Central Bank Investigating OneCoin Scam

OneCoin makes many promises to get your money.  Here are some of them:

We make it possible for everybody to access and understand the industry of virtual currency and profit through our unique online trading academy.

We offer a high-income opportunity with an extensive bonus program connected to the best lifestyle awards. We offer our traders a one time opportunity to profit from holding the two of the hottest and most innovative products in the emerging crypto-currency market – OneCoins and Aurum Gold Coins, an unique hybrid currency that is backed up by real and solid GOLD.

By joining the One concept, you not only get the best online training on how to profit from crypto-currency, but moreover you position yourself in an unlimited revenue generating program, providing you with all the tools you need to succeed.

There have been many warnings made about the OneCoin scam.  Now the Central Bank of Samoa is Investigating them.

The Governor of the Central Bank of Samoa, Maiava Atalina Ainu’u-Enari, has confirmed an investigation into “One Coin” or “One Life” which uses middlemen to collect people’s money in the hope of gigantic returns.

“You invest $1,000 and then in four months, your cash is 10 times more, which means you cash in $10,000,” she said.

“This is a snare that is used to catch people’s money.”

As of today, the Central Bank of Samoa is looking at other measures to ensure that there are no more victims of this scheme.

“We are currently working proactively to ensure that our people are well informed and well prepared to counter these types of investment schemes,” Atalina said. – Source sobserver.ws

Here is the official central bank warning about OneCoin/OneLife:

In whom do we trust? Do you trust the money (legal tender or paper money and coins) issued by the Central Bank of Samoa (“CBS”)? Or do you trust cryptocurrency investments such as OneCoin or Bitcoin (not legal tender) using middlemen and agents promoting it, which is not regulated by law? CBS has therefore issued a warning over the rising number of cryptocurrency promotions taking place here in Samoa.

It has come to our attention that there are promotions such as Onecoin cryptocurrency that are currently being promoted in Samoa. How it works is that people are encouraged to sign up an account and purchase a package of tokens, these tokens can then be used to invest in a cryptocurrency, as the value of the cryptocurrency goes up, so too will your proposed reward. In essence, you invest in the cryptocurrency and are guaranteed a substantial return on the rewards in a certain period of time.

CBS advises that such a scheme is very very risky and people who invest in it stand to lose their investment. The great risk here is that once these funds are lost then there is a huge possibility that these funds will never be recovered. CBS does not endorse this cryptocurrency venture due to the high risks that it poses to unsuspecting people.

CBS has also confirmed from multiple credible media sources that the founder and main Onecoin headquarters in Bulgaria has been raided by Bulgarian Police as part of a ‘centralised cryptocurrency pyramid scheme’. Onecoin is also banned from countries such as Germany.

Several crypto currency promoters have contacted CBS seeking endorsement for their business and product; however they were not able to satisfy the government’s requirement of providing the relevant information for due diligence purposes (where the Central bank thoroughly scrutinizes a company and its products, if we do not have all the information to make an informed decision. As a result, CBS, on behalf of Government, has refused to endorse such ventures.

CBS, as the Regulator for financial institutions in Samoa, does not wish to prohibit new ventures that will benefit Samoa’s public and economy; however, as with every new venture such as cryptocurrency, there are always risks involved.

Cryptocurrency is a form of digital money that is designed to be secure and, in many cases, anonymous. It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.

Cryptocurrency at this current stage is unregulated, which makes it difficult to put in place procedures that will protect the public, as lack of regulation will attract criminal participation such as fraudsters and scammers (pyramid schemes). It can also be used for money laundering purposes and tax evasion.

There is currently a lack of information and public awareness as to how these cryptocurrency works, as such, this will often lead to people making ill informed decisions, such as investing in get rich quick schemes!

There is also a high risk to Samoa’s economy, as certain cryptocurrencies may pose a security risk, such as vulnerability to cybercrime, and as a result, cause significant damage to our financial system and infrastructure.

CBS encourages the public to be alert and aware of these schemes. They may look like an attractive investment to quickly make more money, but you risk losing all your hard earned money without any possibility of recovering it. In whom do we trust? Who are we going to put our trust in? – Source cbs.gov.ws

The OneCoin team is running events throughout South East Asian, Europe, India and Africa. Their goal is to build interest in their digital currency and money making opportunity. Two of the major participants in this company have been involved in multiple scam businesses.

The BBC has even taken a look into the OneCoin scam.

BBC Panorama Investigates OneCoin/OneLife Video

OneCoin Scam Conclusion

In my opinion, OneCoin is a Ponzi scheme that is linked with a pyramid recruiting scheme disguised as a new digital currency. Any money you spend will not be refunded once you login to your OneCoin account. They use the history of the increasing value of bitcoins to sucker you into their scam. Each individual who profits does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. Avoid the OneCoin scam.