In a noteworthy development, aggrieved investors of the infamous OneCoin cryptocurrency scheme are turning to the UK’s judicial system.
OneCoin, once showcased as the next crypto contender to Bitcoin, has since been denounced as a global deception that stripped investors of over $4 billion. The class-action lawsuit is geared toward obtaining restitution for the scheme’s victims.
These victims, who span the gamut from seasoned investors to novices, were lured into the scheme by promises of astronomical returns. Yet, as more information surfaces, it’s become evident that OneCoin was not a genuine cryptocurrency but a meticulously orchestrated Ponzi scheme.
The London High Court Lawsuit
Slated to be filed in London’s High Court, the lawsuit represents a consortium of defrauded OneCoin investors. Their legal claim targets several defendants, most notably Ruja Ignatova, OneCoin’s co-founder, infamously dubbed the “Crypto Queen.”
Ignatova, once an active promoter of OneCoin, vanished from the public eye in October 2017. Her current location remains a mystery, intensifying the intrigue around this already controversial cryptocurrency.
The internationally recognized law firm Mishcon de Reya LLP will oversee this case. The firm’s involvement stems from instructions given by Jen McAdams, a prominent OneCoin victim advocate and author of “Devil’s Coin.”
This lawsuit adopts an “opt-in” approach. Accordingly, only those OneCoin victims who actively choose to join this group litigation can benefit from any successful outcome. Mishcon de Reya is handling the case on a “no win no fee” basis, alleviating some financial concerns for potential claimants.
Rhymal Persad, a partner at the firm, expressed the firm’s commitment: “The fraudulent OneCoin scheme had far-reaching implications for its victims. Our objective in the High Court is to achieve redress for those deceived by this deception.”
A Deep Dive into OneCoin’s Controversial Past
Launched in 2014, OneCoin was the brainchild of Ruja Ignatova, a Bulgarian native. With a compelling narrative of a promising cryptocurrency, investors worldwide flocked to buy educational packages and tokens, believing they’d soon convert their OneCoins into genuine currency.
By 2017, estimates suggest OneCoin attracted investments exceeding £4 billion across over 175 countries.
However, the facade began to crumble. Delayed conversion dates and inflated value promises raised eyebrows. As it turned out, Ignatova and her accomplices were operating a classic Ponzi scheme, funneling new investments to pay off earlier investors.
Adding to the drama, Sebastian Greenwood, OneCoin’s co-founder, was apprehended in 2018 and later sentenced to 20 years in a U.S. prison for his role. Konstantin Ignatov, Ignatova’s brother, was arrested in 2019, and after admitting his guilt, awaits sentencing.
Yet, Ruja Ignatova remains elusive. In 2017, she faced fraud charges in absentia from the United States District Court, Southern District of New York. With federal warrants active and a spot on the FBI’s Top 10 Most Wanted List, a $250,000 bounty is now on offer for information leading to her capture.
As the litigation process begins, all eyes are on the UK’s High Court. The outcome of this lawsuit could shape the future of cryptocurrency regulation and investor protection on a global scale.
