack of transparency.
Authorities in multiple countries eventually concluded that OneCoin functioned as a pyramid scheme rather than a genuine cryptocurrency project. Furthermore, several senior figures connected to the operation faced criminal investigations and prosecutions as regulators intensified scrutiny of the company.
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