A German court last week upheld the freeze on 3 million euros linked to the OneCoin cryptocurrency scheme, rejecting an appeal from a shell company. This decision by the Higher Regional Court in Hamm keeps funds inaccessible as part of ongoing investigations into alleged money laundering.
Germany's financial watchdog, BaFin, previously identified approximately 360 million euros flowing through various OneCoin bank accounts within the country. These substantial transactions occurred between December 2015 and 2016, forming a critical part of what investigators describe as OneCoin's extensive international money laundering operation. The scheme, fronted by its founder Ruja Ignatova, was widely labeled a pyramid operation that promised lucrative returns on a non-existent cryptocurrency.
Most of these funds had already vanished by the time BaFin intervened in early 2017. Only 29 million euros remained in various accounts, which authorities then swiftly froze. These assets have stayed frozen throughout the continuing investigative process, preventing their further movement or dispersal by the scheme's operators.
The recent court challenge specifically sought to unfreeze 3 million euros of these assets. A shell company, reportedly used by OneCoin for transfers within Germany, argued the sum represented legitimate transaction fees derived from its operations. It filed a formal complaint against the initial freeze order, claiming the funds were not illicit proceeds.
But the Higher Regional Court in Hamm found this argument unconvincing. After reviewing the evidence, the court dismissed the objection outright, ruling that the 3 million euros must remain frozen. This judicial action ensures the funds are preserved and available should a criminal conviction occur later against individuals or entities tied to OneCoin.
Separately, the Managing Director of the Greven-based shell company faces specific charges for violating Germany's Payment Service Supervision laws. These regulations govern financial services and transactions, aiming to prevent illicit activities. That particular case continues to progress through the legal system, independent of the broader OneCoin fraud investigations.
Broader investigations into the OneCoin scheme are active across multiple jurisdictions beyond Germany. Authorities in both Germany and Bulgaria, where much of OneCoin's operational infrastructure was based, are conducting parallel probes. These efforts aim to unravel the full scope of the alleged financial crimes, identify perpetrators, and recover assets for victims.
Bielefeld prosecutor Ralf Günther confirmed the extensive nature of the ongoing work. He told the local newspaper Westfalen-Blatt on Friday that "the investigation is far from complete." This statement indicates that more legal actions, including potential indictments and asset recovery efforts, are expected to emerge as authorities continue their scrutiny. The sustained freezing of assets and active multi-national investigations highlight the complex, persistent effort required to dismantle large-scale financial schemes like OneCoin and pursue justice for those affected.