OneCoin

What Is OneCoin?

OneCoin was a cryptocurrency-based Ponzi scheme. The companies behind the scheme were OneCoin Ltd. also, OneLife Network Ltd., founded by Bulgarian national Ruja Ignatova, who disappeared in 2017. Be that as it may, not before the scheme raised $4 billion.

• OneCoin was a Ponzi scheme that pulled in $4 billion from 2014 to 2016.
• OneCoin was not actively traded, nor might the coins at some point be utilized to purchase anything.
• Its founder, Ruja Ignatova, has disappeared and fellow benefactor Sebastian Greenwood is in prison in the U.S.
• The company's principal business was selling course materials, which were allegedly appropriated as a rule.
• Its course material business model was much the same as a staggered marketing (MLM) scheme, where course material purchasers were paid to enroll new purchasers.

Understanding OneCoin

Ruja Ignatova began OneCoin in 2014, claiming it worked just like some other cryptocurrency. The claim was that OneCoins could be mined (with 120 billion coins available) and used to make payments, even having an e-wallet. Be that as it may, there was no OneCoin blockchain model or payment system.

The company sold educational materials, like courses on cryptocurrencies. This was viewed as its fundamental business. The courses included different areas too, like trading and investing. The courses were part of a [multi-level marketing](/staggered marketing) (MLM) scheme, where purchasers were offered rewards for getting more participants.

Purchasers of the course packages were to receive tokens that could be utilized to mine OneCoins. A large part of the course material offered was supposed to be copied.

OneCoin Exchange

The exchange for changing over OneCoin into different currencies was the OneCoin Exchange xcoinx, which was an internal marketplace. Individuals had the option to access the exchange assuming that they bought something beyond the beginner package.

Selling limits were put on the accounts in light of the level of education package purchased. In January 2017, the exchange was closed down. Leading up to the shutdown, OneCoin kept the majority from getting withdrawal demands. The exchange was the main way for partners to cash out.

OneCoin as a Fraud

In 2016, questions began to come up around OneCoin as numerous countries investigated the company, with some calling it a pyramid scheme. The Direct Selling Association in Norway previously called the OneCoin fraud a pyramid scheme in March 2016. Soon thereafter (in December 2016), the Hungarian Central Bank cautioned against OneCoin being a pyramid scheme.

In 2017, OneCoin claimed it was the principal company to become licensed by the Vietnamese government and legally permitted to be utilized as a digital currency. The Vietnam government countered the claim.

In mid 2018, the Bulgarian police assaulted the company's office. Founder Ruja disappeared in 2017 when a warrant was petitioned for her capture. Her sibling, Konstantin Ignatov, supplanted her as the face and manager of the company. Fellow benefactor Greenwood was captured in 2018 and Konstantin was captured in November 2019.

Konstantin confessed to fraud and money laundering. Greenwood is in discussion with specialists about a potential request deal. OneCoin was rarely actively traded, nor might the coins at any point be utilized to purchase anything.

FAQ

The amount Is One Bitcoin Worth?

The price of Bitcoin fluctuates, yet as of June 2022, was trading at $27,333. The price has varied between generally $27,000 and $67,500 over the 12 months between June 2021 and June 2022.

Has Ruja Ignatova Ever Been Found?

Ruja Ignatova, the Bulgarian founder of OneCoin, known as Cryptoqueen, has not resurfaced since crawling under a rock in 2017.

What Are the Biggest Crypto Ponzi Schemes?

There have been a number of other big Ponzi schemes notwithstanding OneCoin, the biggest crypto scheme of all time. Bitconnect was uncovered in 2018, eventually crashing and making its investors lose $3.5 billion. PlusToken defrauded investors until 2019, when it was closed down, in the wake of costing investors more than $3 billion. GainBitcoin was an India-based coin that denied investors of more than $300 million before it closed down. Mining Max misled investors out of $250 million until specialists shut it down in 2021.