Worse than BitConnect? Leader of Billion Dollar Cryptocurrency Pyramid Scam “OneCoin” Arrested | CryptoSlate

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Why cryptocurrency is not getting accepted by all countries? Why they are taking more time in making rules for crypto industry?

The reason is in front of you. When a crypto boss scams millions of members and earned billions, investors definitely won’t believe them and their company. And so a country needs to make rules for cryptocurrency. 

If a country doesn’t have crypto rules, their citizens would be scammed by crypto expert like the leader of OneCoin Ltd. who was taken in police custody on March, 6th. They allegedly scammed 3 million members of his company OneCoin and collected revenue over €3.3 billion by doing fake sales. 

Investigators found OneCoin was a Ponzi scheme based on multi-level marketing network. The members of OneCoin received commission for recruiting other members who bought “educational materials” which brought some OneCoin for them. According to OneCoin Ltd., investors should have earned five to ten-fold returns on the amount they invested in the company.    

“As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based completely on lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich.”

Like Bitcoin, OneCoin Ltd. claimed that OneCoins are mined with served maintained and operated by the company and that OneCoin’s price is based on market supply and demand.

Yet, investigations by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI) revealed that OneCoin was, in fact, a fraudulent pyramid scheme that did not use blockchain at all. As stated by FBI assistant director-in-charge, William Sweeney, Jr:

“Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators.”


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It's a shame that these guys are able to steal from so many, who will never get their money back. Bitconnect was a huge disaster for millions, who were never reimbursed.

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