Things continue to go from bad to worse for OneCoin. As if the Ponzi scheme had not gotten enough attention from law enforcement officials already, regulators in Luxembourg have also been actively cracking down on this blatant scam. The company got on the regulators’ radar and they subsequently warned the public not to invest in this pyramid scheme. OneCoin is unsupervised in the region and is not supported in any official capacity whatsoever.
Luxembourg Regulators do not Like OneCoin
It is only a matter of time until the fraudulent OneCoin investment program comes to an abrupt halt. With so many active investigations by both regulators and law enforcement agencies, a lot of OneCoin officials must be starting to sweat profusely. If an investigation can confirm that a person is linked to this Ponzi scheme and willingly took advantage of it, he or she may face severe jail time in the future. Right now, the CEO of OneCoin should be thinking twice about what his company is doing exactly and whether or not it is all worth the trouble.
Contrary to what many people still believe, Dr. Ruja Ignatova is no longer the CEO of OneCoin. She stepped down quite some time ago, almost simultaneously to the first official law enforcement investigation related to OneCoin being announced. Fleeing the sinking ship was a smart decision, although she still has a well-documented history with this company. Investigators will gladly take a look at the role she played in defrauding investors over the past few years.
While the recent warning by Luxembourg regulators may fall on deaf ears for the most part, their warning should not be ignored. The Commission de Surveillance du Secteur Financier officially issued a warning on how OneCoin is not supervised, regulated, or approved in any official capacity. This means that anyone in the country investing in this Ponzi scheme finding themselves unable to get their money out will not receive any official help in this regard. However, they could still file a lawsuit against OneCoin and parent company One Life.
Financial regulators all over the world have issued similar warnings on this notorious pyramid scheme. OneCoin has no clear business plan and the origin of its alleged profits remains obscured at every turn. In fact, it seems more and more likely all of those claims regarding the company not making any money other than from new investors’ contributed funds are true. Even though an MLM business structure is perfectly legal, the way this company goes about doing things continues to raise more questions than answers.
Interestingly enough, the OneCoin press team quickly responded to this official warning by mentioning how the CSSF had never contacted the Ponzi scheme. Indeed, it does not see “a reasonable motivation for this warning.” They have a lot of nerve over at OneCoin. One thing they do not have in abundance is legitimate proof of people getting their money out of this MLM scheme other than by purchasing One Life products and services. There is no evidence of their so-called blockchain or non-existent digital currency.
It would be in the best interest of OneCoin to simply shut down and refund all investors. Otherwise, these people will keep irking regulators and law enforcement agencies all over the world. Italian authorities already fined the company 2.59 million euros, but the investigation is far from over. Things will get very ugly real fast for OneCoin and anyone associated with or invested in this program. If it sounds too good to be true, it usually is. OneCoin is a perfect example of how such empty promises need to be avoided at all costs.
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