The creators of OneCoinRujaIgnatova and Konstantin Ignatov are presently in the midst of a new lawsuit. According to the sources, the sibling duo has reportedly run a Ponzi Pyramid scheme and wrongfully duped some crypto investors.
In this week, Silver Miller came forward to file the lawsuit on behalf of Christine Grabis, one of the investors. The lawsuit came into being in the South District Court in the Big Apple, US. The sources said that Christine is pushing forward a class-action case against the operators of OneCoin, the Ignatova siblings.
Let’s dig deeper!
The lawsuit claims that the brother & sister duo came up with multi-billion-dollar digital currency company on sheer deceit and lies. By the looks of it, the siblings told the investors that they would get maximum returns with very minimal risk. In reality, the business was only a pyramid scheme which was built on smoke & mirrors alongside zeros and ones. The people who made a surplus investment on the venture were at loss whereas the defendants got rich.
OneCoin, based in Bulgaria initiated an endless ICO, Initial Coin Offering given that the cryptocurrency didn’t ever come into existence. The lawsuit claims that the blockchain of the technology also didn’t exist in the first place. The sibling duo showcased the mining farm which never took pilot after the ICO came to an end. Nevertheless, the brother and sister duo were more than capable of selling “nothingness” to the blinded investors.
OneCoin Creators are in the wind
The operators sold the idea of OneCoin through a properly thought densely-packed marketing system. Long story short, the investors fell victim of the Ponzi scheme which the originators of the OneCoin brought to life. According to the sources, the fraudulent scheme was able to generate $4 billion.
According to Grablis, Ruja and Konstantin have made themselves extremely rich by fooling the cryptocurrency traders. Gradblis said that the sibling duped the digital currency traders by convincing them to purchase memberships and participation packages. At the beginning of the Initial Coin Offering, the accused will use the funds to pay off previous investors. And in turn, the investors will sign up others. And this is how the sibling ran their Ponzi scheme.
The Ponzi schemes usually take place during an Initial Public Offering and also in cryptocurrency’s Initial Coin Offering. During Ponzi schemes, the people at the bottom face the music whereas the creators of the schemes, profit.
The complaint also reads that the broken promises by the creators are affecting the financial stability of the investors. Moreover, Grablis said that she invested $15,800 by becoming a member of OneCoin in 2015. On the other hand, the investor also gave $103,000 to make the venture viable. And now the losses are around $130,000.
Grablis put forward a class-action suit to recover the money that the other investors also lost to the Ponzi scheme. More than a thousand investors fell into the prey of the Ponzi scheme. OneCoin came into being in the year 2014. During the inception, Ruja& Konstantin said that there are around 3 million active users of OneCoin around the world.