The US officials arrested a “top leader” of the OneCoin in New York. The company has been accused of setting up an alleged pyramid scheme to steal “billions” from investors. US Arrests Onecoin Leader Due to Public Protests About Credibility.
The U.S. Attorney has indicted Ruja Ignatova and Konstantin Ignatov for the Southern District of New York (SDNY) on two charges of:
-Securities fraud and money laundering
The two swindled financial investors out of “billions of dollars” utilize false cryptographic money. As part of the investigation, Ignatov was captured early last week on wire fraud charges at Los Angeles International Airport.
In a public statement, investigators have asserted that OneCoin is a fraudulent business model: that of a pyramid scheme. Individuals get commissions to enroll different people to the venture. These participants require to buy crypto packages and convince others to do the same. OneCoin professes to have 3 million subscribers around the world at this time.
The public statement discloses that while OneCoin alleges that the company’s servers mine its tokens. Also, its price increase occurs naturally, both of these claims are false.
Ignatova supposedly said in an email that she has an exit strategy from the organization.
SDNY U.S. Lawyer, Geoffrey Berman, said that those arrested built a multibillion-dollar cryptocurrency organization on the foundation of untruths and trickery. He also included that they guaranteed enormous returns and nominal risks:
“but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors victimized while the defendants got rich.”
Another litigant, Mark Scott, captured a year ago in Massachusetts. While Ignatov has been captured, Ignatova is still on the loose. Along with her role in the project, she also has charges to face in India.
Planned Worldwide Strike
Since 2016 officials in various countries have been cautioning or taking action against OneCoin on the comparable fraudulent business model, pyramid scheme, or misrepresentation concerns. The countries include Belgium, the U.K., Uganda, Italy, Nigeria, Germany, India, Hungary, Belize, Vietnam, Austria, Finland, Luxembourg, Bulgaria, China, and Samoa.
Authorities in India have already arrested some of the project’s participants who were promoting OneCoin, while prosecutors in China have charged in excess of 100 people for deceit. In China, several defendants are successfully convicted.
In various countries, they have received fines or cease-and-desist orders. Financial watchdogs in several nations closed payment processors for OneCoin. Regulating authorities also pursued the undertaking’s trading framework.