OneCoin a “fraud company” according to Indian cyber crime police
Cyber crime police in Hyderabad, India have apprehended the owner of 3G Coin.
BM Jagadeesha, was arrested in Bengaluru by the Cyberabad cyber crime team on July 16 and is now on remand.
Jagadeesha’s setup at 3G Coin was typical of many Indian-based MLM underbelly schemes.
According to Cyberabad police, Jagadeesha used a fake names to register 3G Coin in Germany. 3G Coin claimed its fictitious management team were based in Germany, England and Wales.
In exchange for an investment of up to 10,000 EUR every three months, 3G Coin affiliates were given 3G Coins.
3G Coin was a Ponzi points cryptocurrency, the value of which was determined by 3G Coin.
Like most cryptocurrency MLMs, 3G Coin compared itself to bitcoin and claimed the value of 3G Coin would increase by 180% in two years.
3G Coin affiliates also earned direct and indirect commissions when recruited affiliates invested.
Jagadeesha used five bank accounts to launder invested funds, with at least one account opened in the name of a deceased individual.
In what is the first cryptocurrency crime case lodged in Hyderabad, Jagadeesha has been charged with cheating, forgery, fraud, impersonation and breach of trust.
“People should not get tempted if they are offered enormous amount of profit because there is no such company which can earn 180 times profit in two years,” warned Md Riyazuddin, inspector of police (cyber crimes), Cyberabad.
Police said there are some other websites like wowcoin, onecoin, richcoin, litcoin that operate and function on the same lines.
“These websites claim to be similar to Bitcoin which has become successful to some extent,” said Riyazuddin.
These fraud companies take advantage of Bitcoin’s success and try to lure investors, he added.
Riyazuddin’s familiarity with OneCoin and WowCoin suggest India’s cyber crime police are aware of the two MLM Ponzi schemes.
Whether they are actively investigating OneCoin and Wowcoin however is unclear. Whereas Indian police were able to shut down 3G Coin, both OneCoin and WowCoin are not operated from within India.
BehindMLM reviewed OneCoin back in September 2014 and concluded it was a Ponzi points cryptocurrency scheme.
Other than investment amounts, the inhouse value of OneCoins and potential investor losses increasing and withdrawal difficulty increasing, nothing much has changed.
WowCoin (operating as Wow Digit) was reviewed earlier this month. Similar to OneCoin, WowCoin is yet another Ponzi points cryptocurrency scheme.