/shutterstock373543888vc-5bfc2b2dc9e77c005143e0d5.jpg "OneCoin 1")
What Is OneCoin?
OneCoin was a cryptocurrency-based Ponzi scheme. The businesses behind the scheme had been OneCoin Ltd. and OneLife Community Ltd., based by Bulgarian nationwide Ruja Ignatova, who disappeared in 2017. Nonetheless, not earlier than the scheme raised $4 billion.
- OneCoin was a Ponzi scheme that pulled in $4 billion from 2014 to 2016.
- OneCoin was not actively traded, nor might the cash be used to buy something.
- Its founder, Ruja Ignatova, has disappeared and co-founder Sebastian Greenwood is in jail within the U.S.
- The corporate’s foremost enterprise was promoting course supplies, which had been reportedly plagiarized usually.
- Its course materials enterprise mannequin was akin to a multi-level advertising and marketing (MLM) scheme, the place course materials consumers had been paid to recruit new consumers.
Understanding OneCoin
Ruja Ignatova began OneCoin in 2014, claiming it labored similar to some other cryptocurrency. The declare was that OneCoins might be mined (with 120 billion cash out there) and used to make funds, even having an e-wallet. Nonetheless, there was no OneCoin blockchain mannequin or fee system.
The corporate did promote academic supplies, akin to programs on cryptocurrencies. This was thought of its foremost enterprise. The programs included different areas as effectively, akin to buying and selling and investing. The programs had been a part of a multi-level advertising and marketing (MLM) scheme, the place consumers had been supplied rewards for bringing in additional members.
Patrons of the course packages had been to obtain tokens that might be used to mine OneCoins. A lot of the course materials supplied was stated to be plagiarized.
OneCoin Trade
The alternate for changing OneCoin into different currencies was the OneCoin Trade xcoinx, which was an inner market. Members had been in a position to entry the alternate in the event that they purchased extra than simply the newbie bundle.
Promoting limits had been positioned on the accounts based mostly on the extent of training bundle bought. In January 2017, the alternate was shut down. Main as much as the shutdown, OneCoin denied nearly all of withdrawal requests. The alternate was the one approach for associates to money out.
OneCoin as a Fraud
In 2016, questions began to come back up about OneCoin as many nations started to research the corporate, with some calling it a pyramid scheme. The Direct Promoting Affiliation in Norway first referred to as the OneCoin fraud a pyramid scheme in March 2016. Later that 12 months (in December 2016), the Hungarian Central Financial institution warned in opposition to OneCoin being a pyramid scheme.
In 2017, OneCoin claimed it was the primary firm to grow to be licensed by the Vietnamese authorities and legally allowed for use as a digital foreign money. The Vietnam authorities rebutted the declare.
In early 2018, the Bulgarian police raided the corporate’s workplace. Founder Ruja disappeared in 2017 when a warrant was filed for her arrest. Her brother, Konstantin Ignatov, changed her because the face and supervisor of the corporate. Co-founder Greenwood was arrested in 2018 and Konstantin was arrested in November 2019.
Konstantin pleaded responsible to fraud and cash laundering. Greenwood is in dialogue with authorities a few attainable plea deal. OneCoin was by no means actively traded, nor might the cash be used to buy something.