A proposed class-action lawsuit has been filed against OneCoin in New York.

The opening introduction of the complaint quotes Manhattan U.S. Attorney Geoffrey S. Berman, and pretty much says it all;

[They] created a multi-billion-dollar “cryptocurrency” company based completely on lies and deceit.

They promised big returns and minimal risk, but … this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones.

Investors were victimized while the defendants got rich.

OneCoin investor Christine Grablis is named as plaintiff in the case.

Named defendants are OneCoin, Ruja Ignatova, Konstantin Ignatov, Sebsatian Greenwood and Mark Scott.

Grablis’ complaint relies heavily on the DOJ’s various cases against OneCoin insiders, namely Ignatova, Ignatov and Scott.

Sebastian Greenwood is believed to be under US custody but has been in an information blackout since extradition from Thailand.

The lawsuit also features OneCoin’s own marketing material and backoffice screenshots.

Representing Grablis is the law firm Silver Miller, who are also behind the still playing out BitConnect class-action.

Grablis claims to have invested approximately $130,000 into OneCoin between August 2015 and 2016.

She was part of OneCoin’s group of unofficial US investors, which the lawsuit claims was headed up by

  1. Tom McMurrain
  2. Denis Murdock
  3. Sal Leto
  4. Bob Byrum
  5. Carl Wilt
  6. Greg Knox
  7. Margie Scott
  8. Maurice Katz
  9. Steve Gotberg
  10. Kevin Foster
  11. Sarah McGee
  12. Glenn Smith
  13. Ken Labine – Canada – recruits in USA
  14. Sheri Hilliard-Pearce
  15. Jason Richard Mangan
  16. Charlotte Mangan
  17. Joseph W. Piper
  18. Jodi Tressler Greene
  19. Keith Bliss
  20. Stan Harris
  21. Mike DiGaetano
  22. Michael & Latasha DeArmond
  23. Jeff Shofner
  24. John Reilly
  25. Ray Lopez
  26. Willie Tubbs
  27. Mary Spicer
  28. Kaytee Godiva
  29. Brent Patrick
  30. Beverly Washington
  31. Sandy Davis
  32. Tory Bailey
  33. Mark Halbig
  34. Erik Enriquez
  35. Jack Palis
  36. Patricia Ann
  37. Jeff Litzenberger
  38. Barbara Lloyd
  39. Lucille Bolton Shannon
  40. Alan C. Delaney
  41. Andy McCormack
  42. Joseph A Mitchell
  43. Rick Harris
  44. Katherine Clement
  45. Erick Brent
  46. Ellis Vernon
  47. Dean Hackney
  48. Tom Cao
  49. Robert Townsend
  50. Crystal Marie Spath
  51. Belinda Aquino
  52. Susan Bayerle
  53. Jennifer Vloggity-Korol
  54. Wayne Bailey
  55. Shanna McCarty
  56. Robin ‘Robertson’ Keith
  57. Steve Stucke
  58. John Reilly and
  59. Richard Marks

GRABLIS herself met on multiple occasions with Sal Leto, Bob Byrum, Carl Wilt, Greg Knox, and Margie Scott, who each acted as representatives of ONECOIN LTD. in brokering the purchase/sale to Plaintiff GRABLIS of the OneCoin trader packages/memberships in which she invested.

Note that while the above names are cited as primary recruiters for OneCoin in the US, they are not named defendants.

Citing multiple violations of the Securities Act and additional breach of contract, unjust enrichment, fraudulent inducement, fraudulent misrepresentation, negligent misrepresentation, conversion and civil conspiracy counts, Grablis seeks the establishment of a constructive trust, damages, accounting of funds remaining and cessation of OneCoin’s fraudulent business opportunity.

If approved, the lawsuit will proceed as a class-action, represented by Grablis and Silver Miller.

Possible roadblocks to the case include a lawsuit filed by the SEC, which would likely include the appointment of a Receiver.

If that happens, it’s practically guaranteed any competing civil lawsuits will be stayed.

Given we haven’t seen anything from the SEC regarding BitConnect though, whether they get involved in OneCoin is uncertain.

One differentiating factor between BitConnect and OneCoin is the arrest of several OneCoin executives.

Stay tuned for updates on the case.