Global cryptocurrency project, OneCoin, has denied accusations of being a Ponzi scheme via a letter to the Samoa Observer on 14 May. The report published by the news portal talks about allegations from the Central Bank of Samoa and the US Attorney’s Office Southern District of New York that led to OneCoin being announced as a devious Ponzi scheme that scammed investors of millions of dollars guaranteeing them huge profits with little to no risk.
Moreover, an investigation into the company by the US authorities proved a generated sales revenue of about 3.3 billion euros equivalent to about $3.7 billion, with profits of $2.5 billion between 2014 and 2016.
The Many Controversies
The Central Bank of Samoa banned all activities relating to OneCoin in 2018, but the company managed to get a green light for their transaction activity when it was invited to deliver a speech at Samoa’s Worship Center congregation.
OneCoin has vehemently denied the allegations put forth by the Central Bank of Samoa refusing any part in the money laundering from New Zealand to Samoa. In its letter, OneCoin also denied being a pyramid Ponzi scheme, stating that the fundamentals of the company don’t match the model of a Ponzi scheme. The company explained in brief that OneCoin is purely based on a centralized cryptocurrency system with anti-money laundering and KYC implementation, the incorporation of which would prevent any cases of anonymous transactions.
Following the allegations, United States of America launched an investigation on the founders of the company, Konstantin Ignatov and his sister Ruja Ignatova on 6 March in Los Angeles. Out of the two, Konstantin Ignatov has now been arrested on charges of money laundering, theft, and wire fraud. Ruja Ignatova hasn’t been seen since October of 2017 and remains still at large. Apart from Konstantin, there has been the reported capture of several other founders in Singapore, China, and India.