OneCoin Scam – What Really Happened to One Coin?

One Coin was advertised as a new altcoin with much higher potential than Bitcoin. Cryptocurrency markets are volatile, and people often look for the next big thing. The perpetrator behind OneCoin is a lady named Ruja Ignatova. She made millions of people buy into her vision, and her talk shows were always hits.

While everything seemed picture-perfect initially, things went south as the project progressed. Like every other Ponzi scheme, this one also made many bold claims. However, in reality, there was nothing about the way it worked that can be termed sustainable.

While it did have a few good days, the scheme collapsed and took billions of dollars with it. The following paragraphs explain how this hustle worked and how it tricked the public. If you need help with crypto recovery of any kind, get in touch with us via the contact form.

One Coin Scam (OneCoin)

What is One Coin?

One Coin was nothing more than a Ponzi scam. The fraud, launched in 2014 by Ruja Ignatova, the self-proclaimed “cryptoqueen,” 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 integral to 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.

How did the OneCoin 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 currency. Among her further pledges were the provision of an e-wallet, the mining of currencies, and the facilitation of transactions and transfers. She also promised that those who embraced the digital revolution would have access to easy, quick, and secure financial services.

She presented the currency as the most effective means of removing selfish financial organizations from the current payment system. Because cryptocurrencies remove the need for intermediaries and provide a network for transactions that cannot be trusted, this digital currency has become 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 because they anticipated its value would rise in parallel with consumer demand.

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    When this currency assumed a pyramidal form, it displayed characteristics of a Ponzi scheme. Instead of 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 created the firm for two years before 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 revealed to be the OneCoin scam.

    One Coin Investigations

    According to the U.S. Department of Justice, Ignatova’s deceptive claims were successful. Between 2014 and 2016, the firm made $2.51 billion and sold $3.77 billion. It utilized the funds to reward the investors and conceal its genuine goals until it accomplished 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; the FBI apprehended both.

    It should not be surprising that the company has refuted assertions that it is not an operating digital payment system.

    Update – November 2023

    The guilty plea of Irina Dilkinska, the so-called “Head of Legal and Compliance” for the OneCoin cryptocurrency pyramid scheme, marks a significant development in the ongoing investigation into one of the largest financial frauds in recent history. Dilkinska’s admission of her role in facilitating the laundering of millions of dollars from the scheme adds another layer of accountability to the OneCoin scandal. Her involvement highlights how the organization’s upper echelons were complicit in orchestrating this massive fraud.

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    This latest development in the OneCoin case underscores the complex nature of cryptocurrency frauds and their challenges to legal and financial systems worldwide. It also warns about the potential for abuse within the burgeoning field of digital currencies. The case against OneCoin sheds light on the intricate web of deceit spun by its founders and the vulnerabilities in the global financial system that allowed such a scheme to proliferate.

    As the prosecution continues and more details emerge, it becomes increasingly clear how OneCoin, under the guise of a revolutionary cryptocurrency, was able to deceive millions of investors globally. The guilty plea of a key figure like Dilkinska, who was entrusted with ensuring legal compliance but instead facilitated the scheme’s illicit activities, is critical in unraveling the full extent of this deception and bringing all responsible parties to justice.

    Update – April 2024

    Irina Dilkinska, identified as the “Head of Legal and Compliance” for the cryptocurrency pyramid scheme OneCoin, was sentenced to four years in prison for her involvement in the fraudulent operation. Starting in 2014, OneCoin, based in Sofia, Bulgaria, falsely marketed itself as a legitimate cryptocurrency through a global multi-level marketing network, deceiving investors into contributing over $4 billion. Dilkinska, who pleaded guilty to conspiracy to commit wire fraud and money laundering, was instrumental in managing OneCoin’s operations and laundering significant amounts of money.

    OneCoin Review Conclusion

    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 you can afford to lose.

    More importantly, do your own research and talk with a licensed financial planner before making any moves. At the end of the day, investing is all about doing solid research, finding an edge, and having discipline. 

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