Clients of OneCoin have trouble effecting service on defendants
Ruja Ignatova, the “crypto queen” behind OneCoin, is said to be evading service in the lawsuit brought by clients who claim to have been defrauded by OneCoin.
The clients of crypto scheme OneCoin who have recently filed their first amended complaint against the firm and a number of individuals behind it, are now having trouble effecting service on some of the defendants in their case.
The lawsuit, which is currently pending at the New York Southern District Court, hit a formal obstacle on Friday, August 23, 2019, as all proceedings in the case were stayed until all defendants have been served.
Let’s recall that the list of defendants in this case is rather long. It includes OneCoin Ltd, as well as Konstantin Ignatov (the leader of the entity); his sister Ruja Ignatova; Sebastian Greenwood – co-founder of OneCoin; Irina Andreeva Dilinska- the head of OneCoin’s legal and compliance department; the so-called “Scott Group” – a number of individuals allegedly involved in the laundering of OneCoin’s proceeds.
According to the plaintiffs, the OneCoin Defendants were able to sustain their massive fraud for years, in large part, because Mark Scott and his partners – David Pike and Nicole Huesmann – laundered the criminal proceeds OneCoin obtained from selling fraudulent investment programs to the plaintiffs and the proposed class.
The plaintiffs in this lawsuit 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.
On Friday, the plaintiffs explained that OneCoin Ltd and Ruja Ignatova are domiciled in Bulgaria and are believed to be evading service. Sebastian Greenwood is domiciled in Sweden and is believed to be evading service.
Judge Valerie E. Caproni said that, starting on September 3, 2019, the Lead Plaintiff must file a letter on the first business day of each month updating the Court on his efforts to effect service on all defendants who have not been served. Lead Counsel is warned against missing these deadlines and must be diligent in effecting service.
The plaintiffs in the civil case request (inter alia) preliminarily enjoining the defendants from making further transfers or dissipations of the investments raised from the offer and sale of OneCoins and in connection with the OneCoin trader packages/memberships, or using such funds in any further purchases or transactions. The plaintiffs also request an accounting of the remaining funds and assets raised from the plaintiffs and the Class in connection with the offer and sale of OneCoins and the OneCoin trader packages/memberships. Further, the plaintiffs seek rescission of the investments made by them and the Class relating to the offer and sale of OneCoins and the OneCoin trader packages/memberships and/or compensatory damages.
