LONDON--(BUSINESS WIRE)--A civil claim to be brought in London's High Court offers a new hope of redress to victims of the OneCoin cryptocurrency fraud worldwide.
OneCoin was launched in 2014 as a cryptocurrency to rival Bitcoin and promised investors significant returns on their investment. In fact, OneCoin was not a legitimate cryptocurrency at all, and was operated as a Ponzi scheme which defrauded investors around the world.
The claim, which will be brought by a class of defrauded OneCoin investors, by leading London-based international law firm Mishcon de Reya LLP, will target one of the founders of OneCoin – Ruja Ignatova (the self-proclaimed "Crypto Queen"), as well as various others who were involved in the fraudulent scheme.
The aim is to recover for investors the losses they suffered at the hands of those who perpetrated the fraud.
The claim will be brought on an "opt-in" basis. This means that OneCoin investors who fell victim to the fraud will have to confirm that they want to be added to the claim as a member of the claimant group. The claim will be brought on a "no win no fee" basis.
Investors who are not part of the investor group will not be entitled to receive any recoveries that may be obtained as a result of the litigation. Those investors in OneCoin who believe they may be entitled to join the claim can find details on how to do so below.
Rhymal Persad, Partner at Mishcon de Reya, said;
“The fraudulent OneCoin scheme concocted by Ruja Ignatova and others greatly impacted the lives of its victims who ranged from sophisticated to lay investors.
“The forthcoming claim in the High Court in London aims to achieve at least partial redress for those investors who were taken in by the deception and who suffered losses as a result".
The claim is currently in the "building" stage, where investors who were victims of the OneCoin fraud, and who have a valid claim, are identified so that they can form part of the claimant group.
How to join the claimant group
Prospective claimants should register their interest in becoming a member of the claimant group as soon as possible (details on registration below). It is intended that the claim will be filed at the English High Court soon, following which, the opportunity to join may become more limited.
The claim will be funded by a respected third party litigation funder, who will pay for Mishcon de Reya's legal fees and other costs of the proceedings. If the claim succeeds, the funder will be entitled to a percentage return of the recovery that is made from the defendants.
Investors who believe they are victims of the OneCoin fraud can register to join the claim at the claimant website: https://www.onecoinvictims.com/1c, where they will be asked to complete an initial set of questions about their investments in OneCoin, to provide their name, address and contact details, and to upload documents for identity verification. Pursuant to English Court rules, these details are required in order to register signatories as claimants in the case.
Before prospective claimants are joined to the claimant group, they will receive full details regarding the terms of their participation in the proceedings, including (but not limited to) the funding arrangement, the distribution of any recoveries and the relationship between themselves and other members of the claimant group.
Prospective claimants do not need to live or be registered in England and Wales.
Detailed Background to the OneCoin fraud
As currently understood, in 2014, Ruja Ignatova, a Bulgarian native and the public face of OneCoin, presented OneCoin as a golden opportunity to invest in a legitimate cryptocurrency. She attracted investors worldwide with the promise of lucrative returns.
Investors bought packages of educational materials and tokens, which could then be converted into "OneCoins". Ignatova promised that the OneCoins could be converted into bona fide currency in the near future.
Investors believed they would eventually be able to sell their OneCoins on a public exchange for fiat currency, and that a single OneCoin, valued below $0.50 in the early stages of the fraud, could exceed $100 in value.
By mid-2017, OneCoin's reach had extended across more than 175 countries, and had amassed global investment in excess of £4 billion, according to estimates from the US Department of Justice. Investors were assured that their OneCoin was increasing in value, while safely “held” in an online wallet. The date at which OneCoin could be converted into cash-convertible form was, however, repeatedly delayed.
In fact, Ignatova and her associates were operating a Ponzi scheme: using investments from new investors to pay previous investors, and pocketing vast sums of misappropriated investor funds. The asset itself – the OneCoin - was not a legitimate cryptocurrency and had no value.
Sebastian Greenwood, OneCoin's co-founder, was arrested in Koh Samui, Thailand in July 2018 and extradited to the US, where he was recently sentenced to 20 years in prison for his involvement in the fraud. Konstantin Ignatov – the brother of Ignatova - was arrested in Los Angeles airport in March 2019. He admitted money-laundering and fraud as part of a plea-deal arrangement with US prosecutors and is awaiting sentence.
Ignatova has so far evaded justice, having disappeared in October 2017. She was charged with fraud in absentia by the United States District Court, Southern District of New York on 12 October 2017 and US and federal warrants have been issued for her arrest. Ignatova is on the FBI’s Top 10 Most Wanted List, with a $250,000 reward offered for any information leading to her arrest.
About Mishcon de Reya LLP
Mishcon de Reya is an independent law firm, which now employs over 1300 people with more than 630 lawyers offering a wide range of legal services to companies and individuals. The firm has grown rapidly in recent years, showing more than 40% revenue growth in the past five years alone.
With presence in London, Oxford, Cambridge, Singapore and Hong Kong (through its association with Karas So LLP), the firm services an international community of clients and provides advice in situations where the constraints of geography often do not apply.
The work the firm undertakes is cross-border, multi-jurisdictional and complex, spanning six core practice areas: Corporate; Dispute Resolution; Employment; Innovation; Private; and Real Estate.
