OneCoin was a Ponzi scheme that was being promoted as a cryptocurrency. This article will discuss, "What Was The OneCoin Scam? What Is OneCoin?" Let's get started.
What Is OneCoin?
OneCoin was a Ponzi scheme based on cryptocurrencies. OneCoin Ltd. and OneLife Network Ltd., formed by Bulgarian national Ruja Ignatova, who vanished in 2017, were the organizations behind the scheme. However, not before the scheme raised $4 billion
What Was The OneCoin Scam?
OneCoin was the subject of investigations in 2016 when many countries started looking into the business, with some branding it a pyramid scheme. The Direct Selling Association in Norway first called the OneCoin fraud a pyramid scheme in March 2016. The Hungarian Central Bank issued a warning about OneCoin being a pyramid scam later that year, in December 2016.
OneCoin asserted in 2017 that it was the first business to obtain a license from the Vietnamese government and be authorized to operate as a digital currency. The Vietnamese government rebutted the claim.
In early 2018, the Bulgarian police raided the company's office. Founder Ruja disappeared in 2017 when a warrant was filed for her arrest. Her brother, Konstantin Ignatov, replaced her as the face and manager of the company. Co-founder Greenwood was arrested in 2018 and Konstantin was arrested in November 2019.
Konstantin pleaded guilty to fraud and money laundering. Greenwood is in discussion with authorities about a possible plea deal. OneCoin was never actively traded, nor could the coins be used to purchase anything.
What Was The OneCoin Scam? What Is OneCoin? - Hopefully, this article can help you to get some knowledge.
