onecoint pyramid scheme

Scams by creating cryptocurrencies and attracting naive investors to buy packages that can never be sold at the initial price are not exactly new. But the developer of the OneCoin cryptocurrency, Konstantin Ignatov, has taken things much further by creating a pyramid scheme for giving commissions to people who convinced other people to buy OneCoin packages at overvalued prices.

The operating method typical to pyramid schemes has brought billions into the pockets of the OneCoin founder and a bit of profit for unscrupulous participants who cheated their family members, friends or strangers attracted by the promise of making a lot of money very fast.

The fundamental problem of the OneCoin cryptocurrency was rigging the price and sale of a non-existent virtual coin, providing without the transaction system having an authentic implementation of the blockchain technology.

ALSO READ: What is Cryptocurrency and how can you buy Bitcoin, Ethereum, Ripple or Altcoins

What is remarkable is that the OneCoin “business” worked for two years without raising any major suspicion, and the company behind this scam has collected funds of more than $2.2 billion from investors.

According to the U.S. State Department, one of the accompliaces – Mark Scott – has transferred more than $400 million from investors into accounts opened with banks in Ireland and Cayman Islands.

Ruja Ignatova, the sister of OneCoin founder Konstantin Ignatov ( who is currently wanted by the authorities ) is also indicted in this case. The two risk spending up to 20 years in prison if found guilty.

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