OneCoin claims no Ponzi because IMAs scammed, not consumers
OneCoin has stopped defending its fraudulent business model.
Instead, the company now claims it’s not a Ponzi pyramid scheme because only IMAs were scammed.
“IMA” stands for Independent Marketing Associate and is what OneCoin refers to its affiliates as.
As per OneCoin’s business model, IMAs invest in OneCoin points. OneCoin itself sets the internal value of the points.
Up until January 2017, IMAs were able to cash out. OneCoin paid IMA withdrawal requests with subsequently invested funds.
The pyramid side of OneCoin is still limping along, wherein existing OneCoin IMA investors are paid to recruit new IMA investors.
There are no retail customers in OneCoin.
In response to the Samoan Central Bank reaffirming OneCoin is a Ponzi-pyramid hybrid scheme, the company told the Samoa Observer;
the current legislation on pyramid sales, its origin and expressed purpose is consumer protection, and the user who are part of the OneLife Network are not consumers, but Independent Marketing Associates (I.M.A.) — meaning they are self-employed business owners.
It is unclear what legislation OneCoin is referring to.
Not that it matters, as no country in which pyramid schemes are illegal has an exemption for scamming “self-employed business owners”.
OneCoin also trotted out its “no business operations” excuse too.
No one has authority to act or make statements on behalf of the company in Samoa and New Zealand.
Let it be clear that neither OneCoin nor OneLife companies have organisation, representation or employees in Samoa and New Zealand.
OneCoin has repeated this in every jurisdiction authorities have cracked down on the scheme. Not that it’s done them any good.
Any country on the planet can investigate and declare a Ponzi-pyramid scheme like OneCoin illegal, irrespective of whether its executives are based out of the country or not.
Looking forward, one can only hope OneCoin puts forth the same nonsense for Konstantin Igantov’s defense.
The scam’s greatest gift yet could be its hilarious Ponzi waffle getting slaughtered in US courts.
I might have to start ordering popcorn in shipping crates…