OneCoin and ‘Crypto Queen Face $4B Fraud Suit
According to documents recently filed in New York federal court, Bulgarian firm OneCoin Ltd., self-styled “Crypto Queen” Ruja Ignatova, and Gilbert Armenta (a Florida broker), declined to respond a proposed class action over the alleged $4 billion OneCoin cryptocurrency scam.
Investors Donald Berdeaux and Christine Grablis brought the action, declaring OneCoin was a “massive” $4 billion Ponzi scheme that deceived millions of clients.
OneCoin Generated Worthless Currency To Deceive Customers
According to the suit, customers were deceived into believing that the OneCoin cryptocurrency had a real value and could be mined. In reality, OneCoins were automatically generated as needed, and most investors bought fake coins that did not exist on a blockchain.
In turn, investors now accuse OneCoin and Ms. Ignatova of fraud, Exchange Act violations, breach of contract, and civil conspiracy — among others. Mr. Armenta faces allegations of assisting fraud.
The case started back in May 2019, and the claims have since been amended twice. OneCoin and Ms. Ignatova were served the first amended complaint in early February 2020 and, according to investors, have been in default since February of last year.
The Accused Ms. Ignatova & Mr. Armenta Have Both Defaulted On Complaints
Based on court filings, Mr. Armenta was not added to the suit until the second amended complaint —filed in September 2020.
The clerk of the court recently stated that all three defendants have not “filed an answer or otherwise moved with respect to the complaint or amended complaint,” adding that their defaults are “hereby noted.”
The alleged scheme has spawned numerous criminal cases as well. Prosecutors have charged Ms. Ignatova with fraud, and former Locke Lord LLP attorney Mark S. Scott was found guilty in November 2019 of helping her launder $400 million and deceive financial entities.
Think You Have a Case? Speak with a Ponzi Scheme Lawyer
Were you a victim of a Ponzi scheme? If you or someone you know has lost money as a result of a scheme, speak to an experienced investment fraud attorney today. Dimond Kaplan & Rothstein, P.A. has vast experience with cases related to Ponzi schemes. The firm has recovered millions of dollars for victims and we will aggressively pursue claims to recover your losses.
Contact a Dimond Kaplan & Rothstein Attorney Today
To schedule an appointment for a FREE case evaluation, contact a Ponzi Scheme attorney at Dimond Kaplan & Rothstein, P.A. today.
Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule a FREE case evaluation. Our offices are located in Miami, Los Angeles, West Palm Beach, New York, and Naples and we represent clients nationwide. Translation services are available.