A class-action lawsuit has been filed against the Bank of New York Mellon for its involvement in the $4 billion Ponzi scheme OneCoin.
As per the filing, BNY Mellon played an important role in that Ponzi scheme.
BNY Mellon Helped Onecoin In Defrauding Investors
OneCoin investors Donald Berdeaux and Christine Grablis, while filing a lawsuit, mentioned that the oldest bank of America .i.e., BNY Mellon, turned blind towards this Ponzi scheme and it even laundered $300 million for this.
The investors have also filed the case against the founder of this OneCoin Ponzi scheme, Ruja Ignatova. But it is to be noted that since the year 2017, when the agencies started their investigation into this matter, Ignatova has been missing.
Notably, the plaintiffs in their filing have stated that in May 2016, BNY Mellon was processing OneCoin payments through its platform. In December 2016, the banking platform itself suggested it could be a Ponzi Scheme but it still did not register a suspicious activity report (SAR) with the Financial Crimes Enforcement Network (FinCEN) and that too till February 2017.
The filing submitted by the plaintiffs further stated, “Accordingly, BNY Mellon knowingly participated in, or was complicit in, laundering OneCoin’s criminal proceeds.”
SAR Not Filed With FinCEN
The plaintiffs, in their filing, have alleged that the oldest bank of America supported and helped OneCoin Ponzi scheme in misleading the customers.
While commenting on the accusations, the plaintiffs have put on BYN Mellon, the spokesperson of BYN Mellon stated, at that time the bank’s role was to protect the global financial system’s integrity seriously.
However, it denied commenting on why it does not file SAR in the past year.
It has been reported that in the year 2016, around $30 million funds have been transferred from the British Virgin Islands-baed company account to BNY Mellon’s account. However, later those wired funds had been further transferred to an account that belonged to Hong Kong.
Although the transferred money was credited as a loan for purchasing oilfield, the company never repaid it.
In fact, the authorities in their email have stated that the company never repaid the loan and the founder of OneCoin withdrew $10 million from that account.