As far ascryptocurrencyscamsgo, OneCoin is probably the one that rules them all.
US prosecutors have alleged that thePonzi schemeraked inapproximately $4 billion, defraudinginvestorsfrom all over theglobe.
InChinaalone,law enforcementagentsrecovered 1.7 billion yuan(US$267.5 million) and prosecuted 98 people.
Dr Ruja Ignatova, thescams spearhead, has been missing since 2017.
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Sebastian Greenwood, herco-founder, wasextradited from Thailand to the USfollowing anoperationinvolving theFBIin November 2018.
It claimed to work like any othercryptocurrencywhosecoinsare generated through mining and can then be used to make globalpayments.
Organizers sold educational materials, including promotional and discounted packages, to data pipe participants.
Educational courses includedcryptocurrencies,trading, investments, financialanalysis, and asset management.
Userswere expected to pay for theseprograms.
In true multi-level-marketing style, participants were also enticed with referralrewardsto urge moreusersto join.
Several reports also suggest OneCoinwas aPonzi schemeand its facing legalactionin several nations around theglobe.
An explainer video uploaded to itsYouTubechannel, claims it was a safe platform forinnovationthatwillchange the financial system.
It was also claimed that thecryptocurrencyadhered to Know-Your-Customer (KYC) rules to prevent money laundering.
Additionally, the video alleges OneCoin was the firstcryptocurrencywith a monthlyauditof itsblockchain.
Aspreviously reported by Hard Fork, OneCoins werent actually mined using computer resources.
Whos Dr Ruja Ignatova
Ignatova toldpeopleshe had created acryptocurrencyto rivalBitcoin, persuading them to invest billions.
In two years, nobody will speak aboutBitcoinany more!
A long-promisedexchange, which would allowuserstotradeOneCoin intofiat, was constantly delayed.
Organizers were due to abate concerns at an event in Lisbon, but Ignatova never showed up.
According toFBIrecords, Ignatova is thought to haveboarded a Ryanair flightfrom Sofia to Athens on October 25, 2016.
Shes been incommunicative since.
She is charged withsecuritiesfraud,wire fraud, and money laundering.
For this reason, he may be given a newidentityunder theUSwitness protection program.
They have so far been unsuccessful.
Hislawyersmaintain that he was unaware that OneCoinscryptocurrencywas worthless, and claim he was simply following Ignatovasorders.
These claims were rejected by a federaljuryinManhattan, followinga three-week trial.
