January 30, 2020

Fake Reviews & News Boosted OneCoin Ponzi Scheme

The news was that the popular company OneCoin allegedly used fake reviews on TrustPilot and Quora to attract its investors. Back in October 2019, we were told about OneCoin fraudulent activities, and now we can only guess how they still managed to collect an incredible amount of 5-star reviews on TrustPilot. It is worth clarifying that 90 percent were positive, and, surprisingly, approximately 400 of the five-star ratings were published within a month.

But for example, Quora analysts concluded that most of the profile posting these positive reviews are likely to be faked. Moreover, DFRLab, likewise, could not confirm the identity of the people behind suspicious profiles on social networks.

How the OneCoin Saga Started

In detail about Onecoin: back in 2014, Ruzha Ignatova opened a new cryptocurrency and allegedly received about $ 4 billion from investors illegally.

But now, 2019, and it turns out that the legitimate digital currency Onecoin has no connection with the blockchain, which makes it just a dummy. Moreover, it all turned out to be Ponzi’s multi-level marketing scheme.

Shortly after, federal prosecutors in the U.S started pressing charges against members of the project, claiming that they had generated upwards of $3.7 billion in profits.

The U.S prosecutors were able to show that the money flowed through an elaborate network of fraudulent private equity investment funds and between international tax havens, from the British Virgin Islands to Ireland, to the Cayman Islands, that obscured the source of the funds. After the scam was uncovered, Ruja Ignatova fled the U.S, following a lawsuit against her and other associates of the scheme in 2019.

Mark Scott, the lawyer behind the scheme, was convicted of washing a sizable portion of that haul and was found guilty of laundering $400 million in October 2019. 

OneCoin Affected Investors Worldwide

OneCoin is one of the most notorious crypto scams in recent times. Since it was uncovered by the media and pursued by law enforcement, side projects of OneCoin have been imploding at a fast rate, revealing just how huge the illegal operation had grown over the years. 

Investigators have since informed the public that OneCoin is an elaborate scam, with warnings coming out of various parts of the world, including Africa and Europe. 

The official OneCoin website has since halted operations since December of last year.

Disclaimer

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.

Get early access

Don’t miss your chance to pre-register today and enjoy all the benefits of early adopters in the future!