Before its collapse, the token was the second-largest cryptocurrency by market capitalization after BTC. The project was launched in Bulgaria by Ruja Ignatova and Karl Greenwood. Ignatova has been wanted by the FBI since 2017, while Greenwood was sentenced to 20 years in prison. They claimed that OneCoin was backed by non-existent gold. Moreover, the project did not even use blockchain. All "coins" were merely entries in a database controlled by the company. From 2014 to 2019, 3.5 million people suffered losses totaling $4 billion. However, some estimates suggest losses could be as high as $19 billion. The Department of Justice began accepting applications for compensation until June 30. Authorities have allocated $40 million from confiscated assets for this purpose. The department acknowledges that full compensation is impossible. However, they will continue to seize criminal proceeds to compensate the victims.