OneCoin leader Konstantin Ignatov wants lawsuit brought by clients to be stayed
Konstantin Ignatov and Mark Scott – defendants in a lawsuit brought by clients of cryptocurrency scam OneCoin, request a stay of the civil action.
Shortly after clients of notorious cryptocurrency scam OneCoin filed their first amended complaint against the firm and the individuals associated with it, the defendants have pushed to stay the lawsuit.
Mark Scott, who is accused of having aided OneCoin, has requested a stay of the civil matter pending the outcome of the related criminal proceedings against him and other defendants, including OneCoin’s leader Konstantin Ignatov. Earlier this week, Konstantin Ignatov filed a response to Scott’s motion. Both Scott and Ignatov argue that the criminal and civil cases principally concern the “same matter,” which presents the “strongest case for granting a stay” so as to avoid any prejudice to the defendants as they defend both cases.
The plaintiffs, however, disagree with the defendants’ motion. In their response filed on August 14, 2019, the clients of OneCoin insist thar there has been no showing that any civil discovery taken in this case would be used in any criminal prosecution, let alone that the defendants would be unduly prejudiced. Hence, there is no basis for the Court to grant a stay in this matter. According to the plaintiffs, such a stay would improperly hinder and prejudice the prosecution of the plaintiffs’ claims against numerous defendants.
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.
The plaintiffs have brought their action for themselves and as a class action on behalf of 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 (the “Class Period”) and who suffered financial injury as a result thereof.
The clients of OneCoin 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. The plaintiffs also 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.