More than £8.5m from Cryptoqueen scam returned

Victims of a cryptocurrency scam run by a fugitive are set to get more than £8.5m back following an investigation.

The money was linked to Dr Ruja Ignatova, 45, known as the Missing Cryptoqueen, who is wanted by the FBI for orchestrating a $4.5bn (£3.3bn) scam called OneCoin.

Guernsey's Royal Court determined in January that £8.59m held by Ignatova, who disappeared after an arrest warrant was issued for her in the US in 2017, in an account at RBS International on the island should be seized.

The money will now be returned to Germany to help compensate people who lost out in the scam, said Guernsey's Economic and Financial Crime Bureau (EFCB), which led the investigation.

EFCB said its Financial Intelligence Unit (FIU) began developing intelligence on Ignatova in January 2017 and stayed closely involved for years, working with partners at home and overseas.

Investigators used detailed financial analysis to follow complex money trails and uncover how funds were being hidden.

The investigators' work revealed how criminal proceeds had been used to buy two luxury properties in upmarket Kensington, London, through Guernsey-registered trusts.

Authorities said those structures were deliberately set up to hide Ignatova's involvement and make it harder for investigators to link the money to fraud.

After joint inquiries began in 2021, Guernsey's law officers worked with German authorities who were seeking to recover the funds on behalf of victims.

Neil Allen, head of the FIU, said the case highlights the "essential role of high-quality financial intelligence in protecting the global financial system".

"Our long-term collaboration with international partners helped expose hidden structures and ensure criminal proceeds are returned to victims," he said.

Jayne Limond, deputy director of asset recovery at the bureau, added: "This outcome reinforces Guernsey's commitment to combating financial crime wherever it originates and demonstrates the strength of our legal framework and our determination to support global justice efforts".

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