OneCoin lawyer faces prosecution for 'improper' threats

Claire Gill, the London-based lawyer who represented infamous crypto scammer Ruja Ignatova in 2017, is now being prosecuted for sending “improper” legal threats to victim Jennifer McAdam over YouTube videos discussing the OneCoin scam.

As you may know, Ruja disappeared in 2017 shortly after, and US investigators now accuse her of taking nearly $4 billion by selling fake crypto tokens.

The FBI later placed her on its Ten Most Wanted Fugitives list. One of her co-founders received a 20-year prison sentence after admitting to fraud. Regulators say Gill knew there was a “strong possibility” OneCoin was fraudulent when she targeted Jennifer.

Gill challenges the case

At Thursday’s hearing in London, Claire’s lawyers told the Solicitors Disciplinary Tribunal that the entire case should be removed. They argued she did not have to verify whether claims about Ruja were true before threatening litigation. They also said no lawsuit ever reached a courtroom.

Gill’s lawyers wrote that she “was entitled to proceed on the basis of her instructions from OneCoin that the allegations against them were untrue.” They added that there was nothing “improper or abusive in bringing a defamation claim for the purposes of public relations.”

The tribunal has the power to issue unlimited fines or block her from practicing law.

Just before Gill sent the letter to Jennifer, she wrote to Ruja: “I note the view is that legal action must be initiated to send a clear message that action is being taken, even though the claims are not straightforward.”

Regulators say Jennifer was in a “vulnerable position physically and mentally” when she received Gill’s warning. They added that “the fact that she did not succumb to the threat does not diminish its seriousness.”

The hearing is happening as the UK government works on rules to stop firms from using legal threats to intimidate critics. Deputy Prime Minister David Lammy said he wants to strengthen these efforts. Lawyers for Carter-Ruck said the regulator acted because of political pressure.

Details surface on OneCoin’s reach

Prosecutors said OneCoin made €4 billion ($4.7 billion) in revenue and €2.7 billion in profit between 2014 and 2016 while having no real market value. Co-founder Karl Sebastian Greenwood admitted promoting it as a rival to Bitcoin even though he knew its price was made up by insiders to lure victims into a multi-level marketing scam.

Ruja created OneCoin in 2014 while living in Bulgaria. Prosecutors said she filled stadiums, urging investors to join “the financial revolution” and telling them OneCoin “would transform the life of the unbanked people.”

Prosecutor Christopher Driscoll told the court that she fled to Greece after suspecting the US was watching her. Driscoll added that she has ties to Russia, Greece, and multiple Eastern European countries, as well as the United Arab Emirates. Prosecutor Nicholas Williams said Ruja was “just capitalizing on the frenzied speculation in the early days of cryptocurrency.”

Her brother Konstantin Ignatov was arrested in Los Angeles in March 2019. He later pleaded guilty to fraud and money laundering charges and testified against Mark S. Scott, a lawyer convicted of helping move almost $400 million from OneCoin.

Scott is challenging the verdict, saying there is evidence Konstantin lied in court. Another man, David Pike, pleaded guilty to conspiracy for bank fraud tied to Scott and was given two years probation.

In June 2022, Europol placed Ruja on its most-wanted list and offered a €5,000 reward for information leading to her capture.

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