The United States has announced a reward of up to $5 million for information leading to the capture of Ruja Ignatova, also known as the “cryptoqueen.” Ignatova is wanted by both the United States and Germany for her involvement in one of the largest global fraud schemes in history, which caused losses exceeding $4 billion. This announcement was made by US ambassador to Bulgaria, Kenneth Merten.
Ambassador Merten mentioned that the US would provide details later on Wednesday about how individuals can anonymously submit tips to aid in the ongoing investigation.
Who Is Ruja Ignatova?
Ruja Ignatova, 44, is a German citizen of Bulgarian origin. Along with her friend Sebastian Karl Greenwood, she initially launched a bitcoin ripoff named ‘BigCoin.’ They later introduced another fraudulent cryptocurrency called ‘OneCoin’ in Sofia in 2014, which amassed billions of dollars from investors worldwide. Between 2014 and 2017, Ignatova allegedly defrauded investors of an estimated $4 billion.
Ignatova managed to evade arrest by fleeing from Sofia to Athens just two weeks after her indictment in October 2017. Her current whereabouts are unknown, but it is believed she bugged her American boyfriend’s apartment, suspecting him of cooperating with the FBI. In 2022, she was added to the FBI’s list of the 10 most wanted fugitives on charges of forgery and money laundering. Some reports suggest she underwent plastic surgery and frequently changes her appearance.
Greenwood was arrested in Thailand in 2018 and later extradited to the US, where he was sentenced to 20 years in prison and ordered to repay $300 million to the investors. Ignatova’s brother, Konstantin Ignatov, was arrested at Los Angeles International Airport in March 2019. He pleaded guilty to wire fraud in a deal with US authorities and was sentenced to 34 months in jail, being released in March 2024.
A recent BBC investigation speculates that a top mafia figure in Bulgaria, Hristoforos Nikos Amanatidis, also known as Taki, who has an El Chapo-like image in Bulgaria, might have murdered her.
How Ignatova Defrauded Investors
Ignatova and her associates exploited a global network to market the fake cryptocurrency to friends and family, promising high returns in exchange for their own payouts. Millions of investors poured in substantial amounts before realizing that OneCoin wasn’t a real cryptocurrency and lacked any secure, independent blockchain technology like other legitimate cryptocurrencies.
The FBI stated that when OneCoin users logged in to check their wallets, they saw random numbers on a screen. The US government has labeled OneCoin as one of the “biggest fraud schemes” in global history. OneCoin’s prices were always rigged, steadily increasing from €0.5 in January 2015 to €29.95 in January 2019, unlike other cryptocurrencies that experience fluctuations.
Additionally, OneCoin never traded on a public exchange. Ignatova had created a private exchange, Xcoinx.com, which was designed to prevent quick exits. If someone owned 1,000 OneCoins, they could only sell a maximum of 15 (1.5%) per day, with no guarantee that the sell order would be executed. Starting January 2017, Xcoinx was perpetually ‘under maintenance,’ making selling impossible.
Charges In Absentia
Bulgaria has announced plans to prosecute Ignatova in absentia, as stated by chief prosecutor Borislav Sarafov on Wednesday. This allows proceedings to confiscate her property worth over 10 million euros.
