The Chinese government completed a two-year investigation into a massive financial pyramid OneCoin. This is stated in a statement issued may 23.
The Prosecutor’s office of the city district Zhuzhou Hunan province announced that the proceedings were brought in the last of 4 suspects in the case. Just checked, 106, 98 of them were charged.
During the investigation the authorities failed to repay 1.7 billion yuan (about us $266 million) collected in more than 20 provinces throughout China. Persons whose involvement in OneCoin failed to prove, have received fines from 10 thousand to 5 million yuan, as well as prison sentences lasting up to 4 years.
OneCoin organization (Chinese version – Weika Coin) whose server is located in Copenhagen, acted according to the scheme of network marketing. Scammers are constantly attracted new investors with promises of high profit and encourage people to invest large sums of money in your website.
A pyramid scheme had 27 accounts and more than 2 million registered users in China. In total swindlers managed to raise more than 15 billion yuan ($2.3 billion).
Recall that MLM system OneCoin was launched on 20 January 2015. The project is positioned as a “digital currency, based on cryptography”, similar to bitcoin.
That this project has the signs of a financial pyramid, publishing CoinTelegraph warned in 2015. This is the position adopted by the authorities of several countries.
So, in August of 2017 financial regulator of Luxembourg has published a warning to potential investors OneCoin. In the same month, the Italian promoters of the project and paid a fine in the amount of €2.6 million And in January 2018 the Prosecutor’s office of Bulgaria started cooperation with the security forces of Germany and representatives of Eurojust and Europol to neutralize OneCoin.