The Bulgarian trail in a pyramid scheme for billions - the end of OneCoin

08.03.2019 / 22:06

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An international pyramid scheme for billions around the creators of OneCoin was exposed by US authorities who also accused fraud of group leaders.

Accused Chief of the scheme, Konstantin Ignatov, was arrested Wednesday at Los Angeles International Airport. There are charges of fraud against him. His sister - Ruja Ignatova - the founder and original leader of OneCoin was also accused of fraud, money laundering and securities fraud. She is not yet arrested.

OneCoin generated $ 3.8 billion in revenue from the fourth third of 2014 to the third third of 2016. OneCoin's value rose from € 50 cents to € 29.95 in January, with the company claiming that it has 3 million customers worldwide.

But there was no real value behind OneCoin. There was no way investors could track their investments, and the digital asset could not be used for absolutely nothing. The scheme acted as a marketing network where members were paid commissions to refer others to the purchase of encrypted packets.

Rouga Ignatova created OneCoin in 2014 in Sofia, Bulgaria, and headed the organization until her disappearance in October 2017. Her brother was supposed to have taken the post in mid-2018.

The Bulgarian authorities searched the offices of One Network Services EOOD, a Bulgarian subsidiary of OneCoin Ltd in January 2018, as part of an international investigation aimed at detecting whether the virtual currency was used to finance terrorist groups. Prosecutors in Sofia have reported that during the search, OneCoin was also investigated in the UK, Ireland, Italy, the United States, Canada, Ukraine and other countries.

China has investigated 98 people linked to the scheme and has recovered nearly $ 253 million in 2018.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

Trader Martin Nikolov

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The Bulgarian trail in a pyramid scheme for billions - the end of OneCoin

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