OneCoin & Orientum legality warning issued in Thailand
Thailand’s SEC has issued an investor warning against OneCoin and Orientum.
No digital asset issuer is permitted. No one has filed an application for a license and (details of their business) model with the SEC, so (we are) warn(ing) investors to be cautious.
According to the regulator neither company has registered to offer securities in Thailand, making both MLM offerings illegal.
OneCoin is the notorious Ponzi points scheme launched out of Bulgaria in 2014.
Orientum is a clone spin-off launched by a former top Thai OneCoin affiliate earlier this year.
Investment in OneCoin provides access to worthless OneCoin points. In Orientum it’s ORT and ORTP points.
The Thai SEC warns both digital assets are illegal and ‘not allowed by the SEC under applicable law‘.
The reason behind the SEC’s warning is typical of an unregistered securities cease and desist;
- failure to register with the local securities regulator (the Thai SEC in this case)
- failure to disclose particulars of a business model for approval by the SEC and
- failure to disclose legally required information pertaining to the securities offering to investors
Pyramid schemes may promise or guarantee a high return.
Those who join make more of a return from recruiting others to join the network.
Also, there may not be a clear and credible business plan, platform product, or team, so people should be cautious and avoid investing in such a way.
Following an announcement investors would be unable to cash out, OneCoin collapsed in early 2017.
The Orientum website currently has an Alexa traffic value of over 5 million, suggesting the company failed to gain any traction after launch.