The OneCoin saga is one of the most famous crypto exit scams of all time as millions of dollars of customer funds were stolen when the companies shut down most of its operations. Since this took place, one of its founders has been charged by US court and the other founder is still on the run even as her lawyer has been charged for helping her launder hundreds of millions of dollars of customer funds. While the company has finally ceased all forms of operations, the lawsuits against them continue to rage on in what is now an infamous saga.
It seems the saga is going to continue as the New York Southern District Court recently granted continuance for the lawsuit brought against David Pike for his alleged connection to the OneCoin scam.
The continuation documents were filed on December 20, 2019, and are valid open till January 12, 2020. According to Assistant United States Attorney Nicholas Folly, there are discussions being held among the various counsels about a pre-indictment deposition and that this is appropriate considering the extension of the case and that further discussions are still ongoing.
Pike’s role in the scam was that he was the Chief Operating Officer of the private equity firm that went by the name of Fenero Funds and was allegedly the firm employed by OneCoin to launder the millions of dollars they had stolen from customers. Besides his role in the money laundering, Pike is also being accused of lying to the FBI, the IRS Criminal Investigation Division and the United States Attorney’s Office for the Southern District of New York representatives.
Pike’s argument is that he was unaware that the $400 million that was given to the fund from OneCoin was obtained illegally. It should be noted that as of the time it was closed down, Onecoin had raised roughly $4 billion in what is one of the largest exit scams in crypto history.