- The FBI arrested the alleged leader of OneCoin on counts of defrauding investors.
- The firm offered attractive commissions and incentives to promote their coins.
According to a legal filing in a US district court in New York, Christine Grablis, a cryptocurrency investor, has sued OneCoin for fraudulent activities. The firm allegedly duped her into making an investment of $130,000 in OneCoin. The accuser has asked for an annulment of her investment and has pleaded for a refund and additional rebate for unspecified damages. The litigation also summoned the scammers who actively promoted and lured the investors to the notorious scheme.
Earlier in March, Konstantin Ignatov, the alleged leader of OneCoin, and his partners were arrested by the FBI on grounds of defrauding investors for almost $4 billion.
OneCoin serves as a multi-level marketing network. Apparently, 3 million users worldwide were approached with appealing rewards for buying their coins. The affiliate members were paid by the company who introduced the scheme to other people.
The firm operated in Europe and Asia for more than 2 years when the question of its legitimacy aroused among the regulators of different countries. The government of Kazakhstan labeled the company as a scam in 2017. A few months later, the Indian Police arrested Konstantin’s sister Ruja Ignatova, the founder of OneCoin, along with 30 other individuals. The FBI has also arrested Mark Scott, a former partner with the international law firm Locke Lord.