OneCoin a criminal organization, claims Kazakhstan regulator
Back in April Kazakhstan authorities arrested top OneCoin investor Mirsaitova D.K. and several of her local downline.
The case is being handled by the Economic Investigation Service, a department of the State Revenue Committee.
In response to a media enquiry, yesterday the SRC provided an update as to the current status of the case.
Following their arrest, Mirsaitova D.K., his son Mirsaitovym SD and Smagulova TH and Tambetovoy GK are under house arrest.
They are charged with committing fraud by breach of trust and enriching themselves via organized crime on behalf of OneCoin.
The SRC claim Mirsaitova D.K. and his OneCoin downline ‘raised funds from investors under the pretext of the implementation of a cryptocurrency bearing the same name‘.
OneCoin is identified as a “Bulgarian company”.
As per OneCoin’s business model, the company solicits investment into tokens, which are then exchanged for OneCoin points.
OneCoin arbitrarily increase the value of points. Affiliates put in withdrawal requests on the adjusted value and are paid a ROI out of subsequently invested funds.
Based on this business model, the SRC claim
OneCoin is not actually a cryptocurrency and is instead electronic payment units, which are widely used in online money games.
All of the information told to investors regarding the possibility of obtaining super-profits is criminal fiction, with the aim of misappropriating investor funds.
The SRC’s pre-trial investigation tracked funds invested into OneCoin locally since 2015.
The regulator has pegged OneCoin investor losses in Kazakhstan at 2.2 billion KZT ($6.7 million USD), 391 million KZT ($1.2 million USD) of which has been traced to “foreign company” bank accounts.
Despite regulatory investigations across Europe and arrests in several countries, Bulgarian authorities have yet to take any action against OneCoin.