Guernsey Island seizes $11.4 million in assets from OneCoin scam, accounting for only 0.2% of the loss

The Guernsey authorities, pursuant to the Proceeds of Crime Law, approved the confiscation of $11.4 million in assets related to the OneCoin fraud case at the request of the German Bielefeld authorities. The funds are held in an RBS International bank account in Guernsey. Although the amount appears substantial, it only accounts for 0.2% of the total losses from OneCoin, reflecting the significant challenges in recovering assets in cryptocurrency fraud cases.

Key Details of the Confiscation Action

Basic Information

• Confiscated Amount: $11.4 million (£9 million)
• Confiscation Location: Guernsey (British Crown Dependency)
• Funds Held By: RBS International Bank
• Legal Basis: Guernsey Proceeds of Crime Law
• Requesting Country: Germany (Bielefeld authorities)
• Date: January 21, 2026

Background of the OneCoin Case

OneCoin is one of the largest cryptocurrency scams in history. The project claimed to be the “Bitcoin killer” and lured millions of investors worldwide through multi-level marketing, resulting in losses amounting to billions of dollars. The founder, Ruja Ignatova, was dubbed the “Crypto Queen” before her disappearance in 2017. The case has garnered widespread attention.

The Difficulties in Asset Recovery

The Reality Behind 0.2%

Although the confiscated amount reached $11.4 million, it only represents 0.2% of the total losses from OneCoin. This figure profoundly highlights the core difficulties in recovering assets in cryptocurrency fraud cases:

• Complex Fund Flows: Scam funds often pass through multiple jurisdictions, involving various banks and exchanges across countries
• Cross-Border Enforcement Challenges: Coordination among multiple national authorities is required, with cumbersome and time-consuming procedures
• Sophisticated Concealment Techniques: Criminals use complex transfer routes and mixing services to hide funds
• High Time Costs: Freezing accounts to final confiscation can take several years

The Significance of International Law Enforcement Cooperation

Although the amount recovered is small relative to the total loss, this action demonstrates the coordinated efforts of international law enforcement agencies in pursuing fraud assets. The German authorities submitted an application to Guernsey, which approved the confiscation under local law. This cross-border cooperation mechanism offers valuable reference for future fraud asset recovery efforts.

Implications for the Cryptocurrency Ecosystem

This case conveys several important signals:

First, asset recovery is difficult but not impossible. Even years after the incident, authorities continue to pursue related assets, providing ongoing justice for victims.

Second, the anonymity and cross-border nature of cryptocurrencies, while enabling innovative applications, also facilitate fraud. OneCoin was not a genuine blockchain project but a traditional scam disguised with cryptocurrency elements, reflecting early industry regulatory gaps.

Third, the importance of international law enforcement cooperation is increasingly evident. Single countries have limited capacity; establishing more comprehensive cross-border asset recovery mechanisms is essential.

Summary

Although the Guernsey confiscation recovered only 0.2% of the total OneCoin losses, its significance lies not just in the amount but in demonstrating the persistent efforts of international law enforcement in pursuing fraud assets. This case reminds investors that risks of fraud in the cryptocurrency space still exist, and even the largest scams can be pursued for years. For the cryptocurrency industry, this serves as both a warning and a partial realization of justice for victims.