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Net Closes Around Onecoin Scam as German Payment Processor has Assets Frozen by BaFin

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It is anything but surprising to learn Germany’s Federal Financial Supervisory Authority is cracking down on Onecoin and its partners. Ponzi schemes such as Onecoin need to be brought to a halt sooner rather than later. BaFin is taking a special interest in IMS International market Services GmbH, which is an alleged partner of this notorious scam.

Even More Legal Trouble For Onecoin

It is good to see local law enforcements and financial watchdogs take a keen interest in Onecoin and any of its partners. Scamming consumers out of hard-earned money by tricking them into believing Onecoin is a legitimate investment scheme is despicable, to say the least. The notorious Ponzi scheme should have been brought to its knees years ago, but it looks like things are finally heading in the right direction.

BaFin published a severe statement a few days ago, which leaves very little to the imagination. The financial watchdog successfully froze all assets belonging to IMS GmBH, a German company that has very close ties to Onecoin’s German department. It appears the company is involved in money transfer operations related to Onecoin activity, thus making them guilty by association. Any company processing payments on behalf of Onecoin should be held liable for their actions.

To be more specific, IMS is responsible for facilitating the “purchase” of Onecoins on behalf of German residents. The company provides a payment gateway that converts traditional payment methods into Onecoin, even though the latter is not a currency that actually exists. Most people should be well aware by now there is no Onecoin currency, as the platform merely updates SQL databases with random numbers at specific intervals.

Moreover, it appears IMS is found guilty of forwarding the collected funds to entities not presiding in Germany itself. It is a bit unclear which countries are of interest to BaFin in this regard, but since the funds come from German consumers, it is in the institution’s best interest to keep tabs on where the money is going to. Such activities qualify as official money transfer business which requires specific licensing requirements. It appears the company does not have the required license at this stage.

It appears IMS has gotten away with their practices for quite some time now, although BaFin remained rather vague on that front. It is evident the company has piqued their interest at some point, and the institution was ready to fine them for 1.5 million Euros if the company had continued its day-to-day operations. No company in the financial sector wants to be associated with Onecoin, as it will only drag their own reputation down the drain.

This is yet another nail in the coffin for the sinking ship that is Onecoin. The pyramid scheme is slowly but surely starting to unravel. Cutting off payment gateways linked to this scam will eventually force it to collapse. Unfortunately, that also means a lot of investors will lose all of their money. It will be a very tough pill to swallow, but Onecoin is not what investors hope it is by any means.

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