Beware: OneCoin luring Indians by selling tokens for cryptocurrency
Moneylife Digital Team 09 September 2016
Just last week, Sanjay Saxena, the Joint Commissioner of Police at Mumbai told a packed audience at a Moneylife Foundation seminar that if you have lost money to a get-rich-quick scheme, then the only thing to blame is your greed as basic human nature and weaknesses does not change. Despite the fiasco of BitCoin and several other cryptocurrencies, one more virtual cryptocoin OneCoin is being aggressively marketed in India under the pretext of selling educational material and ‘once in a lifetime opportunity’.
 
According to information received from sources, several intelligent and influential people involved in this 'business' are approaching others under the pretext of offering 'future of payments'. Authorities from many countries like Bulgaria, Finland, Sweden, Norway and Latvia have warned citizens of potential risks involved in business like OneCoin.
 
OneCoin is marketed as a virtual cryptocoin, based on cryptocurrencies, but without an actual public and transparent blockchain. This is promoted by OneCoin Ltd, an offshore Gibraltar company led by Bulgarian Ruja Ignatova. As usual with several multilevel marketing (MLM) and money circulation operators, OneCoin also says it does not sell any cryptocoin but education material for trading. Members buy educational packages ranging from 100 euros to 25,000 euros and each package includes tokens, which can be assigned to "mine" OneCoins. 
 
According to Wikipedia, OneCoin is said to be mined by servers at two sites in Bulgaria and one site in Hong Kong. In a typical OneCoin recruiting meeting most of the time recruiters talk about investing in cryptocurrency and the educational material is barely even mentioned.
 
Talking about the hype and commotion around OneCoin, a report from UK-based Mirror says, "The audience was tempted with a Special Combo Package. You get 506,000 tokens, and six splits turn them into 32 million tokens. The cost was roughly £28,000 and those splits would turn that into £1.2million. And that’s also even if OneCoin doesn’t increase in value – that financial miracle again."
 
"OneCoin members even have a little sign they make to each other, holding their thumb and forefinger to make a circle. Maybe it’s meant to symbolise a coin. It certainly added to the feeling that this was more of a cult than a sound financial institution. To me the sign looked like the number zero – which happens to be the amount I would invest," the report by Andrew Penman says.
 
Earlier in July, Financial Services and Markets Authority (FSMA) from Bulgaria issued a warning about OneCoin stating that OneCoin has not received any form of recognition whatsoever from the Authority. "The same is true of the persons who are promoting OneCoin. They do not hold any authorisation or any other form of recognition from the FSMA," the Bulgarian Authority added.
 
In an article, Insidebitcoins.com says OneCoin is raising a lot of questions and providing next to no answers. "And the answers we can deduct point to OneCoin being a major MLM scheme are an attempt to lure in people with the words 'cryptocurrency' and 'Bitcoin'. All the while having nothing to do with either, by the looks of it. Use this website at your own risk," it concludes.
Comments
Nikita Maharjan
5 years ago
My mind says one thing n heart says one thing ,its worldwide so my mind says that invest n get success but heart says that it is not sure it so dont waste ur money i cant able to follow this truth . It is not directly told us by company itself we are lead by personal means we r invest by the help of those person who know about one coin but we dont know that is really onecoin cryptocurrency is in our country? Or people got chanses to flaud to us ? Im just confused...
ASHVIN SHRIMANT BIRADAR
5 years ago
I am not sure about one coin crypto currency,so need a help about to understand this matter
Muhammad Tauseef Ashiq
6 years ago
Being Invester of one coin, I have not noticed any fraudulent behaviour, the founder of one coin Dr.Ruja is herself devoted to more success this cryptocurrency. Few rumours are expected to prove this un_legitimate crypto currency. people's did Rumours same it is about Bitcoin coin.
Sanj
Replied to Muhammad Tauseef Ashiq comment 6 years ago
You sound like you have a vested interest. Usually when one is being cheated one doesn't expect the cheater to put a board on his or her forehead that he/she is a cheater!
Tim Tayshun
6 years ago
https://news.bitcoin.com/beware-definitive-onecoin-ponzi/#comments

Please read my very in depth, heavily researched and well referenced investigative report on the OneCoin scam and the history of its scammer founders and co-conspirators.

Not cited in that report is the fact that Onecoin CEO, Ruja Ignatova was convicted of fraud for embezzling money from her own employees and suppliers, as well as fraudulent accounting practices aimed at fraudulently bankrupting the company. She plead guilty to 24 counts of fraud this March in German court and was issued a suspended sentenced of 14 months probation and ordered to pay restitution for her theft to the Waltenhofen Gusswerks victims and suppliers she employed.
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