OneCoin pyramid scheme warning issued by Polish regulator
A year ago Poland’s Ministry of Justice received a public enquiry regarding OneCoin.
The enquiry sought to establish whether OneCoin was potentially beaching Polish banking laws.
A subsequent investigation into OneCoin by the National Prosecutor’s Office uncovered potential breaches of “unfair market practices”.
The investigation findings were forwarded to the Office of Competition and Consumer Protection (UOKiK), who today announced the conclusion of their own investigation.
After a year of investigating OneCoin, UOKiK has concluded it’s a pyramid scheme.
Mark Niechiala, President of UOKiK, described OneCoin’s business model in a September 12th consumer warning as follows:
Every consumer who persuades other people to buy educational packages is rewarded appropriately – a hierarchical structure is created, where payouts are possible, as long as new participants continue to be recruited.
UOKiK warns: the system developed by OneLife Network could be a pyramid because:
-The consumer buys the education package in return for material gain;
-These benefits are based on the introduction of other people into a system operated by OneLife Network.
Niechiala goes on to warn that companies like OneCoin who use ‘illegal practices … may expose a wide circle of consumers to significant financial losses‘.
There is a particularly well-founded suspicion that the system run and Propagated by OneLife Network Ltd. based in Belize City (Belize) … is a prohibited promotional system.
Pyramid schemes are illegal in Poland but whether or not UOKiK will take any further action against OneCoin and local Polish affiliates is unclear.
An accompanying investigation report states that proceedings against OneCoin and OneLife are “in progress”.
Come on Mark Niechiala, President of UOKiK, after a year of investigating all you could come up with is it “could” be a pyramid scheme? Either it is or it isn’t.
All the faithful will pounce on this saying the UOFiK couldn’t find anything wrong with OC.
Eastern European laws are often inadequate to deal with modern economic crimes. Russia had to pass new laws to outlaw MMM, IIRC.
In Peru, The Superintendency of Banking, Insurance and AFP (SBS) has alerted citizens about companies or business schemes (including Onecoin and others) that are raising money from the public without counting the authorization; warning: “do not be fooled by lures of ‘easy money.'”
Source: peru21.pe/economia/conozca-operan-7-empresas-lupa-sbs-estafa-375861
Thanks for the heads up Tim.