Over 41,000 outstanding claims in the Zeek Rewards receivership face forfeiture if claimants do not submit required OFAC certification and release documents by December 31st. Kenneth D. Bell, the court-appointed Receiver, issued this final deadline in an October 5th update to victims. Funds currently held in reserve for these uncertified claims will be reallocated.
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury enforces economic and trade sanctions based on U.S. foreign policy and national security goals. OFAC certification ensures that recovered funds are not disbursed to individuals or entities on sanctioned lists, preventing illicit financial flows. This compliance step is standard practice in large fraud recovery cases involving international participants.
Zeek Rewards, operated by Rex Venture Group, LLC, collapsed in August 2012. It was identified as a Ponzi and pyramid scheme that defrauded over two million participants globally out of an estimated $600 million. The Securities and Exchange Commission (SEC) initiated enforcement actions, leading to the appointment of a Receiver by the U.S. District Court for the Western District of North Carolina to oversee asset recovery and distribution to victims.
Despite years of communication and repeated requests, more than 41,000 claims still lack the mandatory OFAC certification and release. These claims are currently holding a portion of the recovered assets in reserve, preventing their full distribution to the verified victims who have completed all necessary paperwork. The Receiver's office has actively sought this documentation, issuing multiple notices and providing clear instructions on the filing process.
The December 31st deadline is firm. Claimants who fail to provide the required OFAC certification and release by this date will see their claims deemed forfeit, pending court approval. The funds held in reserve for these claims will then be released and distributed to claimants with allowed and fully documented claims. This reallocation will result in a larger pro-rata payment for those victims who have complied with all procedural requirements.
The Zeek Rewards case is one of the largest Ponzi schemes in U.S. history, involving complex legal processes to identify victims, recover assets, and distribute funds equitably. The Receiver's ongoing efforts focus on maximizing recovery for victims while adhering to strict regulatory compliance. The finality of the December 31st deadline underscores the critical importance of prompt action for the remaining 41,000+ claimants.
Victims seeking to complete their OFAC certification or confirm their claim status should visit the official Zeek Rewards Receivership website, www.zeekrewardsreceivership.com, for detailed instructions and contact information before the December 31st deadline.