Singapore punishes two for OneCoin involvement

  • In the first case of its kind, the two men were charged for using multi-level marketing schemes to promote OneCoin.
  • OneCoin’s founder’s brother was arrested last month by the FBI.

Two men have been arrested in Singapore for promoting OneCoin, a fraudulent cryptocurrency. In the first case of its kind, the two men were charged for using multi-level marketing schemes to promote OneCoin. The Singapore Police Force (SPF) released the following in a press statement: 

“The promotional tokens could be used to ‘mine’ for OneCoins. Participants who brought in new participants were also entitled to overriding commissions in contravention of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.” 

OneCoin was founded in 2014 by Ruja Ignatova, a Bulgarian entrepreneur. The asset’s business model has an in-built pyramid-like structure and they were able to generate more than $2.5 billion in profits in less than two years. The United States’ Federal Bureau of Investigation (FBI) arrested Konstantin Ignatov, brother of Ruja Ignatova, last month. After the arrest, OneCoin released the following statement:

“We can confirm that Mr. Ignatov is currently in the United States. Based on the information that has been made public by the U.S. authorities, we understand that they are investigating allegations of conspiracy to commit wire fraud. Mr. Ignatov has not been formally charged with a crime and is entitled to a presumption of innocence.”

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