One Coin was advertised as a new altcoin that has way higher potential than Bitcoin. Cryptocurrency markets are indeed volatile and people are often looking for the next big thing. The perpetrator behind this coin is a lady called Ruja Ignatova. She made millions of people buy into her vision and her talk shows were always a hit.
While everything did seem picture perfect in the start, things went south as the project progressed. Just like every other ponzi scheme out there, this one also made a ton of bold claims. However, in reality, there was nothing about the way it worked that can be termed as sustainable.
While it did have a few good days, the scheme collapsed and took billions of dollars along with it. To know how this hustle worked and the way it tricked the public, go over the following paragraphs. If you need help with crypto recovery of any kind, get in touch with us via the contact form.
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What is One Coin?
One Coin was nothing more than a mere ponzi scam. The fraud, which Ruja Ignatova, the self-proclaimed “cryptoqueen,” launched in 2014, attracted millions of investors over the course of two to three years. The gorgeous Ruja persuaded customers in 175 countries to purchase educational resources and OneCoin tokens via eye-catching introductions and alluring marketing.
She gave them the impression that they would become wealthy and be an integral part of something enormous. Unfortunately, the “something tremendous” was a massive hoax.
OneCoin was touted as a cryptocurrency despite never being supported by a blockchain. It encouraged clients to sell to their friends and family via multi-level marketing. The project ran on its own platform and did not participate in bitcoin exchanges.
Ruja Ignatova disappeared in 2017 as law enforcement agencies throughout the globe cracked down on con artists; she has not been seen since. Later, her brother, who had assumed the position of CEO at OneCoin, was jailed.
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How did the Scam Work?
Ruja Ignatova, a law graduate from Oxford, brought OneCoin to the cryptocurrency market in 2014 with the intention of making it the greatest virtual money. Among her further pledges were the provision of an e-wallet, the mining of currencies, and the facilitation of transactions and transfers. It also promised that those who embraced the digital revolution would have access to financial services that are easy, quick, and secure.
She presented the currency as the most effective means of removing selfish financial organisations from the current payment system. Due to the fact that the notion of cryptocurrencies removes the need for intermediaries and provides a network for transactions that cannot be trusted, this digital currency became the most sought-after digital currency at the moment.
This virtual currency immediately attracted a massive user base spanning six continents and over 195 nations. The investors intended to store the digital currency for an extended period of time because they anticipated that its value would rise in parallel with consumer demand.
When this currency assumed a pyramidal form, it displayed characteristics of a Ponzi scheme. Instead than selling digital currency directly to users, it provided purchase bundles, including instructional resources. The course package purchasers were to get tokens that could be used to mine virtual currency. However, the majority of the given instructional resources were plagiarized, but these tokens protected the purchasers.
Ignatova was the creator of the firm for two years prior to her sudden departure in October 2017. She and Sebastian Greenwood co-founded OneLife Network Ltd. and OneCoin Ltd. As a result, what was once touted as a possible virtual currency was shown to be the OneCoin scam.
One Coin Investigations
According to the U.S. Department of Justice, Ignatova’s deceptive claims were successful. The firm made $2.51 billion and sold $3.77 billion between 2014 and 2016. It utilised the funds to reward the investors in order to conceal its genuine goals until it accomplishes them.
According to the Department, the corporation determines the price of OneCoin independently of market demand. An inquiry revealed that it lacked a proper blockchain for monitoring and logging transactions. In consequence, currency mining became impossible. It suggests that the coins given to members were counterfeit.
Ruja Ignatova’s absence began in Lisbon, Portugal, in October 2017 when she missed a lecture. The majority of individuals assume that important individuals in the financial markets are responsible for her kidnapping or death. In contrast, the FBI report portrays a different scenario.
Nobody has seen the creator of OneCoin since she boarded an aircraft from Sofia, Bulgaria to Athens, Greece on October 25, 2017. In connection with one of the largest Ponzi scams, the FBI detained Greenwood in 2018 and her brother Konstantin Ignatova in November 2019; both were apprehended by the FBI.
It should not come as a surprise that the company has refuted assertions that it is not an operating digital payment system.
There are plenty of cryptocurrency projects nowadays. Whenever you encounter a new coin that promises to solve any issue in a niche or makes get-rich claims, do not let greed affect you. Always take an analytical approach and invest only the amount that you can afford to lose.
More importantly, do your own research and talk with a licensed financial planner before making any kind of moves. At the end of the day, investing is all about doing solid research, finding an edge and having discipline.
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