OneCoin Founders Indicted Over Multi-Billion Pyramid Scheme

Crypto News | Latest News

One of the biggest challenges in the cryptocurrency sector is that the nature of transactions has been very convenient for scammers and fraudsters, hackers and even used as a way to fund terrorism due to the untraceable nature of transactions, and the fact that a lot of people do not really take the time to understand how the technology behind the transactions work. The rise of Bitcoin and cryptocurrency inspired thousands of copycats and of course, the bulk of them were not there for good reason. The latest in this mess is Onecoin, whose leaders were indicted by American courts over a well-planned out Ponzi scheme two weeks ago.

History

From the jump, Onecoin raised eyebrows in the crypto community and it was only a matter of time before the speculation surrounding its frivolous operations imploded. With the crypto, its glamorous advertisements and marketing campaign is exactly what exposed it eventually. The company was founded in 2014 by Ruja Ignatova, a Bulgarian entrepreneur; and raised a staggering $3.8 billion dollars in revenue by 2016, which raised the value of Onecoin from 50Euro cents to 29.95 Euros.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

Fast forward to 2017 and Ruja announced the company’s plan to list OneCoin on the Asian stock exchange, which raised eyebrows as of the speed at which the crypto startup was moving, especially because it was as yet not so popular. Ms. Ignatova further explained that current holders of Onecoin would expect certificates known as OFCs that could be converted into shares into the company at a future date, when the company became publicly traded. As if that was not enough, she actually promised current holders that the company would soon be offering double! Yes, double the number of exchangeable certificates for the number of Onecoins held. Like I said, the crypto was hugely overrated and glitz was all in the advertising.

None of these grandiose promises were delivered however, and they tried to cover their tracks with a nonsensical new notion of a coin split and the launch of a new, ‘improved blockchain’. In real sense, the company had attempted to hire a Norwegian blockchain development company without informing investors. The developer, Bjorn Bjercke was not even given full information but was offered a high salary to develop blockchain software and that OneCoin wanted him to turn their SQL servers into a blockchain. And he immediately recognized it was a scam as its impossible to run a decentralized program on SQL servers.

Thankfully, Bjorn set out to let everyone know that Onecoin did not even possess a blockchain to begin with and all investors and potential investors should immediately lay off the cryptocurrency. By that time, Onecoin had over three million users worldwide who had no idea that it had no real value and they had no way of tracing their investments. What was tragic was like I mentioned earlier, their glittering advertisement easily hooked money crazed clueless individuals to invest in a dream as nothing ever existed. The company just operated as a marketing agenda, promising current users rewards if they brought in more users to purchase their cryptocurrency packages.

 

Current

Manhattan U.S Attorney Geoffrey Bernman released a statement two weeks ago stating that the founders of the company, Ms. Ruja and her brother were well aware of their intentions by selling smoking mirrors and deceit. This is after the head of the scheme Konstantin Ignatov, Ms. Ruja’s brother, was arrested at Los Angeles by U.S officials. Both of them are charged with wire fraud and conspiracy to commit fraud.

Onecoin was actually slotted as number one Ponzi scheme last year in a list of the top five worst scamming ICOs. At the time of that post, the project was still available to invest in even though it was deemed as a bad idea in cryptocurrency circles. I guess if it’s too good to be true, then stay the hell away from it.

 

 

 

 

 

Leave a Comment

Latest Crypto News

Let’s Talk About LawCoin

ConsenSys Ventures had earlier on April 1st released a press release concerning several blockchain start-up projects they intended to back for the year 2019, through their accelerator program Tachyon; which was launched in Berlin at

The Cryptocurrency Wash Trading Problem

On the first of May, CoinMarketCap announced that all the exchanges that will not provide mandatory data by June 2019 will be promptly removed from their calculations. The cryptocurrency data provider stated that the reason

Winklevoss Brothers Settle Lawsuit with Charlie Shrem

Tyler and Cameron Winklevoss have reached a settlement against their fellow Bitcoin entrepreneur Charlie Shrem, where the court, having been informed of the settlement between the parties, under the direction of Judge Jed Rakoff, dismissed

IBM Launches Blockchain Based Payment Using Stellar

Last month, an IBM executive hinted at the company launching a cross border payment system in partnership with Stellar (XLM) coin. Jesse Lund, said that the program would allow payments from anywhere in the world,

Marc Faber Buys Bitcoin for the First Time

Thailand based Swiss Investor, Marc Faber bought his first Bitcoin after admitting that he was very wrong about cryptocurrencies and blockchain technology. His premier interest of investment is emerging and frontier markets. One of the

Sponsored: The Aerum ecosystem, a market-oriented hub

                  The Aerum ecosystem offers a decentralized hub The Aerum ecosystem is presented to the crypto sector with a platform for the disruption of the sector. In itself, it resembles the increasingly common Hubs. A

Thai Approves its First ICO Portal

Late last year, Rapee Sucharitakul, secretary general of Thailand’s Securities and Exchange Commission revealed in a statement to local press that plans were underway to launch one ICO portal by the end of November and

SEC Declares Ethereum Not a Security

The news that the US SEC deemed Ethereum not a security is not surprising at all. Some may ask why this is so despite the fact that Ethereum is the best performing cryptocurrency with a

Crypto Updates

Fidelity Digital Launches Digital Assets Trading Fidelity Investments has been making plans to roll out a crypto asset platform to include trading for the top cryptocurrencies. In October, the company had said that it would

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$4,031.33
-0.11%
2
Ethereum
Ethereum
$139.63
-0.69%
3
XRP
XRP
$0.3148
-1.02%
6
Bitcoin Cash
Bitcoin Cash
$161.00
2.12%
4
Litecoin
Litecoin
$60.358
-1.88%
11
Cardano
Cardano
$0.050421
0.05%
7
Stellar
Stellar
$0.1172
7.27%
17
NEO
NEO
$9.236
-0.87%
5
EOS
EOS
$3.748
-1.09%
14
IOTA
IOTA
$0.2956
-1.34%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK