OneCoin Investor Sues The Crypto Company For Running A Multi-billion Dollar Pyramid Scheme
Christine Grablis, who was an investor in OneCoin says that she has lost about $130,000. Now she seeks to represent all those have been defrauded by the company by suing it.
BitcoinExchangeGuide had reported in March 2019 that Konstantin Ignatov, the leader of OneCoin, had been detained in California. The Department of Justice (DOJ) stated that there was “no condition or combination of conditions” that would ensure that Ignatov would show up, and or that the safety of the community would be maintained if he was not detained.
The complaint alleges that OneCoin Ltd., its related corporate entities, and the companies' founders and principals fraudulently promoted cryptocurrency investments and engaged in an unregistered offering and sale of securities that violated numerous federal securities laws.
Furthermore, the complaint shows that Florida-based attorney Mark Scott laundered hundreds of millions of dollars of investor funds. Silver Miller currently represents cryptocurrency investors in actions pending against the Coinbase, Kraken, BitConnect, and Cryptsy exchanges as well as blockchain start-ups Nano and GigaWatt and cryptocurrency hedge fund Coin Signals.
OneCoin is considered a Ponzi scheme, both due to its organizational structure and because of many of the people who are central to OneCoin have previously been involved in other similar Ponzi schemes. US prosecutors have alleged the scheme brought in ~$4 billion worldwide from victims. The pyramid worked throughout Europe and Asia for more than two years and attracted millions of dollars before the regulators of different countries began to worry about the legitimacy of this business.
Reportedly, one of the culprits registered a company, One Concept Pvt Ltd in Singapore and solicited investment from residents via the firm. Residents invested in the OneCoin scheme by purchasing online educational courses tied to promotional tokens and participants were required to bring in new users to reap huge referral rewards. The Singapore Police Force reiterated that the activities of the OneCoin promoters contravenes the laws of the land and as such, the culprits will be punished accordingly.
Ignatov’s older sister, Ruja, who served as OneCoin’s head until her exit two years ago. The majority of the top leaders have now disappeared or have been arrested.