OneCoin sued by former investor over multi-billion dollar fraud

OneCoin, a controversial cryptocurrency issuer accused of running a $4 billion pyramid scheme, has been sued by a former investor over her losses.

A cryptocurrency investor has sued OneCoin, a controversial, multi-billion dollar pyramid scheme over her losses.

"OneCoin's principals and promoters duped investors worldwide into a reported $4 billion in investments in a cryptocurrency that never really existed," the plaintiff's lawyer David Silver said.

Grablis claims she invested an initial $16,000 in OneCoin in August 2015, followed by a further $103,000 in 2016.

The lawsuit names Ruja Ignatova, Konstantin Ignatov, Sebastian Greenwood and Mark Scott as the defendants, and accuses OneCoin of falsely advertising that the company was operating "Mining pools" that can be accessed through purchasing its tokens.

The complaint went on to say that no mining of OneCoins ever occurred and that the coins were created "At will without adhering to any of the actual principles of blockchain technology."

Founded back in 2014 by Ruja Ignatova and her brother Konstantin Ignatov, OneCoin was flagged by international financial regulators as early as 2016.

Following a mass arrest of alleged OneCoin promoters in India, prosecutors in China have charged more than 100 people in connection to the scheme in 2018.

High-profile indictments and arrest were made recently, starting with the company's founder and CEO. According to a report by Bloomberg, Ruja Ignatova has been charged with securities fraud and money laundering in the state of New York.

Ignatov has reportedly been transferred to a federal prison in New York where he is awaiting trial for wire fraud in connection with the OneCoin scheme.