A former Onecoin investor has filed a lawsuit against the firm for scamming its investors. Onecoin is a crypto firm notorious for running a multi-billion pyramid scheme based on crypto.
Named Christine Grablis, the investor is suing the firm over her losses. She claims that she lost approximately $130,000 in the scheme. Not only does Grablis aim to have these funds returned, but she also wants the firm to compensate her for damages. On top of this, she also seeks a class action on behalf of other individuals that had bought into the scheme.
A law firm named “Silver Miller” filed the lawsuit in a New York court on Tuesday on behalf of Grablis. The lawsuit claims Onecoin fraudulently promoted crypto investments and went against federal securities laws.
David Silver, Grablis’ lawyer said,
OneCoin’s principals and promoters duped investors worldwide into a reported $4 billion in investments in a cryptocurrency that never really existed. The size of the scam is staggering, as is the audacity of the people who not only pulled it off but who continue to defend it and promote it to this day.
Onecoin Created Worthless Tokens
The complaint says that the firm made false advertisements that claimed it operated mining pools. It needed investors to buy its tokens named “Onecoins” to access these mining pools. However, the company never mined any tokens. It instead created its tokens without following the procedure of making crypto. It also ignored the blockchain’s principles.
Onecoin made $3.8 billion between Q4 2014 and Q3 2016. The value of the Onecoin token allegedly went up from $0.56 to $33.60 in January last year. By this time, the firm had attracted more than three million investors. The tactic behind this success was promising investors rewards if they add more members to the network. The company promised a commission of between 10 and 25 percent for any new member that bought its trader package.
Onecoin Founders Charged with Several Crimes
According to a report, a US District Attorney charged the firm’s founders with different crimes in March this year. These crimes are wire fraud, securities fraud, and money laundering. The founders are siblings, Konstantin Ignatov and his sister Ruja Ignatova. Authorities arrested Konstantin shortly after the charges were filed. Ruja, who was the scheme’s mastermind is still at large. The case against them also named Onecoin Ltd and two other men as defendants.
Do you think Christine Grablis will emerge victorious in her case against Onecoin? Let us know in the comments below.