OneCoin openly promoted as an investment in the US despite ban
Despite OneCoin ceasing business operations in the US last October, a group of investors continue to openly promote the scheme to US citizens.
For all their claims of Know Your Customer and compliance, and as long as new investor money flows in, OneCoin appear to have no problem with turning a blind eye.
Late last month we covered a Chicago event being promoted on a OneCoin “team leader call”. Today we shift our attention to Florida, where prospective OneCoin investors were enticed with a “free dinner”.
The event in question was held at the Coral Gables Holiday Inn on July 13th.
A flyer advertising the event in a local newspaper billed the event as “an educational seminar”.
Trading on the success of bitcoin, the flyer boasted:
- Do you know that more millionaires have been created from bitcoin than any other company in history?
- Our company is 100 times larger and growing faster than bitcoin, Microsoft, Apple and Facebook
- Our company is the fastest growing company in world history to reach 1 billion in sales in less than one year
- Our company is now in OVER 200 countries and growing
- Over 5000 new members sign up each and every day!
- Up to 2,000,000 members today – just coming to the U.S.
Guest speakers at the event were promoted as “millionaires in less than one year – putting in only a few hours a week”.
We will show you our success formula on how to make “a lot” of money very quickly!
One of the guest speakers at the event was Carl Wilt, a OneCoin investor from Tennessee.
Here’s how Wilt pitched OneCoin to the thirty or so guests at the event:
[0:05] So Greg and I was driving down the road from Orlando yesterday and a friend of his gave us a thousand dollars… about seven months ago Greg?
(off-camera): Yep.
Seven months or so ago. We calculated for him, because he hadn’t even opened his backoffice, he said “I don’t know, what’s it worth?”
That one thousand dollars is worth seven thousand. Oh by the way, on October 1 its gunna be worth fourteen thousand dollars.
So don’t think you have to invest millions. Dip your toe get comfortable with it. 500, 1200, 3000, 5000, whatever it is… but I promise you by Christmas you’ll be happy you did.
I know that… I just know it in my knower.
Wilt tells his audience that if they have “401K money or IRA money” and want to invest it in OneCoin, that he and his team can “get creative and savvy”.
Explaining how a OneCoin package is converted to profit, Wilt explains;
[2:23] So in a nutshell that package that he’s purchased, he’s got about $16,000 or so outlay.
That account is going to produce about 30,000 OneCoins over the next year. I believe we’ll have a $20 coin next Christmas.
$16,000… $600,000 next Christmas. There it is.
After Wilt delivers his pitch, another man identified as Herman closes before the guests are served dinner.
During dinner, OneCoin investors canvass the group and try to convince guests to invest.
One investor approached a guest and identifies himself as the person who “sponsored Will, who sponsored Herman.” The man claims “everybody who is in here is with me”.
Then comes the hard-sell.
[10:43] All I can tell you is it’s the best thing I’ve ever done, that’s why I had to tell Will about it.
I’ve been involved for about nine months and made a decent amount of money. Not like Carl but I’ve made a decent amount.
I say a decent amount… it’ll be, in October, about $100,000. I got in for about $6200.
The same man, when asked how OneCoin will magically double each affiliate’s OneCoin in October, explains;
[11:11] Well, you get paid commissions in money, then you get so many coins… the coins are worth money.
[11:30] But what she’s (Ruja Ignatova) gunna do is if you have… let’s say in your account you have 3000 coins, October 1st this lady’s… she’s the CEO, she’s gonna double everybody’s coins.
How do you just…
Because she’s the CEO. She can do whatever she wants. It’s basically like doubling your money.
When asked about OneCoin restrictive withdraw procedure (affiliates are unable to withdraw funds represented in their backoffice at once), the man compared OneCoin to an IPO and the stock market.
[12:28] How do you cash out?
You can cash out a certain amount every single day. You can’t cash out the whole amount.
How come?
Because it’s like an IPO. When you start in the stock market… they don’t want… volatility that’s what’s wrong with bitcoin.
The man goes on to boast about getting “an additional 13% a year” because he deposited his coins in CoinSafe. He then compares investment in OneCoin to a Certificate of Deposit.
[14:41] It’s like a CD, y’know you’re gunna keep the CD in your account for a year, two years, five years or whatever.
A man in the background is shown trying to explain OneCoin investment with an “Easter egg hunt” metaphor.
Officially OneCoin do not operate in the US. As is plainly obvious however, OneCoin has US-based investors and is actively being promoted to US citizens on US soil.
In various interviews, Ruja Ignatova claims OneCoin don’t operate in the US because “the rules are unclear”.
This of course makes little sense, seeing as bitcoin and every other legitimate cryptocurrency are currently legal in the US.
Despite the marketing claims made just two nights ago in Florida, neither OneCoin or their affiliates are registered with the SEC, a requirement for the legal offering of securities in the US.
OneCoin and its affiliates are also not licensed to offer investment advice or banking and financial services.
OneCoin for their part appear to have no problem with their affiliates violating the Securities and Exchange Act. To date the company has failed to take any action against US promoters of the scheme.
Footnote: The video referenced in this article is titled “One Coin Ponzi Miami Sales ‘Seminar’ Disrupted by Junseth and DeRose”.
It was published to the YouTube account “Chris Derose” on July 14th, 2016 and can be viewed below:
Update 11th January 2021 – As at the time of this update, Chris Derose has closed his YouTube channel.
As such the previously linked YT video referenced above is no longer available.
That’s an “interesting” use of quotation marks in the ad.
there are a few ‘elderly’ people in the audience, who are not of the bitcoin generation and may not be too conversant about cryptocurrency.
so, carl wilt and his conmen are taking advantage of their ignorance and piling on the “free” food [“interesting” use of quotation marks in the ad], to steal their retirement funds.
US regulators get pissed when ‘vulnerable’ sections of society are targeted by ponzi/pyramid promoters, they need to step in and stop this scamming now.
there are some interesting comments under this video:
chris derose who has uploaded this video, appears to be a bitcoin enthusiast, and the fact that he calls onecoin a ‘ponzi’ scheme, shows how much respect the crypto community has for onecoin.
This thread popped up on Reddit a few days ago regarding OneCoin’s magic blockchain:
reddit.com/r/Bitcoin/comments/4smxzo/onecoin_retiring_their_old_blockchain_and/
Has some pretty amusing commentary from bitcoin/cryptocurrency enthusiasts.
Apparently there’s more to come from DeRose via audio, I’ll be keeping an eye (ear?) out for it.
The crypto / sec community is much sharper, on average, than anyone here. They know exactly what’s up with one coin. And they’ll make fantastic dry humor jokes about it.
The kind of clever and hopeless jokes you can only make if you’ve never experienced a woman.
@Oz – I believe a story on “Ruja’s mathematical defiance of Universal Principles of Economics (Supply & Demand), including “scarcity” and “dilution” is absolute MAGIC”.
….I do not know if we are “waiting for” October 1st announcements, in order to follow up with this CLAIM, but we presently see that “dilution” of 5,700% has ZERO affect on “VALUE,” and Onecoin “Splits” neither affect value.
To ME, I would try to “pull in” a respected Economist. I MAY be able to help you with that. I believe I may be able to get Jeffrey Tucker to issue a “Statement” on this obtuse menagerie. GOSH, I would love to get Ron Paul or John McAfee to make I statement ….or Richard Branson …..(I do NOT count these contacts participation out, BTW).
What I have come to the conclusion of is that Onecoin is nothing more than “VAPOR-WARE.” Onecoin REFUSES to prove ANYTHING behind its alleged “technology.” This is absolutely uncommon in the Tech Space!
There is not even a simple and expected “White Paper” – which NEED NOT “reveal” any internal or proprietary “secrets.” A “White Paper” simply shows SOME technology behind the technologic infrastructure.
The simple economics of it all is this:
Onecoin announced 117.9 billion new coins to begin distribution on its “new blockchain” on October 1st.
They claim that new transaction confirmation times will be “1 minute” (which is still an inconvenience, and which Bitcoin is working on improving through solutions like Segregated Witness and The LIghtning Network/ “Thunder”).
What we know is the present claim is that 10,000 new OC are minted every 10 minutes.
If new blocks retain the same amount of “minted coins” every minute, than the frequency of OC’s are 10,000 coins every minute(!). This gives a final distribution of coins in approximately 22 years.
However, the near-term implication is that based on the present “value (price)” of OC ($6.92), since it is presently “unaffected” by the dilution, is that the present rate of “new money creation” is $69,200 every ten minutes ….but will now be every one minute.
So, come October 1st, rather than Onecoin bringing to market $9,964,800 a day, they are CREATING $99,648,000 in “new money” daily.
To make it SIMPLE:
Because Ruja Ignatova has chosen to “wave her magic wand,” Onecoin just INVENTED not $10MM a day, but $100MM.
In otherwords, simply due to the mere words of “The Almighty Crypto-Queen” and which she has spoken, she is bringing $90MM new dollars to market on a daily basis, for a monthly NEW MONEY CREATION of $2.74 BILLION DOLLARS a month, or $33,228,000,000 annually, by her almighty hand!
This is $100 Billion New dollars in 3 years at the “current rate of exchange.”
If during this period the “value” of the coin were to increase, as predicted, to $35.00 each, than this is a cool $Trillion !!!
I love scammer’s maths 😉
(please feel free to check my own for accuracy)
@Oz: IMHO, THIS is the BIGGEST fallacy and problem which Onecoin has created for itself. There is no known philosophical or economic support for Ruja Ignatova’s claims about “doubling peoples (money) while diluting people’s “holding shares.”
I think THIS should be “pushed” as the MAIN fraud, and everything else (lies and fake publicity, meant for the sole purpose of bringing in NEW invetor money to pay off existing investors) being almost secondary, for the fact that ONECOIN IS USING “MAGIC” WHICH IS NON-SCIENTIFIC OR PROVEN TO BE CONTRADICTORY TO REALITY.
This is quite a funny show, a couple of OneCoiner encounters here
soundcloud.com/bitcoinuncensored/one-coin-its-a-beautiful-day-in-our-neighborhood
and even Good Ole MLM Boy Troy Dooly wags his stern finger at wannabe US OneCoiners
facebook.com/troydooly/videos/10208508826231953/
Just forcing myself to watch Ignatova live from Japan, rambling thru a series of ELI5 nonsense about Bitcoin being too dear and too hard to buy etc. etc. and using the “terrorism” card against decentralized anonymity.
Available streamed via your friendly local affiliate’s FB if you’re a bit of a masochist.
is it like japan cultural day or something?
WHY is she wearing a kimono?
she’s launching the ‘bitcoin killer’ in japan while waddling on stage in a kimono?
seriously?
Ok everyone the new Onecoin website seam to be running on top of cloudflare this is a really good security company and 100% legit. They have a report abuse forme. The best thing is they have the right to investigate all the traffic coming to the website. So if somebody else wants to fill the form
https://www.cloudflare.com/abuse/form
These days, most physical newspaper reading is done by an older demographic. They likely know this and are targeting the elderly and non tech savvy.
Quite a shame actually (and one of the reasons our local paper covers these scams).
Looking at that video and seeing the guy saying 16K investment turned into 600,000$ in 2 years, approx 500% ROI (being generous) is just nuts. Just mind boggling that people are falling for this crap.
And magically just coins doubling just because someone said so… and its interesting how they constantly use bitcoins as the yardstick and how “everything” is going to digital currency.
What is this guy going to do with his 600K worth of coins that is showing up in a back office. And “creative ways” implies Fraud to me when people start telling people how they can “manage” IRAs and Roth accounts.
I really think that the One Coin main guys, Ruja and her sidekicks have no clue how to manage this and going to ride the gravy train for as long as it goes.
When this collapses and its a matter of when, not “if”, I think its going to be one of the largest ponzi schemes of all time.
The Holiday Inn has been enlightened about what OneCoin really is. When asked if they were clear as to what company was being referenced, management said oh yes he knew because they had an incident with them.
Wish I knew what that was.
I think that might be the audio DeRose is going to upload at some point in the future.
From what I gather DeRose and his partner “disrupted” the event. Not sure how far it went but it could be the incident management were referring to.
News just in from some woman called Katherine Clement, posted to the onecoin team usa. Think the wheels are rapidly falling off this ponzi scam!
Same message was posted by different ponzi pimps about ufun, traffic monsoon and maps, and look what has happened to them lol.
Doesn’t matter what you call it, it still is what it is. If it’s not an investment, then what is it? Education packages?
Isn’t that what the purpose of the educational packages is? To learn how to invest in cryptocurrencies? Specifically a particular one called OneCoin?
OneCoin! Come spend money on educational material that teaches you how to provide money to someone else in hopes of receiving more money back without actually investing it.
OneCoin! Where we define the laws of supply and demand, cryptocurrency, and now what is and isn’t an investment.
I’m guessing “Richard” is Richard Marks,a ponzi pump who showed a slide earlier this year that Onecoin had 500,000 Merchants “who were waiting to be onboarded on April 19th, once they hit 30% mined.
He is out of West Palm Beach, Florida, and at one point threatened to sue me for slander and libel if I didn’t “go back and erase every negative comment I’ve ever made about Onecoin!”
I had just received my February copy of Financial IT magazine (reprint of January issue), so I, of course, laughed at him and told him he could count on hearing more from me very soon.
@ Mr Ponzi Scheme
Whether OneCoin is selling the investment angle or not isn’t in question.
It has been proven here that the so-called Education Packages are mostly just stolen copyrighted material anyway.
Anyone that has been following OneCoin over the past years has seen the pumpers attempt to shift their sales pitch from the Investment angle to that of selling education.
What I find hilarious is that these same con artists keep posting their “year ago Facebook posts” for all to see. This simply makes the job of the regulators easier as they use the “ponzi scheme promoters” own words against them.
For example, Ken Labine, one of our favorite scammers re-posted this yesterday:
What obviously stands out is the absence of any reference to the Education Packages. Instead, he promotes the investment side of this ponzi scheme in an attempt to earn his 10% commission on the greed of his friends, family members and social media contacts.
What he thinks was the “best investment of 2015” will become his “worst nightmare of 2016”.
This is not going to end well for him or any of the others who continue to promote this obvious ponzi scheme, IMO.
@ Tim Tayshun
Is the same Richard Marks who also promoted TelexFree and Zeek Rewards (both proven Ponzi Schemes)? If so, that makes 3 ponzi schemes in a row.
What do they say about 3 strikes….
This is a private message which I am publishing between Ken Labine and I of a message Labine sent me stating that HE would make public (so I am just being proactive)
THE GIST OF IT IS THAT LABINE HAS ONCE AGAIN BACKED OUT OF A SCHEDULED DEBATE, MODERATED BY AN ATTORNEY FRIEND.
(note: I have never deleted any comment that I have made on Labine’s videos, or anything else. The following was his message to me on Skype)
Does anyone know who is responsible for bringing OneCoin to the USA?
Was it Tom McMurrain, Carl Wilt, Greg Adelman, Kevin Foster, Glenn Smith, Sarah McGee or someone else?
@MLM Broken Model – Not sure, personally, but here is the results of a bit of digging I did today, and which I posted on reddit and elsewhere:
Onecoin is masquerading under the banner “The New Currency” and “7th Disruption” and other descriptions which depart from the original “Onecoin/ OneLife” names, which have absolutely destroyed their own reputation (oh, and because it is ILLEGAL for an unlicensed MLM to operate in the USA, particularly those selling unlicensed Securities). Here are SUSPECTED Onecoin Meet-Up Groups:
HERE is a Los Angeles Group Meet-Up: meetup.com/Los-Angeles-New-Currency/
Atlanta, GA this may or may not be a Onecoin Meet-Up (I think it is) meetup.com/GreaterAtlantaDigitalCurrencyMeetup/ and meetup.com/One-Billionaire-Club/
This is DEFINITELY a Onecoin Meet-Up possibly founded by convicted con-artist, Tom McMurrain (although it is listed as “Tom Murrin” – possibly to avoid SEO’s [note: I cannot be sure whether an alias or not]): meetup.com/Overland-Park-New-Currency-University/
NOTE: HERE IS TOM MCMURRAIN ACTIVELY PROMOTING THE SCAM IN THE USA: meetup.com/Houston-New-Currency-Luncheon/members/121226522/
OTHERS:
Medfield, MA
meetup.com/Future-of-Money-Meetup-Medfield/
New York
meetup.com/Cryptocurrency-Convention-CCCNYC/
Champagne, IL
meetup.com/CRYPTO-preneur-Champaign/
Santa Barbara, CA:
meetup.com/Santa-Barbara-Digital-Currency-Meetup/
Ventura California
meetup.com/Ventura-New-Currency/
Nashville, Tennessee
meetup.com/Nashville-Digital-Currency-Meetup/
Pleasant Grove, Utah
meetup.com/Financial-Education-For-Digital-Currency-Blockchain/
Las Vegas, NV
meetup.com/DigitalCurrencyMastermind/
Houston, TX
meetup.com/Houston-New-Currency-Luncheon/
Canada:
meetup.com/Mississaugas-New-Currency-University/
U.K.
meetup.com/One-Coin-The-Bitcoin-Killer/
Glasgow
meetup.com/ONE-DREAM-TEAM-SCOTLAND-DIGITAL-CURRENCY/
Switzerland
meetup.com/Wallisellen-OneCoin-Krypto-Currency-Meetup/
Germany
meetup.com/Furstenfeldbruck-Onecoin-Kryptowahrung-Meetup/ and
meetup.com/Munchen-Kryptowahrung-ONECOIN-Investment/
Brisbane Australia
meetup.com/OneCoin-Brisbane-and-Gold-Coast/
France
meetup.com/Meetup-Innovation-Rennes/
Nederlands
meetup.com/Haarlem-Amsterdam-OneLife-Meetups/
This is probably a “short list.” I haven’t scrubbed EventBrite and other sites, but these would be good groups to follow and for Authorities and others to attend undercover
Ps. Chris DeRose and JuenSeth WILL be airing the “DISRUPTION” after this weekend 🙂
Labine was gagged by OneCoin management at the London event, I thought that was obvious to everyone.
soooo…. carl wilt has gone and scrubbed his FB page. gone are all the posts and photos which tracked his travels across the US peddling onecoin.
but why are these onecoin USA affiliates shitting bricks all of a sudden? after all, they are the brave pioneers of the new cryptocurrency world, educating the masses one ‘investment’ at a time, right?
@ Tim Tayshun
There is actually a Thomas H. Murrin (Tom Murrin) who resides in Overland Park. He was in Solavei too.
When Tom McMurrain lost his check in Solavei, I think he and others became desperate.
Some people will do anything to keep from actually getting a real job.
The number of NEW MLM Cryptocurrency Ponzi Schemes being launched has reached the Epidemic level.
To my knowledge, none of them have bothered to register with the proper governing authorities to date.
The regulators here in the USA need to take action quickly to save naive investors from losing their money.
Plus, they need to make an example out of the ponzi scammers who are promoting them. Otherwide, when companies like OneCoin crash, the main promoters will just move on to the next Cryptocurrency MLM and start the process all over again.
It appears our favorite scammers in OneCoin have received the memo and are in a panic to remove all of the “OneCoin – best investment ever” posts.
Of course, it’s too late as everything they posted has already been archived for future reference.
Some absolutely crazy figures calculated based on the information given by Onecoin:
Source: kusetukset.blogspot.fi/2016/07/onecoin-circus-in-tokyo-japan-15th-july.html
Keith Bliss, another OneCoin Ponzi Schemer spreading financial destruction across the USA.
Just like Tom McMurrain, Keith posts an ad on his Facebook friends to friends, family and social media contacts that OneCoin is the #1 crypto-currency in Usability in the world.
Yet, he fails to mention that OneCoin/OneLife has yet to register to even do business in the United States!
Where do these people come from?
Prediction: When OneCoin finally runs its inevitable course, Keith and others will not be in a state of BLISS. I truly believe it will be more like the State Penn for some of them.
And rightfully so.
@ MLM Broken
Yes, I’ve seen that FB post, accompanied by advice for US citizens to register overseas.
You really have to wonder at the mindset of these people, crazed by greed, leaving a huge digital footprint with personal details and boasts of how much they’re making.
Sometimes one can begrudgingly admire a clever scammer, but these people are lemmings.
@MLM broken model
I just emailed Mr. bliss last week with a REAM of documents, links, videos, news, National Warnings and Criminal a Investigations which have been officially opened on Onecoin, etc., ABSOLUTELY PROVING THE SCAM, without ANY doubt left.
If this post was recent, I will use the archived email message (which he didn’t respond to) to present to Prosecutors.
I have been doing this recently to some of the top scammers for this purpose, exactly.
Ignorance may be *Bliss, but facts are facts and the FACT that the information sat in his inbox, whether read or unread, should be enough supporting evidence to convict, I would assume.
I got caught – fortunately stopped after the first “package” – and have reported it to my State consumer protection group.
At first it was in the US but started to smell fishy when they “stopped selling in the US”.
Some things to know – they are very anxious about paper trails (I put “one coin” on the purpose line on my check and they scolded me about bank trails.
Later they kept moving the fake money around and it turned out I couldn’t retrieve my money as orinused however I could buy something else and “buy gold” which I “wouldn’t have to declare”. By that point I figured out that the education I got was in how to keep from getting sucked in deeper.
I didn’t lose a lot but there are indeed a great many calls on Zoom (zoomcast) and there are a lot of people in the US being soaked.
A friend suggested this. I’m not listening again. But part of the strategy, like many mlm and pyramids, is to catch you when your guard is down.
I’m embarrassed to have been suckered, but I’m not so embarrassed that I won’t do the right thing about it.
@K – RE: “Paper Trails”
Please contact your local FBI and NY District Attorney’s Office, Bureau of Financial Crimes, and provide them with your paper trail, as well as any info you have on or about your up-line and anyone else you know still promoting this then, or before.
The method of payment, banking details, wire transfer info, etc., will help them FURTHER bust (and possibly open new channels) of where and how the money was laundered.
Question: Can you share the banks or payment method used? Anything related to MoonLearning or its affiliate websites, by chance?
Oz wrote:
The video is still available on the YouTube channel OnecoinPrant.
youtube.com/watch?v=6MLWTxQpF74
PS: A German film studio is looking for a video in which Stan Harris aka “Dr. Breakthrough” promotes OneCoin. Can one of our readers help?