More than £8.5m that was scammed by a notorious cryptocurrency con artist – known as the ‘Cryptoqueen’ – is being returned to her victims, after Guernsey’s Royal Court seized it in January.
Dr Ruja Ignatova used property-based investment structures in Guernsey to hide money scammed from the victims of the global OneCoin cryptocurrency fraud, according to investigators.
Now that money is being sent back to Germany to compensate her victims, following a formal request from German authorities last year.
Neil Allen, Head of Guernsey’s Financial Intelligence Unit (FIU), said the case highlighted “the essential role of high-quality financial intelligence in protecting the global financial system”.
The Bulgarian-German con artist – who fled after an arrest warrant was issued for her in the US in 2017 – used the proceeds of the fraud to buy two luxury Kensington properties, and engaged “professional enablers” to hide the ownership of her Guernsey trusts.
Mr Allen said: “Our long-term collaboration with international partners helped expose hidden structures and ensure criminal proceeds are returned to victims.”
Locally, the FIU worked closely with the Economic & Financial Crime Bureau (EFCB) to investigate the crime, leading to the seizure of the money.
Jayne Limond, Deputy Director of Asset Recovery at EFCB, said the outcome reinforced Guernsey’s “commitment to combating financial crime” and “determination to support global justice efforts”.
Financial crime questions
Authorities have been eager to explain that Guernsey is committed to tackling financial crime on home soil, but it’s not a one-off incident.
Just two years ago, Guernsey was thrown into the international spotlight when it emerged that an alleged war criminal had been laundering money through an unlicensed local advisor – Ginette Louise Blondel.
At the time Express spoke to Guernsey-born reporter Rob Byrne, who helped break the story on the ‘Butcher of Hama’ – Rifaat al-Assad – for The Guardian and The Bureau of Investigative Journalism.
He also helped research the crimes of Dr Ignatova on the BBC podcast ‘The Missing Cryptoqueen’.
The release of the investigation into al-Assad and Ms Blondel resulted in the previous Conservative UK government to call for Guernsey to introduce fully-public beneficial ownership registers, to help tackle financial crime.
Labour Baroness Margaret Hodge reiterated the demand during a visit to the island earlier this month, saying the current government could “consider revisiting the advantages” of Guernsey’s relationship with the UK if changes weren’t made.
Last year, Guernsey passed its MoneyVal examination, when it achieved the “best outcome that could be expected” from the financial crime assessment.