A federal judge in New York has cleared the path for the OneCoin class-action lawsuit to resume, rejecting requests from two defendants to halt proceedings. The court's decision on May 1st followed arguments that a prerequisite for delaying the case, namely serving all outstanding defendants, had been met. Both plaintiffs and defendants presented their stances in a joint letter filed April 28th.
Mark Scott and David Pike, individuals implicated in OneCoin's money laundering activities, had argued for a pause until their criminal cases were resolved. Scott, convicted of fraud in November, is awaiting sentencing on July 14th, with potential delays for medical reasons. Pike is cooperating with the Department of Justice and is expected to enter a guilty plea. The judge, however, did not concur. Following a May 1st hearing, the court immediately lifted the stay, allowing the civil case to proceed against Scott and Pike's wishes.
Nicole Huesmann, a Florida attorney accused of assisting Scott in laundering OneCoin funds through Mumbelli Group, employed a different defense. She challenged the New York court's jurisdiction over her. Huesmann did not formally state a position on the stay itself, a maneuver to avoid conceding the court's authority. Konstantin Ignatov, who led OneCoin under his sister Ruja Ignatova's shadow, did not oppose continuing the stay but was similarly overruled.
The court has now given the plaintiffs until May 8th to propose a schedule for advancing the lawsuit. OneCoin, the fraudulent cryptocurrency scheme that cost investors billions, has already seen several executives face the criminal justice system. The civil litigation is now accelerating on a parallel track, enabling victims to seek damages through the courts while criminal proceedings unfold.