A former investor filed a class action suit against the infamous cryptocurrency Ponzi scheme OneCoin recently.
The suit, while filed by one person, was on behalf of every person who was robbed of their money which amounted to nearly four billion dollars. The suit says, “This is a class action on behalf of a class of investors consisting of all individuals and entities who transferred to ONECOIN LTD. any fiat currency or cryptocurrency to invest in a purported digital cryptocurrency called “OneCoin” and who suffered financial injury as a result thereof. Upon information and belief, the financial harm caused by ONECOIN LTD.’s fraudulent investment program exceeds Four Billion Dollars ($4,000,000,000.00).”
The suit further added that, despite the fancy sounding jargon and technical sophistication, the scam was pretty old-fashioned to its core. Victims were conned into joining the OneCoin trader packages and memberships by promoters, and then the company would pay money to the new investors from the old investors.
Federal Bureau of Investigation (FBI) Assistant Director-in-Charge William Sweeney, Jr said, “OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators. Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators.”
Interestingly, this is not the first time, this coin has gotten in trouble. In October last year, the Thailand Securities and Exchange Commission (SEC) had warned the public against nine ICOs that had not applied for approval but had been attempting to promote and solicit investors on social media platforms such as Facebook and YouTube. They consisted of five tokens and four ICOs. The tokens included, Every coin, Orientum coin, Onecoin and OFC coin, Tripxchain coin, and TUC coin.
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