OneCoin scam is the one of the largest Cryptocurrency scam till date. Among all the scams that have taken place this one is the largest when it comes to number of people affected and also when it came to the magnitude of money that was involved. Prosecutors from the United States have alleged that the Ponzi scheme have affected investors from all over the world to the tune of $4 Billion. In China, the law enforcement have recovered more than 1.7 Billion Yuan which is equivalent to US $ 268 million and have also arrested 98 people.
The mastermind of the scam Dr Ruja Ignatova has been missing since 2017.She was the main culprit who carried out the operation of defrauding investors worth billions of dollars. There was also another partner that helped the mastermind carry out the fraud. Her name is Sebastian Greenwood who also happens to be the cofounder of OneCoin platform. The Federal Bureau of Investigation (FBI) in November arrested the cofounder from Thailand and brought him back to the United States. Ruja Ignatova the creator of the Cryptocurrency is a Bulgarian national. She by profession is a law graduate. Surprisingly to the amazement she also worked for the famous consulting firm Mackinsey.
The OneCoin platform claimed to have worked very similar to any other Cryptocurrency. The coins being generated were through mining and could be used to make global payments. The coin also came with a wallet system that could fit in coins worth 120 billion on its OneCoin network. Organizers sold educational materials including promotional and discounted packages, to network participants. Educational courses included a detailed study on the Cryptocurrency, it various types, its investment strategies and also its financial analysis. It was a scheme that attracted users and other interested participants to join and sign up for this program.
Image Source: www.leaprate.com
The company used marketing to its fullest potential as participants were enticed with referral rewards to urge more users to join. To frame it more simple way each individual who helped bring in new participant into the platform was rewarded on a cash basis or in a proper reward basis. OneCoin coin according to various official reports is a fraudulent scheme whose sole purpose was to defraud investors and users. It is facing legal actions in various countries as the mastermind is on the run and other partner is being extradited to the United States.
The coins were obtained via mining and OneCoin operated as a centralized node where the administrators took care of all the other technical details. It also had a proper channel by which the platform could reach to its audience. The platform used the Ypo Tube Channel to spread out the message. The video that was uploaded by the platform claimed that it was safe for investors and has the potential to change the financial system. They also claimed that the platform was very unique and innovative and adhered to all the KYC standards so that no one could misuse the platform. Additionally the video that is there is on the platform claimed that the platform was the very first Cryptocurrency which had its books audited monthly basis.
Image Source: news.bitcoin.com
OneCoin in reality did not mine the Cryptocurrency using the computer resources and was also a multilevel marketing network as reported by the law enforcement agency. Their worth was actually manipulated by the administrators who changed the asset value from €0.50 ($0.56) to approximately €29.95($33.68). As of March the administrators had been allocating coins to fake members that actually did not exists at all. This was high manipulation that was being carried out by the organizers. The law enforcement said that the administrators referred to these as fake coins.
Source:The Next Web
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