Suspicious OneCoin stash currently under investigation by Seychelles authorities
A media outlet in Seychelles reports that the Seychelles Police Financial Crimes Unit has received requests to investigate transactions involving a recent transfer of 230,000 Bitcoins between OneCoin founder Ruja Ignatova and several associates.
Victims of the pyramid scheme suspect the stash is one of more than $ 4 billion that coin has been taken from victims or investors in 175 countries. Along with bitcoin, it is reported that Ruja has also exchanged over $ 10 billion worth of money and goods with the associates.
In a statement, Jonathan Levy, counsel for the plaintiffs, said:
“The abuse of Seychelles’ jurisdiction and the involvement of public officials to commit the crypto crime of the century calls into question the use of Seychelles by other crypto firms, including the world’s largest cryptocurrency exchange in the world, Binance, which uses Seychelles extensively as a head office.
If Seychelles does not have the capacity to regulate transactions in crypto assets worth billions, then serious anti-money laundering issues arise over which cryptocurrency companies choose to establish their operations there.
– Complainants’ lawyer
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The request follows complaints in London, Dublin and Brussels against the OneCoin organization by victims after the recent discovery of $ 500 million in OneCoin loot in bank accounts in Dubai.
OneCoin became the name of a cryptocurrency ponzi scheme that promised to change the world and take over from bitcoin, raising at least $ 4 billion from investors around the world before its Bulgarian founder, Ruja Ignatova, did not disappear in 2017.
The company initially operated as a multilevel marketing network (MLM) whose main goal was to invest in a new type of cryptocurrency.
OneCoin has used a referral structure for its many participants to attract new members who actively invest in exchange for interest. Following the success of this strategy, he rolled out OneCoin, which he called a new type of cryptocurrency superior to bitcoin.
The owners of the company have claimed that OneCoin can only be mined on servers that are managed by themselves and that the price of the coin is based on current supply and demand in the market.
The Seychelles Police Financial Crime Unit says it has received “a number of documents” as part of the complaint to investigate OneCoin following the recent move.
They will have to check them all but also highlight the difficulty of investigating crypto and offshore installations:
“We see that the people who have been defrauded have invested on a platform or with the International Business Company (IBC).
IBC has a registered agent in Seychelles. However, transactions do not take place here, so it is difficult for us to prosecute the person who facilitated or committed the crime.
Head of Legal Affairs, Financial Crimes Investigation Unit (FCIU)
Despite the arrest of CEO Konstantin Ignatov in May 2019 and criminal details that continue to emerge about OneCoin, the program continues to attract new members and the “mining” of its coin persists.
RECOMMENDED READING: South Africa’s Mirror Trading International (MTI) was by far the world’s biggest scam in 2020, according to Chainalysis 2021 crypto crime report
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