Latvia’s financial markets regulator, the Financial and Capital Market Commission (FCMC), has issued a second warning that the global MLM cryptocurrency scheme OneCoin is a financial pyramid (Ponzi scheme).
The warning from earlier in December is the second the watchdog issues, after the first one earlier this year. According to the FCMC, OneCoin promotes itself through social networks and on OneCoin seminars, in which members of the public are solicited to invest in “financial transactions with unlicensed providers”. The regulator noted that investing with unlicensed and unregulated companies is risky and clients should be extremely cautious.
OneCoin is an MLM cryptocurrency fraud that has been operating across the world for a few years now. Its central office is in Bulgaria’s capital Sofia and the mastermind of the scheme is also Bulgarian – one Dr. Ruja Ignatova.
Even though OneCoin has been in the sights of many national regulators, including Bulgaria’s Financial Supervision Commission, Belgium’s FSMA and UK’s FCA. The Bank of Hungary has also warned OneCoin is a scam, while the Swedish gambling watchdog has filed a complaint with the local police.
According to OneCoin’s site, the OneEcosystem consists of ten sections, including One Forex, OnePay, CoinVegas, OneAcademy, CoinCloud, etc. OneAcademy, for example, has 2 101 203
“students” who are taking a six-step educational program, which is supposed to turn them into financial experts. There are courses on econometrics, technical analysis, forex trading, risk management, etc. The prices of the packages vary from EUR110 to EUR 27 500.
The company also claims it has mined 749,970,000 OneCoins and has “ global customer base of millions of people in over 195 countries and six continents and is independent of governments”. Small wonder, considering that OneCoin is on a tour and recently held glitzy events in Zagreb, Tokyo, London, Madrid, Istanbul, Helsinki, Pristina, Romania, Kazakhstan, etc, promising spectacular profits and lucrative payouts for those who bring in more people.