Case brought by OneCoin victims may be dismissed, Judge warns

Maria Nikolova

The plaintiffs in a lawsuit targeting fraudulent cryptocurrency scheme OneCoin must show cause no later than April 16, 2020, why their case should not be dismissed for failure to prosecute.

The lawsuit brought by victims of fraudulent cryptocurrency scheme OneCoin may be dismissed, Judge Valerie Caproni of the New York Southern District Court has warned.

Memorandum Opinion & Order signed by the Judge on April 10, 2020, and seen by FinanceFeeds, states that the lead plaintiff must show cause no later than April 16, 2020, why this case should not be dismissed with prejudice for failure to prosecute under Fed. R. Civ. P. 41(b). The lead plaintiff is sternly warned that failing to comply with the Court’s orders going forward could result in sanctions. The Judge noted that the plaintiffs had not submitted a letter update for either March or April.

The plaintiffs in this case represent all individuals and entities who transferred to the OneCoin defendants, directly or indirectly, any fiat currency or cryptocurrency to invest in OneCoin Trader Packages or OneCoins from April 2014 through to and including March 2018 and who suffered financial injury as a result thereof.

Lead Plaintiff Donald Berdeaux and plaintiff Christine Grablis allege in the First Amended Class Action Complaint claims under the federal securities laws and common law against key operators of OneCoin Ltd. and certain of their enabling co-conspirators arising from a massive fraud perpetrated on millions of individual investors throughout the world causing injuries in excess of $4 billion through a densely-packed multi-level-marketing system.

Let’s recall that in August 2019, the Court stayed this case pending service of all defendants and ordered monthly letter updates from Lead Plaintiff on the status of service of process and warned against missing these deadlines. On February 3, 2020, Lead Plaintiff posted proof of service via the Court’s approved alternative means for defendants OneCoin Ltd. and Ruja Ignatova. On February 28, 2020, Lead Plaintiff voluntarily dismissed Irina Dilinska and Sebastian Greenwood from this case.

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