OneCoin being sued for being a massive $4 billion pyramid scheme
OneCoin, a cryptocurrency pyramid scheme that once claimed to have its own asset and blockchain, is being sued by an investor, reports The Block.
A massive scam
The pyramid scheme cost investors over $4 billion and Christine Grablis wants to get some of those funds back. Grablis is going after OneCoin with a class-action lawsuit. She plans for it to bring in others who have been affected as well.
Her lawyer, David Silver, spoke to The Block on the matter:
“OneCoin’s principals and promoters duped investors worldwide into a reported $4 billion in investments in a cryptocurrency that never really existed. The size of the scam is staggering, as is the audacity of the people who not only pulled it off but who continue to defend it and promote it to this day.”
According to the publication, Grablis has lost $130,000 after investing in the project back in 2015.
At the time of its inception, OneCoin told its investors that it would be offering some mining pools that users can participate in by buying tokens. That said, these tokens were never mined. It was all a scam. Instead, OneCoin “simply created OneCoins at will without adhering to any of the actual principles of blockchain technology,” according to the complaint.
A giant pyramid scheme
On top of this, OneCoin supposedly asked recruiters to invite new members to the project. From here, they would see a reward of 10% to 25% of each member that buys into the group’s trader package.
As Bloomberg reports, the project brought in 3.4 billion euros ($3.8 billion) from Q4 2014 to Q3 2016. From there, OneCoin’s value went up from 50 euro cents all the way to 29.95 euros. They were also said to have over 3 million participants across the world. But, of course, those members couldn’t do anything since the OneCoin project was a scam.
Since the OneCoin fiasco, Ruka Ignatova, founder of OneCoin, has been charged with wire fraud, money laundering, and securities fraud. However, she isn’t under arrest as of yet.
These scams are only one of many that investors face in the cryptocurrency industry, however. A few others include the Bitcoin Code scam or Bitcoin robots.
The post OneCoin being sued for being a massive $4 billion pyramid scheme appeared first on InsideBitcoins.com.
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