BitConnect Plaintiff Claims Founders Are Associated with OneCoin

Lawsuits filed in the US last week against BitConnect’s promoters and executives have been released to the public. The identities of the individuals behind the alleged Ponzi scheme including director Glenn Arcaro were revealed, and several plaintiffs have claimed that the founders of OneCoin, another large-scale Ponzi scheme, were involved with BitConnect.

Several lawsuits filed earlier this month suggested that Glen Arcaro practically ran the Ponzi scheme as its director of US promotions, overseeing several promoters including Craig Grant and Travon James. The lawsuits accused BitConnect of running a Ponzi scheme using cryptocurrency as a cover. It promised investors a fixed income from their investment, which was never shared with the investors.

The entire organization was structured to benefit early investors by scamming users who joined the organization at a later stage. As the BitConnect Ponzi scheme imploded, the value of the BitConnect coin (BCC) plunged to nearly zero, and people’s life savings and investments were lost overnight.

“BitConnect uses cryptocurrency as a cover for running its Ponzi scheme. For example: a. It provides daily interest on an investment that has no income other than new investor money; b. It artificially increases the value of its cryptocurrency by having new investors in the Ponzi scheme purchase BCC before investing; c. It hides the identity of the owners of this scam by using an offshore company created through a company called Companies Made Simple,” the lawsuit reads.

David Mehmet, a plaintiff in one of the cases against BitConnect, claimed that three executives and founders of Onecoin, a Ponzi scheme that was investigated by the Indian, Italian, German, and Bulgarian authorities earlier this year, are associated with BitConnect. Mehmet claimed that Nigel Allen, the founder of OneCoin, XECoin, Crypto888, and Octacoin, along with two OneCoin founders, Ruja Ignatova and Sebastian Greenwood, oversaw the BitConnect Ponzi scheme as top executives.

Related Post

In January of this year, the Prosecutor’s Office of Bulgaria revealed that the government raided the offices of OneCoin and seized its servers. Although OneCoin is based in Dubai, the Bulgarian government noted that the organization functions through “hundreds of affiliated companies on 4 continents […] [which] are being investigated in England, Ireland, Italy, the United States, Canada, Ukraine, Lithuania, Latvia, Estonia and many other countries.”

Prior to her arrest, Ignatova claimed that OneCoin was not a Ponzi scheme and that it was an educational platform for cryptocurrency investors. Mehmet suggested that BitConnect has similarly started to claim to have operated as an educational platform for cryptocurrency investors, not a lending site.

OneCoin still remains functional in many countries apart from the select few that have cracked down on the Ponzi scheme. BitConnect could continue to operate if authorities fail to identify all of the identities behind the Ponzi.

At one point, BitConnect was valued at over a billion dollars. As such, investors have lost over a billion dollars in this Ponzi scheme, which was quite obviously a scam from the beginning given its fixed return rate. The failure to punish its operators could lead to more BitConnect-like Ponzis in the future.

Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

View Comments

  • Hi! This is kind of off topic but I need some advice from an established blog.Is it very difficult to set up your own blog?I’m not very techincal but I can figure things out pretty quick.I’m thinking about creating my own but I’m not sure where to start.Do you have any points or suggestions? Thanks

  • Camping outdoors Advice Straight From The Professionals Are you presently about to continue on a camping outdoors venture? Are you presently prepared for among the most standard things which might be chucked towards you although camping out? While it may seem you already know the essentials, still it usually takes a little bit of preparation and skill. Keep reading for many terrific direction. Discover your protection prior to it will get darker. Once it will get darker exterior, there are actually it tough to erect a tent, identify wood and make dinner. If you’re used to being in a town where there isn’t any darkness actually, this really is especially vital. Before the moon has gone out, prevent finding yourself in that place find good protection. While it might be that there’s sufficient wood about to help keep a flame heading for many years, you might experience only damp hardwood that won’t burn off. Take some dried up shop and wood it exactly where it keep free of moisture. Attempt to match swimming exposure to your camping expertise. You might miss out on the shower room if you are camping. When investing in by way of eating an orange, save all of your current peels and massage them about your body for a natural pest repellent. If youngsters are camping out together with you.Make sure you do some research also, require a medical course, specifically. Purchase on your own some camping pillows. Regular pillows can be warm and sticky in humid weather conditions. The will likely move moisture content from the atmosphere and increase mildew and mold as well. Cushions made specially for camping out have a defensive coating that inhibits moisture ingestion. When investing in towards the campsite, set up your tent up on the flattest, most level soil to place your tent on. Choosing a sloped or rocky location to camping at could make your keep quite unpleasant. Always set down a tarp to be able to end h2o from entering into your tent. Camping is actually a neat expertise. Involving the beautiful landscapes, the fresh oxygen and the regards to character, you may surely enjoy your time and effort naturally. Should you utilize the recommendations in this post, the next camping outdoors vacation in your preferred area might be soothing and pleasant.

  • Wonderful work! That is the kind of info that should be shared around the internet.Disgrace on the seek engines for no longer positioning this submit upper!Come on over and talk over with my site . Thank you =)

  • Hello There. I discovered your weblog the use of msn. That is a really well written article.I’ll be sure to bookmark it and return to read extra of your useful information. Thanksfor the post. I will certainly comeback.

  • Hey! This is my first visit to your blog!We are a group of volunteers and starting a new project in a community in the same niche.Your blog provided us valuable information to workon. You have done a wonderful job!

  • My brother suggested I might like this web site. He was totally right.This post actually made my day. You cann’t believe simply how much time I had spent forthis information! Thanks!

  • I like what you guys tend to be up too. Such cleverwork and coverage! Keep up the very good works guys I’ve added you guys to my blogroll.

  • Hmm is anyone else having problems with the pictures on this
    blog loading? I'm trying to determine if its a problem on my end
    or if it's the blog. Any suggestions would be greatly appreciated.

  • Great ? I should certainly pronounce, impressed with your site.I had no trouble navigating through all tabs and related information ended up being truly simple to do to access.I recently found what I hoped for before you know it atall. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme .a tones way for your customer to communicate.Excellent task.

Share
Published by
Joseph Young

Recent Posts

A Guide to Authentication Methods (Infographic)

Stolen passwords and weak passwords are responsible for over 80% of security breaches in 2018,…

3 weeks ago

How To Boost FPS and Reduce Input Lag in Fortnite

One of the most common questions I get is how I can optimize FPS in…

3 weeks ago

Insane! Science Backed Method To Train Your Mouse Aim For FPS Games

If you are looking to improve your aim for your favorite competitive FPS title, chances…

1 month ago

Find Fortnite Clan – A Directory of Top Fortnite Clans

Are you looking for a Fortnite clan or team to join? Chances the answer is…

1 month ago

Find Valorant Clans and List Your Own Team for Free

Now that Valorant has been out for quite some time, the players that are looking…

1 month ago

The Lonliness Economy

Chronic loneliness can shorten lifespan by as much as 20 years - more than alcoholism…

2 months ago

This website uses cookies.