OneCoin enforce withdrawal KYC, financial troubles?
As it stands, OneCoin affiliates are waiting upwards of four weeks for withdrawals to be processed.
Support are purportedly not responsive and messages regarding withdrawals are routinely deleted from OneCoin’s Facebook page.
Now, in yet another move that distances OneCoin from legitimate cryptocurrencies, OneCoin are demanding identification documents before withdrawals are processed.
In an email sent out to OneCoin affiliates, the scheme cites “regulations regarding cryptocurrencies” as the reason behind the decision. Specifically which regulations OneCoin are referring to is not disclosed.
Due to the latest changes in regulations, OneCoin can allow only members with COMPLETE and APPROVED KYC procedure to SELL coins on the One Exchange.
To get an approval of KYC on the Exchange, please include the following information and upload photos in jpg or pdf files:
ID – could be your ID card or Passport with your picture and the names registered in your OneCoin account
Proof of Identity – you must give us a proper proof of your identity, meaning that we need to see a UTILITY BILL that has your name (the same as the one on the passport or ID card) and the address you filled in beforehand.
Note that member KYC approval may take up to 4 weeks. Any discrepances (sic) with regards to unmatched names in your OneCoin profile, your Passport/ID card or Utility Bill will mean that your KYC will not be approved.
The new KYC policies in the Exchange will be enforced from December 1st, 2015.
Anyone who is familiar with the MLM underbelly and banking regulatory problems that go with it, should be able to recognize the above for what it is.
OneCoin’s bank accounts continue to be flagged for money laundering, with the above an effort to appease financial institutions the accounts are held with.
Said financial institutions have procedures they have to follow when accounts trigger fraud and money laundering filters, with KYC implementation typically among the first steps. Transfer limits are also common, which would explain OneCoin’s ongoing withdrawal delays.
One of the big selling points of BitCoin and cryptocurrencies in general is the anonymity they provide, with KYC requirements to transfer a cryptocurrency flying in the face of that.
Moreover, OneCoin’s abrupt implementation of KYC flies in the face of recent comments made by founder Ruja Ignatova.
Speaking as a paid corporate sponsor of the EU Southeast Europe Summit, held over October 14th and 15th in Bulgaria, Ignatova proclaimed:
Emerging markets are out there. We can speak about Latin America, we can speak about Asia, we can speak about Africa … and we can speak about also the small Asian countries.
In all these countries we have an issue, that we also have here actually, alot of people are underbanked, unbanked or just forgotten by the big players.
Why?
Because they are poor, because they needs that are not that interesting in the transactions. Or simply because some of these people do not have proper documents.
I have been in countries where every one of them has a smart phone, but nobody has a proper ID card.
So how do these people bank?
Ignatova goes on to present OneCoin as a solution to this problem.
Yet as per their latest withdrawal stalling policy, unless OneCoin affiliates have an ‘ID card or Passport with your picture and the names registered in your OneCoin account‘ and “proper proof of your identity”, they are now effectively cut off from invested funds.
BitCoin and other legitimate cryptocurrencies meanwhile have no such restrictions on transfers between users.
As far as Ponzi schemes go, KYC is typically implemented as regulators close in. TelexFree implemented it in their final months and if I recall correctly, Zeek Rewards had some form of it too.
Basically as a Ponzi scheme hits critical mass, the sheer amount of transfers sets of financial regulatory alarms around the world. Schemes then scramble to justify the huge amount of transfers by providing banks with affiliate KYC documents.
Without which requested withdrawals are denied indefinitely.
This isn’t the banks trying to take anyone’s money mind, it’s them protecting themselves in the event regulators move in and start seizing funds and freezing accounts.
As part of the ongoing TelexFree Ponzi litigation, banks all over the world have been sued. All but one or two have settled, covering the return of stolen Ponzi funds out of their own pocket (the customers responsible have long-since withdrawn the funds).
If a bank is able to show they implemented strict KYC procedures upon detecting potential money laundering and Ponzi fraud, they’ve naturally got more of a leg to stand on legally.
As far as OneCoin are concerned though, having touted themselves as a cryptocurrency for people without ID documents for just over a year now, they’re now likely to be flooded with chargebacks and angry affiliates demanding their money back.
That will in turn set off an even wider array of financial fraud filters, placing additional strain on existing banking relationships.
It’s pretty much why we’ve been seeing OneCoin play bank account pingpong these last few months, with the situation only likely to deteriorate as we enter the preliminary stages of a collapse.
On the plus side, at least for those who do manage to send off the required KYC, when the time comes to clean up this mess regulators will have some paperwork to get started on.
One of the biggest challenges in huge Ponzi regulatory cases is the piecing together of victim details. KYC tied to specific investor accounts should make that process somewhat easier.
At least on the verification side of things. For those who jumped on OneCoin because they believed it to be a legitimate cryptocurrency they wouldn’t need ID to use, maybe you can ask Juha Parhiala for a loan.
It is after all one million dollars of your money he’s withdrawing each month…
Update 23rd January 2024 – Ted Nuyten quietly deleted all OneCoin coverage on BusinessForHome in January 2024.
This article originally contained links to cited BusinessForHome articles. Due to the deletion of the content, those links have now been disabled.
Nuyten hasn’t publicly addressed why OneCoin coverage on BusinessForHome was deleted.
It will be interesting to see what Tom McMurrain and Ken Labine have to say about this.
very informative article oz!
meanwhile ruja ignatova is pretending all is well in onecoin paradise.along with juha parhiala and sebastian greenwood, she is scouring thailand for fresh investor funds.
with claims that onecoin is now 700,000 members strong, i guess she needs more and more funds to feed the beast.
thailand had the gumption to take down ufun and it’s fake utokens. i hope assistant commissioner of thailand police suwira songmetta is made aware of the onecoin scheme.
though onecoin does not have an official presence in thailand like ufun did, they can atleast issue public warnings and alert banks to the potential threat of onecoin sucking funds out of thailand.
if ruja’s bigfat feet dare to step into india in her bigfat ball gown, i’m sooo reporting her to every authority in sight! i’ll have to do it anonymously but i’m going to do it.
ken labine is totally caught up in selling personalized landing pages for onecoin at 12$ per month. a man’s got to feed his family!
I wonder what US investors who re-signed up with bogus details are going to do now…
and the 700 odd bulgarian accounts which were probably shifted to some other country!
This decision by OneCoin is going to have far wider reaching effects than the usual pyramid / ponzi “KYC” excuse.
As you’ve pointed out above, one of OneCoins’ major selling points was its’ anonymity, which means it’s highly likely a far greater number than usual fake names and addresses were used by participants.
Throw in affected members who are savvy enough to NEVER send identifying documents to anyone, much less an unknown company in Eastern Europe, and I can see Ignatova laughing all the way to the bank.
Normal KYC is required for most bank services, so it doesn’t need to “mean” anything in itself if OneCoin requires some proof of ID.
The OneCoin MasterCard will require it, i.e. JSC Capital Bank in Georgia will most likely ask for identity proof for each and every card.
It ain’t the first time the head of scheme said something then a little later something completely opposite happened in the company.
Zeek head said “we’re doing fine”. Weeks later SEC came calling.
Steve Chen holds party congratulating winners. Weeks later SEC came calling.
Ruja says “people who have no ID needs way to bank and OneCoin is the answer”. Few weeks later “everybody needs to show ID”.
Basically, Ruja is bull****ing her way through Europe, pretending to know cybercurrency but getting a crash course on banking regulations instead.
A lot of people claimed to “provide a way for the poor to bank”. What they do instead is squeeze those people hard for fees and whatnot, esp. in the US, but I imagine it’s the same in Eastern Europe.
I can’t stop beeing amazed, that people willingly hands over all their identity to a private company with no regulation.
Further, no one seems to be alert that is comming out of Bulgaria and other countries outside Europe. Bulgaria is still a curupt country….
Bulgaria is a member of EU (since January 1st 2007). Perceived corruption level is similar to Brazil, Italy, Greece, Romania, Senegal, Swaziland — place #69 on Transparency International’s list of countries.
transparency.org/cpi2014/results/
It means something has changed with Onecoin doesn’t it> And Isn’t change “something in itself?”
It doesn’t need to “mean” anything in itself in terms of “red flags” — in terms of anything meaningful. I have already mentioned OneCoin MasterCard and JSC Capital Bank in Georgia.
The change here happened more than a month ago.
the onecoin mastercard is currently ‘by request’ only. if a onecoin investor wants the mastercard then s/he has to provide identification [KYC].
onecoins recent demand for KYC compliance is related to the onecoin exchange and not the onecoin mastercard.
i dont know how the onecoin exchange works. can onecoin be traded for fiat currency on their exchange?
cryptocurrency exchanges which trade altcoins [like bitoin] for fiat currencies [$, euro etc] are required to be AML [anti money laundering] and KYC [know your customer] compliant.
for example the poloniex and bittrex exchanges, in which cryptocurrencies are inter traded, but cannot be converted to fiat currency, do not require AML/KYC compliance.
cryptsy, which allows conversion of cryptocurrency to fiat currency requires AML/KYC compliance. moreover cryptsy is USA based and hence strict about compliance.
why does ruja’s private exchange where only onecoin is traded between members require KYC?
OneCoin’s exchange isn’t an exchange as we know cryptocurrency exchanges.
All it does is process OneCoin affiliate withdrawals (conversion of Ponzi points into funds).
No legit exchange wants to get involved with Ponzi points so OneCoin’s exchange is the sole withdrawal method at the moment.
That one is a red flag. It’s a BS explanation, trying to pretend that people invest in something of value.
OneCoin can be bought by using the “mandatory account” or the “cash account”. None of them will involve any real monetary transactions.
That’s the difference between Bitcoin and Onecoin. Bitcoin can be exchanged directly with other things of value (other currencies, goods or services), while onecoin only can be traded inside a closed network without any monetary transactions.
1. My primary guess is that KYC is required by the bank. The bank will need it to reduce its own risk.
en.wikipedia.org/wiki/Know_your_customer#Typical_KYC_controls
2. My secondary guess is that OneCoin will need it to avoid taxes, e.g. to be able to document that money has been paid out to people in other countries.
ZEEK REWARDS AND TELEXFREE
They both produced false 1099 tax forms as a method to reduce their own taxes. Paul Burks was indicted for a $108 million tax fraud (Doc1.pdf, page 6).
sites.google.com/a/asdupdates.com/files-website/zeek-rewards-sec-case/zeek-rewards-14-cr-208-usa-v-burks
Payouts to the back office were falsely reported as “taxable income” for the tax year 2011. The affiliates had to pay taxes for income they never had received / never would receive in reality.
ONECOIN
OneCoin may be planning something similar. False “tax reports” may pop up in the back offices in February 2016.
It can correctly report withdrawals. Withdrawals are taxable as income.
Any other payouts — “back office only payouts” — are not taxable or reportable in a tax form.
yes. the one-exchange is not registered as a cryptocurrency exchange anywhere [to the best of my information] so it is not regulated and hence has no need to be KYC complaint.
rujamama probably does not want to scare her investors by admitting that the bank is getting tough with onecoin, so she’s laying a story about one-exchange requiring KYC.
i have still not received a response from mastercard europe regarding their relationship with onecoin. i have sent them a reminder, they should bloody well reply!
also, glenn smith of the USA is still promoting onecoin all over the world. he has become secretive on his FB page and does not mention onecoin by name, and asks people to send him private messages for details.
i wonder if he is still promoting onecoin in the US? what else could explain his need to be secretive?
Reinvested earnings are taxable to the recipient and reportable by the company. A cash distribution is not requisite for the issuance of a 1099… but reported earnings must be actual not merely apparent.
That’s why I clearly mentioned ZeekRewards and TelexFree, so there shouldn’t be any doubts about it.
The KYC requirement first popped up 2 months ago when people tried to withdraw money.
The “red flag” is that the exchange doesn’t require any such process. It’s a BS explanation. They have managed to run the exchange without any KYC up until now. “Changes in regulations” should normally not affect it.
The only thing traded on the OneCoin Exchange is onecoins. People don’t pay any money for the onecoins, they pay with “Mandatory Acoount” or “Cash Account”. None of those two accounts are bank accounts, and they are not “client accounts” for a licensed broker-dealer or any other licensed type of firm.
The investment in onecoins is about a belief that it actually is worth something, and about a hope that it will be worth something in the future. Beliefs and hopes are not taxable. 🙂
So if I say ZeekRewards and Telexfree were completely legitimate “there shouldn’t be any doubts about it since I clearly mentioned ZeekRewards and Telexfree.”
Testing, testing… 1 2 3
The initial post was about taxes, it wasn’t about the legitimacy of ZeekRewards and TelexFree.
ZeekRewards sent out false 1099 tax forms for the tax year 2011, counting reinvestments made from the back office as “accrued income” — based on the theory that money had been made available to the affiliates through the back office and could have been withdrawn in 2011.
OneCoin may try to use a similar tax strategy — some variation of the same strategy.
“Taxable event”
Taxes are about taxable events and taxable value. Whether cryptocurrencies are classified as commodities or as something else will be rather irrelevant.
ZeekRewards’ payouts of daily profit share to the back office didn’t generate any taxable event. There wasn’t anything of monetary value going out from the system or into the system, or any increase of monetary value of the investment.
ONECOIN
The same logic about “taxable event” and “taxable value” can be applied to OneCoin too.
“Mining and trading”
* There’s no identifiable transactions of money or other things of value when people use tokens to pay for mining of onecoins, and there’s no identifiable monetary value in the result of the mining — the onecoins.
* Bitcoins on the other hand have identifiable monetary value, and can be exchanged with other things of value in a normal market.
* There’s no identifiable transactions of money or other things of value when people use a “mandatory account” or a “cash account” to pay for onecoins in the internal exchange.
“Commissions and rewards”
* There’s no identifiable transactions of money or other things of value when OneCoin pays out commissions or rewards to a “mandatory account” or to a “cash account”.
* Withdrawals on the other hand will involve a real monetary transaction to an external account.
Nobody sent out form 1099 based on accrued income. Zeek didn’t and Onecoin won’t.
All this is simply chaff. KYC regulations had been in effect for decades. The latest version for Europe, known as “3rd AML Directive and Regulation 1781/2006” is proposed 2006 (duh), with two proposals adopted 2013.
europa.eu/rapid/press-release_IP-13-87_en.htm?locale=en
Basically, Raja is admitted that she’s making **** up as she goes along.
“Based on the tax theory“ — not on how Zeek operated in reality. It was already explained in the same post.
That tax logic made Zeek’s IDS Income Disclosure Statement look much nicer — “everyone had made some money in 2011” — and the average and top incomes were listed with much higher amounts than what Zeek had paid out in reality.
Ruja Ignatova will most likely be tempted to use a similar idea.
Correct. But KYC isn’t required for certain “merchant services”, e.g. payment for goods or services — or for certain limited amounts of money.
For e-wallet services, the merchant is the client. Affiliates can be classified as “sub merchants” of the merchant rather than as clients of the payment processor.
OneCoin’s payments IN from affiliates are disguised as “purchase of educational packages”. Payments OUT are probably disguised as something, too.
From the Bitcoin Wiki, about taxes:
Onecoin doesn’t have any “market value” or “fair value”, since it currently isn’t traded outside the network itself — and the internal trade doesn’t involve any transactions of money or other things of value.
There’s no “capital gains” from the trade itself. “Virtual gain” isn’t recognizable from a tax perspective.
Onecoin can be exchanged with “mandatory account balance” and “cash account balance”. Those transactions are not recognizable as “transactions of money or other things of value” from a tax perspective.
OneCoin doesn’t have any recognizable “net proceeds” from mining or trading. It doesn’t have any recognizable “commercial value” in trade (as a product or service).
It doesn’t have any recognizable “market value” (“weighted average exchange rate”) when used as a payment method, since it only can be used inside a system or a game.
In other words there is no basis on which Onecoin should issue 1099s. Thanks for clearing that up. Accruing points in a game not a taxable event.
Zeek was different since it purported to be paying affiliate’s a share of company profit (which were then electively reinvested in Zeek’s “stock” or “points” or whatever you want to call them, which in turn grew their “cash balance” which, in turn could be accessed by a withdrawal request.
The ostensible distribution of profit/bonuses and commissions (subsequently reinvested) is why Zeek issued 1099s … not because the affiliates had accrued point balances that “could be withdrawn.” The 1099s synced up with Zeeks belief (?) or storyline (?) that taxable profit was being produced and distributed “daily.”
The ownership of JSC Capital Bank has changed since I initially checked it in September — with one new shareholder that now owns 42% of the shares.
It was already described that way — as false tax reports — in post #16.
I don’t think OneCoin will use exactly the same tax logic as ZeekRewards, but it may use some similar ideas.
* The Cash Account can be said to have been “available for withdrawal” during the income year 2015. People had multiple choices for how to use their Cash Account balances.
* They didn’t have the same choices for the Mandatory Account.
A tax logic or income logic like that isn’t correct, but most people will probably accept ideas like that.
Well on a deeper level its hardly credible that Onecoin would issue fraudulent tax forms unless they felt it was necessary to perpetuate the scheme.
Given the information you provided Onecoin is not required to issue 1099s and can explain to their investors exactly why they are not receiving them.
The same was not the case in Zeek, since the nature of the lie, which was that affiliate’s were receiving daily profit sharing, bonuses and commissions would make anyone with a lick of sense question why no tax forms were issued.
These two situations are not equivalent. The probability the Onecoin will issue 1099s seems very remote. Why would they if they are not required or expected?
I have no idea what you’re talking about there. I believe you introduced one or more dysfunctional ideas yourself right from the start of this discussion, and after that you have primarily focused on that idea or those ideas.
OneCoin isn’t located in the U.S. but in Europe. ZeekRewards and TelexFree were located in the U.S.
ZeekRewards sent out false 1099 tax forms, claiming that affiliates had earned “accrued income” from the internal payouts of daily profit share to the back office. It hired a tax expert to add some substance to that claim — to get affiliates to accept the idea that money had been made available for withdrawal during the income year 2011.
The fact that ZeekRewards did something doesn’t mean that OneCoin will do exactly the same thing. I believe you introduced a wrong idea there.
Norway’s Fantasy World Part II
I introduced the idea? Do you have amnesia again.
I’m glad you have come to that conclusion.
I had two relevant “initial statements” …
1. That OneCoin would need the KYC as a part of documentation for its own taxes, e.g. to prove that money had been paid to people in other countries.
2. That some false “tax reports” could be displayed in the individual back offices.
* “False tax reports” isn’t the same as “1099 tax forms”.
* “Pop up in the back offices” is about something different than “sending out tax forms”.
“Trick people to believe in something”
ZeekRewards tried to trick its affiliates to believe that daily profit share paid out to the internal “Cash Available” account were taxable as “accrued income” — as money that had been constructively received during the income year of 2011 — but where affiliates had made a choice to spend the money on building their own businesses.
OneCoin may try to use a similar idea — trying to trick its own affiliates to believe in something.
One of us must have introduced that idea.
I’m unable to find where I can have introduced it as a part of the discussion, but I’m able to find where you introduced ideas like that in post #18.
That’s the reality here. You introduced the idea that OneCoin would or wouldn’t send out 1099 tax forms yourself.
There’s nothing wrong in my statement there. I didn’t say that real tax reports would be sent out to anyone, I said quite the opposite.
A false tax report may simply be a summary of the different transactions or payouts (commission payouts, transactions on the exchange, etc.), plus some information that OneCoin will not send out any tax forms to tax authorities in other countries than Bulgaria, plus some “general tax advices” for what people normally should report themselves.
It will be false if it contains misleading information, e.g. if payouts to the “Cash Account” are being presented as real payouts of money, or if any “asset value” is being assigned to the onecoin balances.
No sir, you are the one that brought Zeek and its issuance of 1099s into the discussion,and then followed it by citing United States IRS regulations.
If you want to talk about Bulgaria and its tax requirements then go ahead, but don’t cite specific United States tax codes in the middle of it and then act surprised when someone tells you that 1099s don’t apply to Onecoin.
I didn’t say that OneCoin would use exactly the same methods as Zeek. I said something quite opposite.
Post #16 was a second reply to Anjali’s post #13. It will need to be interpreted within that context — as a part of a normal dialogue about the KYC requirements and why it suddenly has become important for OneCoin to Know-Its-Customers.
Your posts #18 and #22 seem to have focused on some different ideas.
FWIW: EU to tighten controls around cybercurrencies
scmagazine.com/eu-to-expand-controls-on-virtual-currencies-to-fight-terrorism/article/455403/
Could we stop assumption and state facts. Remember people are investing their money.
Ashish Kumar from India just told me now he invested 15000 Euros in Jan 2015 and after 11 months he withdrew 50000. How could this be possible if its a phonzi scheme?
Lol.
Withdrawals in OneCoin have been broken for months. Ashish Kumar is full of shit and evidently will say anything to get your referral commission.
Either that or he has 50,000 worthless OneCoin Ponzi points, obtained by recruiting suckers such as yourself.
So to sum up, you opinion is that Onecoin wants to issue some 1099-like Bulgarian tax form in order to reduce it Bugarian taxes and that is why they have asked for investor identification. Well… its a theory.
Conligus Announces Strategic Alliance With OneCoin, so does this effect the company Conligus.
Simple, he took over people’s money. Remember, Madoff had BILLIONS of dollars around and ran it for decades.
You don’t have any facts. You have either hearsay or repeated other people’s unverifiable statements (which may even be outright lies).
I have no idea what you’re talking about there. You have probably used a “very creative interpretation” there. I’m not interested in any lengthy discussion about how to interpret some of my posts.
Ha. Me neither, but since that’s what you said, I can see why you would want to bury the subject. I am content to go with Oz’s reasoning.
SEC Targets Connecticut Bitcoin Companies
foxbusiness.com/markets/2015/12/01/sec-targets-connecticut-bitcoin-cos/
Our ponzi peddling friends will not be happy about this news.
How long before they receive a similar call?
Tick! Tick! Tick!
I was going to do writeup on the SEC bust when I saw it earlier today.
These guys weren’t mining. MLM cryptoscams like OneCoin do (purportedly) run algorithms, but it’s all private mining.
They basically run a script on some computers and claim legitimacy. Nevermind that it’s all a closed-loop and newly invested funds are used to pay off existing investors based on a value set by the operators of the scheme.
Something like BitClub Network is a better example within the context of this bust, as they obvious don’t pay out the specified ROIs solely from mining operations.
This one has some elements that are relevant for OneCoin too, even if it’s about a different type of cryptocurrency based scheme. Link originally posted in the “About Behind MLM” thread post #383 by K Chang (today).
GAW Miners and Zen Miners were based on a different concept, on Bitcoin mining power, but they also introduced their own altcoin named “Paycoin” and a cloud based wallet service (“Paybase”).
From the SEC complaint …
OneCoin has some similar types of misrepresentations / fraudulent transfer of funds from new investors to old investors, based on a “system” that claims to generate profit of some type.
One of the links in that article showed how “Proof of Work” and “Proof of Stake” could be falsified — that the blockchain simply could give the organizer 12 million coins for free — while the remaining 1 million coins could be “mined” by investors.
The good news is that, if the Ponzi is based in U.S., it will probably be shut down quick. Like GemCoin (California) and this Connecticut Ponzi. But, with OneCoin overseas, who knows how long they can steal from gullible people.
Some poor people are taking from their retirement funds and “investing” due to slick salespeople. I hate watching it.
That was in March / April / May 2015.
Conligus was a collapsed pyramid scheme. It collapsed in early 2015. The existing members were transferred to OneCoin — but most of the members were fake ones if I have interpreted it correctly (I have looked at the user activity in Conligus before the collaps).
“Conligus freezing commissions” – February 10 2015:
Conligus wasn’t very successful, but it pretended to be. It collapsed about 4 months after it was founded. It had a few followers on Facebook, but claimed to have “tremendous growth” right up until the collapse.
Other Conligus articles on Business For Home:
Facebook — 579 “likes” and very few active followers.
facebook.com/conligus.org/
It probably means that a huge number of OneCoin affiliates are fake ones — added gradually over time from Conligus database.
The company launched in early 2014. Its main growth was in late 2014. The SEC investigation started in January 2015. Subpoenas were sent in August 2015. Lawsuit was filed in early December 2015.
That’s almost two years, a shutdown after it had collapsed in reality.
A friend informed me he can’t get on the onecoin site. Says, 500 internal server error. He was going to set up the kyc.
I only know what I have read here about kyc and what onecoin is requiring, not sure if I would give one coin any info, such as passport, driver’s license, photo, etc. What’s next, your social security #?
What is it going to take for this Ruta to be stopped?
I rarely visit Troy Dooly’s page. One of the reasons was his relationship with Zeek.
However, I have to give him credit for his most recent post:
facebook.com/troydooly?fref=nf
marketwatch.com/story/sec-alleges-bitcoin-investment-was-ponzi-scheme-2015-12-01
Tom McMurrain gave it the typical “but, but, but what OneCoin sells an educational package”
Oh…..I get it now. OneCoin is actually mining special “tokens” that magically create a “measurement of energy”. And I was thinking it was just a run-of-the-mill ponzi scheme.
It will be interesting to see how Ken Labine spins this most recent bombshell!
Thanks Troy for telling it like it is! BAM!!
@MLMBrokenModel — it’s just “no true Scotsman” over and over. It’s “not really investment”.
If it’s not investment but education, why are they implementing KYC, eh? The guy can’t even argue properly. He’s doing a conspiracy argument: argue merely ONE ASPECT of the whole thing, never mind all the other stuff that doesn’t fit.
@ K Chang – – Tom said, “I spent over $500,000 on a legal defense at a state and federal level and know the law inside and out”
So, being the curious type and since he brought it up himself on a social media page, I ran a google search to learn more about this $500k legal defense.
I’m not going to post it here. If interested, Google “Thomas McMurrain FBI Atlanta”
Lol, third listing is K Chang’s own blog.
@ Oz I just read his post and enjoyed the last sentence, “Guess a leopard really can’t change its spots.”
I was thinking of another animal – the zebra. Stripes come to mind…..not sure why. 🙂
Trond Hov (@TradestoNetwork) is an investor in OneCoin with initial investment of 15000 Euro and tripled over 9months and has made withdrawal of over 50000 Euro within this period. Is this still scam? Would he rob his integrity in a scam?
(Ozedit: spam removed, do not link to popularity polls here)
@Africa
Yup, because that 50,000 EUR was newly invested funds. Paying existing investors with newly invested funds = Ponzi scheme.
He’s participating in a Ponzi scheme, he has no integrity.
Did you hear that certain Madoff investor withdrew several BILLION dollars from the Madoff Ponzi, and his widow had to give it back?
Did you think they also thought “this cannot possibly be a scam, it had operated for over a decade, and Madoff was once head of NASDAQ”?
Ah, yes, my old TVI Express expose.
Yet Another bank. Now in the US, Florida!
Ignatova is so smart. She is already a hundred million dollars millionaire. She make a system better than the traditional Ponzi Scheme. So which is better?
She got a way out. By how :
Right now, 1 onecoin is about 3.75 EURO. But It’s is not the market value like bitcoin. It’s the value make by Ignatova and her team. She just make the price to —> –> about 0.01 EURO an Onecoin.
So,she can thief all the money of the system in legally.
@ Anonymous – Ignatova cannot just walk away. If she drops the price from 3.75 EURO to 1, the sheep will file complaints which will force the regulators to take action immediately.
One Coin is such a blatant money game that I believe the regulators are quietly collecting information on the company and top distributors as we speak. My prediction: Indictments coming in January.
They need to make an example out of the main players too, IMO.
It’s time for the adults in the room to take back control.
Last week a friend of mine invested in this OneCoin bullshit and since then it seems he “converted” several other people (at least 4 that I know of) to join.
I tried my best to convince him that this will eventually get him nowhere because these coins have no real world value but he’s already made 70/100 euros for bringing new people to the “business” so my words are falling on deaf ears.
When all this will go south all those (stupid) people will blame HIM for getting them in this mlm, ponzi, or whatever you wanna call it.
The ones who bring in a lot of new people to this onecoin thing WILL make money, but the ones who join this to make money only from the coin itself, with the hope that it will become a real coin with real value someday … I think those guys will have a bad time.