OneCoin suspend Mastercard approvals & withdrawals
Amid reports that OneCoin reopened their exchange after shutting it down for two weeks, now news that the company has suspended issued Mastercards.
Typically used to promote OneCoin on social media and YouTube, the cards had briefly allowed OneCoin affiliates to transfer commissions onto them and then spend the funds.
A message issued by OneCoin to affiliates in the last twenty-four hours reads:
Please note that due to a system upgrade, which we are processing together with the issuing bank of Mastercard OneCoin cards, both the approval of new card requests and the card loading functionality are temporarily suspended.
As soon as the upgrade is completed we will keep you duly notified.
I’m not a banker, but who ever heard of banking systems undergoing indefinite maintenance? Maintenance on banking systems is planned well in advance, with minimal downtime (minutes and in the event of a rare crash, occasionally a few hours).
Coinciding with the pulling down of OneCoin’s exchange, which saw the company freeze withdrawal requests for two weeks, it appears OneCoin’s banking musical chairs look set to continue.
OneCoin’s banking issues over the past twelve months are well documented. At one point the company claimed they were going to open up 180 banks around the world but, along with the claim they were going to register themselves with the SEC, nothing materialized.
Having observed repeated banking issues across a number of Ponzi schemes over the years, I think what’s happening here is pretty obvious.
On or around early February OneCoin’s current bank, possibly the issuer of their Mastercards, gave them notice. The deadline was likely March 1st.
OneCoin failed to secure new banking channels in time, which prompted the suspending of the OneCoin exchange (the defacto payment portal for OneCoin affiliates).
In the first two weeks OneCoin managed to secure new banking channels, but either lost or was unable to maintain a business relationship with their card issuer. Either that or there’s security issues (read: money laundering concerns) regarding integration of OneCoin’s new bank and the issuer of their cards.
All this talk about “systems maintenance” doesn’t add up. It simply doesn’t happen in the finance industry within the timeframes OneCoin are providing (indefinitely as is currently the case with issued Mastercards).
For those unfamiliar with banking issues Ponzi schemes typically go through, the clearest example I can provide is TelexFree.
A Massachusetts investigation into TelexFree revealed it played banking musical chairs in the months leading up to its collapse.
Over two years of operations, TelexFree has employed multiple financial accounts, including domestic and international bank accounts and various online payment processors, to facilitate the fraudulent offer or sale of securities in Massachusetts.
Almost all financial institutions have terminated their relationship with TelexFree after only a few months of business.
Recently, frantic emails between TelexFree management and financial institutions paint an entirely bleak picture of continuing TelexFree financial operations.
TelexFree operations have become a risk that financial institutions are no longer willing to bear.
As described by one financial institution, “no US bank or processor… will accept your [TelexFree] business given that you are on month five of the Visa Chargeback monitoring program.
You are only one of three merchants in the USA on month five so you are a real hot-potato as they say.”
Collectively, the banks that got into bed with TelexFree have had to return millions in stolen Ponzi funds they collected in fees.
But uh yeah, I’m sure the same thing isn’t now happening to OneCoin. Banking maintenance for weeks on end sounds totally plausible.
Now this is rich. No sooner had the ink dried on Ken Labine penning his spirited defense of OneCoin is not a Ponzi, comes this news. Sucks being you doesn’t it Ken.
Come on, tell the good Dr. to at least give you 48 hours after defending OneCoin before she pulls another members can’t get paid stunt. She’s making you look bad.
You might want to see if she has a spare bedroom in her 4.1 Million Euro house she bought for you to stay in. You may need it from all the people you conned into joining OC.
Why would you go build a MLM company when you have to put up with this CRAP.
Gives the whole MLM industry a BAD NAME. PONZI ALL OVER.
Banks that worked with Zeek Rewards are still being pursued by the Receiver:
Zeek Rewards was shut down over three and a half years ago!
Onecoin’s prepaid cardholder agreement:
So Onecoin runs card applications through Zala-Group Ltd. Zala Group is registered to someone named Martin Henry Beckett:
It so happens that a Martin Henry Beckett was in court last Tuesday. Too bad it does not say what is the case about:
Martin Henry Beckett in bankruptcy 2014:
Yeah, US banks, subject to US laws. Good luck with European banks scattered across half dozen countries.
But this should have reached the stage where Europol is keeping an eye on them. There’s warnings issued in multiple countries, which means local authorities are getting interested and you can bet queries have been sent to all their partners across Europe.
This can get nasty when it goes down in flames. In a way, having victims spread throughout the world means physical concentration is low and a mob won’t descend on the organizers (rather unlikely).
Probably to receive an award for outstanding business acumen is my guess…
I’ve been able to ascertain it was a jury trial. The jury retired to consider a verdict last Tuesday.
Don’t have an update for Wednesday yet.
Confirmed it’s a criminal case (T20150911):
Can’t seem to find anything after the jury deliberation on Tuesday.
The issuing bank is in a hidey-hole jurisdiction though…
1. Martin Henry Beckett’s criminal case has had an effect on OneCoin being able to process and use Mastercard cards or
2. FSRC and/or North International Bank and/or Mastercard Latin America & Caribbean shut down their account.
What has got to be maddening to anyone who follows OneCoin on this site is that it’s still going. The only reason it must be going is that people are still depositing funds with them.
Follow the posts here and how many financial institutions have they been through and they are still going. Is it no wonder these operators keep trying.
Anyone want to guess how long this one will run before it ‘finally’ is stopped….
look at the rythm they are now pushing their events and seminars.
it’s getting faster and faster….. there is always a great correlation between the need of fresh money and the rythm of events.
correlation not always does imply causation, but in this case i think the reason is obvious.
The longer this goes on, the worse the assets got mingled, and harder to repatriate any money. IMHO though, we’re down to last 12 months.
Man, Ken Labine is such a looser with a whiny voice.
Friday 18th March:
My guess is between June and December of this year.
It is really going to depend on how many other countries regulatory agencies get involved. Since the vast majority of the victims are in Eastern Europe, that remains to be seen.
I have no doubt you are going to hear more countries regulatory agencies warning their citizens or taking action. This will be what spells the doom of OC. But you can bet that the good Dr. will close shop first, or at least try to before the authorities take any action.
Martin Henry Beckett convicted of drug trafficking – https://behindmlm.com/companies/onecoin/onecoin-mastercard-merchant-part-of-a-drug-gang/
This! There’s always a maintenance window. Everything else are excuses. Or well, part of the scam.
And onecoin now starts to accept bitcoins..
Hi Onecoin is still around and in the Caribbean now. I am from Trinidad.
I will really like someone to do something with them, cuz a lot of people are giving their hard earned money to these ppl…. it’s heart rendering…..
Onecoin is “still” around everywhere… Thousands getting scammed each and everyday..
It is very “heart rendering”…I agree