In China, a two-year investigation into a multi-level, large-scale OneCoin cryptocurrency fraud scheme that spanned 20 provinces of the country has ended.
The total number of suspects during the investigation increased to 98 people. The accused operated within Weika Coin, a “branch” of OneCoin in the Middle Kingdom. The investigation itself was launched in the fall of 2017.
OneCoin became famous for collecting 15 billion yuan (2.3 billion US dollars) from gullible investors. Over the two years of the investigation, the police arrested 119 people. Only a small part of the funds was returned - about 1.7 billion yuan ($266 million) of which have already been restored to accounts. Several participants in the fraudulent scheme have already been sentenced to up to 4 years in prison or fines ranging from $1,500 to $783,000. The scope of the fraudulent scheme allowed about 2 million people to be defrauded. In total, there were 7 mother pyramids operating in China, which attracted participants based on 140 membership levels.
The Chinese investigation is just one episode in a series of legal cases against this altcoin around the world.
The fraudulent scheme, OneCoin, positioned itself as a cryptocurrency and at the same time a trading company from Bulgaria.
However, the use of so-called “One-bonuses” designed to reward successful traders, attracting new investors for a fee, the quality of posted content, the use of public events with rewarding those who distinguished themselves and raising funds - all this points to a financial pyramid. OneCoin's conflicting information and presentation of itself as "a centralized model that monitors the security of its users and enforces anti-money laundering regulations" suggests that OneCoin has nothing to do with cryptocurrency.
OneCoin is not found in analytical articles devoted to promising cryptocurrencies.
It is not represented on any exchange where cryptocurrency pairs are traded.
Since the beginning of 2017, hundreds of branches of all over the world have been under investigation. Most investigations and allegations of illegal activities are ongoing.
In August 2017, The Italian Antimonopoly Committee and the Office for the Protection of Consumer Rights named OneCoin financial pyramid and fined them 2.5 million euros.
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