Alleged Multibillion-Dollar Pyramid Scheme OneCoin Sued by Former Investor

The notorious cryptocurrency investment scheme OneCoin, widely claimed to be a fraud, is being sued by a former investor over her losses.

In New York Tuesday by law firm Silver Miller on behalf of the investor, Christine Grablis, alleges that OneCoin fraudulently promoted cryptocurrency investments and violated federal securities laws.

Grablis complains that she lost around $130,000 in the scheme and is seeking to have those funds returned, as well as damages.

She is also seeking a class action on behalf of other investors who lost money through the scheme.

Complaints about OneCoin have been ongoing since at least as far back as 2016, when Belgium's financial regulator issued a warning about the scheme.

OneCoin functioned as a multi-level marketing scheme and was founded by an individual called Ruja Ignatova.

Given the huge amount said to have been lost to the scheme, various government authorities from across the world, including the U.K., Germany.

Regarding the scheme, while Indian authorities arrested.

The leaders of the scheme, Ruja Ignatova and Konstantin Ignatov, on charges of wire fraud, securities fraud and money laundering.

"They promised big returns and minimal risk as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich."