It is evident that Konstantin Ignatov and his sister, Ruja have not seen the last of their OneCoin Ponzi Scam. More Victims of the family-owned cryptocurrency scam are coming out with fresh lawsuits.
The new lawsuit is from one of the victims known as Donald Berdeaux. He has lost more than $700,000 while investing in the Bulgaria-based cryptocurrency, OneCoin.
Berdeaux invested the fund in the company within the space of 10 months, which would theoretically infer that he deposited at least $70,000 each month.
Donald Berdeaux is not the only one coming out to file for claims. Another victim that fell for the Ponzi scheme, Christine Grablis lost $100,000 that she invested.
Although this is not Christine’s first lawsuit against the company, she claimed that the company defrauded so many investors but she and Berdeaux lost the most funds since they were the biggest investors.
According to Christine’s initial lawsuit, OneCoin:
“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.”
Konstantin Ignarov, OneCoin’s CEO has been detained since March but his sister, Ruja (self-acclaimed Crypto Queen) is currently at large. The brother earlier pleaded not guilty to fraud charges.
$4 Billion Ponzi
OneCoin started operations around September in 2014. Since then, it has earned close to $4 Billion. However, OneCoin’s rapid growth was attributed to its ponzi features which attracted smany investors with the promise of mouth-watering interest.
Interestingly,even amidst the lawsuits, OneCoin is still operating. The official site still offers learning materials which are actually plagiarized contents to investors to sell.
Investors are paid 10 percent or 20 percent of their initial investments. However, Ponzi Schemes are never reliable. Although they offer huge Return on investments, they generally crash when they can’t get new investors because the older ones are paid with funds from new participants.
With increasing adoption of cryptocurrencies, investors are advised to always stick with regulated investment platforms where their investments are safe.