The U.S. Department of Justice has announced the commencement of a remission process to compensate victims of the global OneCoin cryptocurrency fraud scheme, which defrauded investors of more than $4 billion.

The scheme, which operated between 2014 and 2019, was orchestrated by Ruja Ignatova and Karl Sebastian Greenwood, co-founders of OneCoin, alongside other accomplices.

The group, through OneCoin, marketed a fake cryptocurrency via a global multi-level marketing network, deceiving millions of investors worldwide.

According to the DOJ’s statement on Monday, more than $40 million in forfeited assets is currently available for distribution to victims. It stated that eligible victims, those who purchased OneCoin between 2014 and 2019, could apply for compensation through an official petition process. 

It added that applications must be submitted by June 30 via the designated remission portal or directly to the appointed administrator, Kroll Settlement Administration LLC.

Assistant attorney general A. Tysen Duva said the initiative reflected the department’s commitment to prioritising victims and recovering proceeds of crime.

“As we did in this complex investment fraud case, the Department pursues forfeiture to take the profit out of crime and then use that money to compensate victims wherever possible.

“I commend the efforts of our colleagues in the Southern District of New York, our law enforcement partners, and our Money Laundering, Narcotics and Forfeiture Section, which manages the Asset Forfeiture Program, for all of their work on behalf of the victims in this important case,” Mr Duva said. 

U.S. attorney Jay Clayton described the scheme as a “lie disguised as cryptocurrency,” noting that the compensation effort marks a significant step toward restitution, even though full recovery remains unlikely. 

U.S. authorities said efforts were ongoing to locate Ms Ignatova, who remains a fugitive and is listed among the FBI’s most wanted.

Officials restated that victims will not be required to pay any fees to participate in the remission process and warned against potential scams by individuals posing as government representatives.