OneCoin is a fraudulent cryptocurrency scheme[1][2] conducted by offshore companies OneCoin Ltd, based in Bulgaria and[3] registered in Dubai, and OneLife Network Ltd (registered in Belize), both founded by Ruja Ignatova in concert with Sebastian Greenwood.[4] OneCoin is considered a Ponzi scheme due to its organisational structure of paying early investors using money obtained from newer ones. It was also a pyramid scheme due to the recruiting of investors without providing any actual product.[5] The company maintained its own database of coins rather than using a blockchain and had no mining process which limited its ability to release and circulate coins. Many of the people central to OneCoin had been previously involved in similar schemes and business malpractice.[6] OneCoin was described by The Times as "one of the biggest scams in history".[7]
US prosecutors alleged the scheme brought in approximately $4 billion worldwide.[8] In China, law enforcement recovered 1.7 billion yuan (US$267.5 million) while prosecuting 98 people.[9] Ruja Ignatova disappeared in 2017 when a secret US warrant was filed for her arrest, and her brother, Konstantin Ignatov, took her position at the company. Most of the leaders of the company disappeared or were arrested, though Ruja Ignatova has escaped arrest.[10] Greenwood was arrested in 2018,[11] as was Konstantin Ignatov in March 2019.[12] In November 2019, Konstantin Ignatov pleaded guilty to charges of money laundering and fraud. The total maximum sentence for the charges is 90 years in prison.[13] In 2022 Greenwood pleaded guilty, and in 2023 was sentenced to 20 years for wire fraud and money laundering.[14]
- ^ Morris, David Z. (31 May 2017). "The Rise of Cryptocurrency Ponzi Schemes". The Atlantic. Archived from the original on 31 May 2017. Retrieved 5 June 2017.
- ^ "Survey: Malaysians Warm Up to Cryptocurrencies". Nasdaq. 2 June 2017. Archived from the original on 2 June 2017. Retrieved 5 June 2017.
- ^ "'Cryptoqueen' brother admits role in OneCoin fraud". BBC News. 14 November 2019. Archived from the original on 14 November 2019. Retrieved 19 November 2019.
- ^ "Vil ikke være politi". Direktesalgsforbundet Norge. 3 March 2016. Archived from the original on 8 March 2016. Retrieved 25 March 2016.
- ^ Bartlett, Jamie (23 June 2022). The Missing Cryptoqueen. Ebury Publishing. ISBN 978-0-7535-5960-4. Archived from the original on 22 January 2023. Retrieved 6 December 2022.
- ^ Rao, Srinith (10 July 2017). "OneCoin fraud: Chargesheet says accused amassed Rs 75 crore". The Indian Express. Archived from the original on 5 July 2022. Retrieved 26 July 2022.
- ^ Bartlett, Jamie (15 December 2019). "The £4bn OneCoin scam: how crypto-queen Dr Ruja Ignatova duped ordinary people out of billions — then went missing". The Times. Archived from the original on 15 December 2019. Retrieved 26 July 2022.
- ^ Frankel, Alison (22 September 2021). "In $4 billion OneCoin fraud, jurisdiction dooms claims against ex-Big Law partner". Reuters. Archived from the original on 26 July 2022. Retrieved 26 July 2022.
- ^ Yang, Yingzhi (29 May 2018). "China prosecutes 98 people, recovers US$268 million in OneCoin cryptocurrency investigation, report says". South China Morning Post. Archived from the original on 29 May 2018. Retrieved 29 May 2018.
- ^ Marson, James (27 August 2020). "OneCoin took in billions. Then its leader disappeared". Financial News. Archived from the original on 18 September 2020. Retrieved 27 August 2020.
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