Onecoin claimants freeze assets of alleged fraudsters

On July 25, 2024, over 400 investors who fell victim to the notorious OneCoin cryptocurrency fraud secured Worldwide Freezing Orders from the High Court in London. These orders target numerous individuals and companies allegedly involved in one of the largest financial frauds in history.

The freezing orders have been issued against the founders of OneCoin, Dr. Ruja Ignatova, who remains a fugitive, and Karl Sebastian Greenwood, who has been a key figure in promoting the fraudulent scheme. Also included in the orders are OneCoin Limited and One Network Services Limited, the companies through which the fraud was allegedly orchestrated.

Additionally, high-profile promoters of OneCoin, such as Karri Wahlroos, Dr. Muhammed Zafar, Moynul Islam, and Monirul Islam, have been named. Two British nationals, Christopher Hamilton and Robert MacDonald, are also under scrutiny for allegedly laundering significant proceeds of the OneCoin fraud. Several companies believed to be owned by Dr. Ignatova are also implicated in the court orders.

The OneCoin investor group has initiated a legal claim against these individuals and entities in the High Court in London, alleging unlawful means conspiracy, deceit, breach of fiduciary duty, and dishonest assistance, among other charges. The investors seek damages to compensate for the losses suffered as a result of the OneCoin fraud, which is estimated to have defrauded tens of thousands of individuals worldwide of over $4 billion.

Mishcon de Reya LLP, an international law firm, is representing the investors in what is believed to be the first crypto-related group action of this kind in the UK. Rhymal Persad, a partner at Mishcon de Reya, emphasised the significance of the case, stating, “The fraudulent OneCoin scheme greatly impacted the lives of its victims, who ranged from sophisticated to lay investors, all of whom lost significant sums in what is believed to be one of the largest frauds ever perpetrated. On behalf of the victims, Mishcon de Reya has commenced what we understand to be the first-ever crypto-related group action of this kind in the UK.”

OneCoin, launched in 2014 and presented as a cryptocurrency competitor to Bitcoin, promised substantial returns to investors. However, it was soon revealed that OneCoin was not a legitimate cryptocurrency but a global Ponzi scheme. The fraud operated for years, ensnaring investors from around the world before its operations were exposed.

Jennifer McAdam, a member of the steering committee set up by the investor group to instruct Mishcon de Reya, expressed her relief at the progress being made. “This is a really important step for victims who have been seeking justice for the fraud that has been perpetrated against them. It has taken a long time to get to this point, but this is a significant step to ensure those allegedly responsible for carrying out these unlawful acts are properly held to account.”

The legal claim against Dr. Ignatova and the other defendants is being brought on an "opt-in" basis, meaning that only those investors who actively choose to join the High Court claim will be entitled to any recoveries obtained through the litigation. Eligible OneCoin investors who have not yet joined the claim are encouraged to do so to ensure they can participate in any potential financial recoveries. Investors interested in joining the claim can find full details and opt-in at OneCoinClaim - Justice for Victims.

This legal action marks a significant step forward for victims of the OneCoin fraud, bringing them closer to potential redress after years of pursuing justice.