A Judge from the New York Southern District Court, Valerie E Caproni, has recently signed an order that lifted the stay regarding a specific lawsuit. This lawsuit was brought forward by the victims of OneCoin, a fraudulent crypto scheme.
Timely Actions After Threats Of Nixing Case
The order was signed on the 1st of May by the Judge, following a teleconference appearance by the parties within the Court that happened on Friday. The parties have now been mandated to jointly submit a proposed schedule for the defendants to either move to dismiss, answer, or otherwise respond to the complaint in question. This must be submitted before the 8th of May, 2020
Judge Caproni had threatened to nix the lawsuit earlier, but the plaintiffs have responded to the concerns shared by the Court. They did so in a timely manner, explaining that the Court should not dismiss the action in regard to failing to prosecute.
The argument that the plaintiffs gave is that they had already invested a sizable amount of effort and time into this action. They further stated that they had completed services on all remaining defendants, and have prepared to proceed with the litigations as quickly as possible.
A $4 Billion Fraud Case
In this case, the plaintiffs represent all entities and individuals who had transferred to the defendants, OneCoin, other directly or indirectly, any form of cryptocurrency or fiat currency. The idea behind the transfer was to invest in OneCoin Trader Package or OneCoins from April of 2014 all the way to March of 2018, having incurred financial damages as a result of it.
Donald Berdeaux, the lead plaintiff, alongside fellow plaintiff Christine Grablis, both made allegations within the First Amended Class Action Complaint. These claims have been made under common law and federal securities laws against the critical operators within OneCoin Ltd. Alongside OneCoin, certain co-conspirators have been implicated, as well, having enabled OneCoin in this massive fraud.
This fraud was done on millions of individual investors, spread globally. Collectively, these investors managed to gain $4 billion in damages through the densely-packed multi-level-market system based on crypto.
Everything In Place
The Court had initially stayed the case, due to waiting for the service of all defendants. Furthermore, the Court mandated monthly letter updates from the Lead Plaintiff in regards to the status of the service of process, warning against missing these deadlines.
The Lead Plaintiff was forced to post proof of service, doing so through a Court-approved alternative means for Ruja Ignatova on the 3rd of February, 2020. Furthermore, the Lead Plaintiff voluntarily dismissed Sebastian Greenwood and Irina Dilinska from the case on the 28th of February, 2020.