What is a OneCoin?

OneCoin was a Ponzi scheme based on cryptocurrency. OneCoin Ltd. and OneLife Network Ltd. were both formed by Bulgarian native Ruja Ignatova, who vanished in 2017; however, not before raising $4 billion for the programme.

Ruja Ignatova founded OneCoin in 2014, stating that it functioned similarly to other cryptocurrencies. OneCoins could be mined (with an availability of 120 billion coins) and used to make payments via an e-wallet. The OneCoin blockchain model and payment system, on the other hand, did not exist in reality.

OneCoin Exchange

The OneCoin Exchange xcoinx, an internal marketplace, was the exchange for converting OneCoin into other currencies. Members who purchased more than the starter package could use the exchange.

OneCoin released an internal message on March 1, 2016, without warning, stating that the Market would be down for two weeks for maintenance, citing the huge number of miners and the need for "improved interaction with the blockchain." The market reopened on March 15, 2016, although there were no noticeable changes; most transactions expired as they had before, and daily limitations remained in place. In January 2017, the exchange was abruptly shut down, while individuals associated with the fraud continued to collect funds.

Accounts were given selling limits based on the degree of education package purchased. The exchange was shut down in January 2017. OneCoin declined the bulk of withdrawal requests before the collapse. Affiliates could only cash out through the exchange.

OneCoin Exchange 2021

An ongoing trial in the United States has found the corporation OneCoin, Ruja Ignatova, and Gilbert Armenta in Default. The US Attorney's Office agreed to sell Mark S. Scott's residence in Cape COD.

Ignatova has been tied to terrorism sponsorship. The Kuwaiti Interior Ministry informed Saudi officials that she was a terrorist sponsor, and the Saudis believed them.

OneCoin News

In 2016, concerns about OneCoin arose as numerous governments began to probe the company, with some accusing it of being a pyramid scheme. In March 2016, the Norwegian Direct Selling Association branded the OneCoin scam a pyramid scheme for the first time. In December of the same year, the Hungarian Central Bank issued a warning about OneCoin being a pyramid scheme. In 2017, OneCoin claimed to be the first firm to be granted a licence by the Vietnamese government, allowing it to legally operate as a digital currency. The Vietnamese authorities refuted the assertion.

Bulgarian police searched the company's office in early 2018. Ruja vanished in 2017 after a warrant for her arrest was issued. Konstantin Ignatov, her brother, took over as the company's face and manager. Greenwood, a co-founder, was detained in 2018, and Konstantin was arrested further. Konstantin pleaded guilty to money laundering and fraud. Authorities are in talks with Greenwood regarding a possible plea deal. OneCoin was never actively traded, and the coins could never be used to buy anything.

One Coin Course Offering

The firm did sell educational resources, such as cryptocurrency classes. This was considered the company's primary business. Other topics covered in the classes included Investing and trading.

The courses were all a significant part of a multi-level marketing plan in which purchasers were rewarded for recruiting more people. Course package buyers were supposed to get tokens that could be used to mine OneCoins. It was claimed that much of the course material was plagiarised.

Conclusion

From 2014 until 2016, OneCoin was indeed a Ponzi scheme that made $4 billion. OneCoin was not regularly traded, and the coins could not be used to buy anything. Ruja Ignatova, the company's creator, has vanished, while Sebastian Greenwood, a co-founder, is imprisoned in the United States.