Mishcon de Reya, an international law firm headquartered in London, has announced its intention to file a class-action lawsuit on behalf of OneCoin investors who experienced losses due to the 2014 cryptocurrency fraud.
According to a press release issued on Monday, September 25, the firm stated that a civil claim will be filed in London’s High Court with the aim of recovering the losses suffered by investors from those who orchestrated the fraud. Mishcon emphasized that the case will be pursued on a “no win, no fee” basis, indicating that the firm will only receive payment if it secures a satisfactory outcome for the investors.
High court claim seeks restitution for OneCoin victims
Rhymal Persad, a Partner at Mishcon de Reya, highlighted that the fraudulent OneCoin scheme orchestrated by Ruja Ignatova and others had a significant and detrimental impact on a wide range of victims, spanning from sophisticated investors to lay individuals. The upcoming claim in the High Court of London aims to seek at least partial restitution for those who fell victim to the deception and suffered financial losses as a consequence.
As of now, the claim is in the preliminary stage of preparation, and individuals affected by the OneCoin fraud have not yet formally joined the group of claimants. The announcement encourages prospective claimants to express their interest in becoming a member of the claimant group promptly. It is anticipated that the claim will be filed in the English High Court in the near future, after which opportunities for joining may become more limited.
The funding for the claim will be provided by the respected third-party litigation funder, who will bear Mishcon de Reya’s legal expenses and other costs related to the legal proceedings. In the event of a successful claim, the funder will be entitled to a percentage share of the recovery obtained from the defendants.
Before prospective claimants officially join the claimant group, they will receive comprehensive information regarding the terms of their participation in the proceedings. That will include details on the funding arrangement, the distribution of any recoveries, and the relationship between themselves and other members of the claimant group. It is important to note that prospective claimants do not need to reside or be registered in England and Wales.
OneCoin’s controversial past
In 2014, Ruja Ignatova, a Bulgarian national, promoted OneCoin as a legitimate cryptocurrency investment opportunity. She enticed investors worldwide with the promise of high returns. Investors purchased educational packages and tokens, which could be exchanged for “OneCoins.” Ignatova assured them that these OneCoins would soon be convertible into actual currency.
Investors believed they could eventually trade their OneCoins on a public exchange for fiat currency, with the hope that a single OneCoin, initially valued at less than $0.50, might soar in value to over $100.
By mid-2017, the company had spread to more than 175 countries and accumulated global investments surpassing £4 billion, as estimated by the US Department of Justice. Investors were led to believe their OneCoins were appreciating worthwhile being securely stored in an online wallet. However, the promised conversion to cash was consistently postponed.
In truth, Ignatova and her associates were orchestrating a Ponzi scheme, using funds from new investors to pay off earlier ones and siphoning off significant amounts of misappropriated investor money. The OneCoin itself was not a legitimate cryptocurrency and held no real value.
Sebastian Greenwood, a co-founder of OneCoin, was apprehended in Koh Samui, Thailand, in July 2018 and later extradited to the US. He was recently sentenced to 20 years in jail. Konstantin Ignatov, Ignatova’s brother, was arrested at Los Angeles airport in March 2019. He confessed to money laundering and fraud as part of a plea deal with US prosecutors and is awaiting sentencing.
Ruja Ignatova remains at large, having disappeared in October 2017. She was charged with fraud in absentia by the United States District Court, Southern District of New York, on October 12, 2017. Both US and federal warrants have been issued for her arrest. Ignatova is featured on the FBI’s Top 10 Most Wanted List, with a $250,000 reward offered for any information leading to her capture.
