The day is finally here. One of the leaders of OneCoin was arrested last week whilst trying to board a plane in Los Angeles. US Prosecutors allege that OneCoin is not a Cryptocurrency but in fact a scam pyramid scheme. OneCoin is a cryptocurrency scam. Konstantin Ignatov, the alleged leader of OneCoin has been arrested on a wire fraud conspiracy charge. Ruja Ignatova is currently wanted and has been indicted for money laundering, and wire and securities fraud.
The way it worked is that the company would give people lucrative amounts of commission if they persuaded gullible individuals to Invest in the OneCoin cryptocurrency. The founders promised its investors the coin will make them “filthy rich”. On the face of it, this was a multi-level marketing (MLM) scheme, but behind the involved individuals had sinister motives.
OneCoin, a company based in a Bulgaria, claims it has over 3 million members spread across the globe. In a government press release, Manhattan attorney Geoffrey Berman says that OneCoin created a multibillion-dollar company “based completely on lies and deceit.”
According to the Prosecutors, the company leaders lied to investors and were able to falsely increase the value of OneCoin from half a euro ($0.56) to almost 30 euros ($33.65). This is of January 2019. During an Investigation into the workings of OneCoin, US authorities uncovered that no public digital ledger could be found to verify any of the Crypto transactions claimed by OneCoin.
In reality, the leaders of the project emailed each other saying that they planned to “take the money and run and blame someone else for this.”
This scheme is not new to controversy. They have been Investigated for fraudulent activity in various countries, including in the UK, Germany, Finland, India, China, and Bulgaria. Authorities in other countries have warned potential Investors as noted by CoinDesk. Many authorities have warned about its behaviors and even attempted to halt the company’s operations.
There have been many casualties that have seen their life savings disappear at the say-so of Individuals involved in this scheme. These Individuals have been pushing their own money making agenda, under the cloak of OneCoin. If you have been a victim then please email [email protected] and let's bring these people to justice.