OneCoin Ponzi Scheme: Samoan Central Bank Launches Investigations For Fraud

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OneCoin Ponzi Scheme: Samoan Central Bank Launches Investigations For Fraud

 

Samoan Central Bank is the latest addition to the long list of authorities to launch an investigation into the OneCoin scam.

Samoa’s central bank onto OneCoin scam: Latest country to strike it down

The Central Bank of Samoa has launched an investigation into the notorious OneCoin cryptocurrency investment scheme, which is a Bulgaria based pyramid scheme. OneCoin has been subject to numerous investigations by multiple countries like Italy, Finland and India.

This pyramid scheme has already been fined with 2.59 million euros by Italy in 2017. Now, the Samoan officials are investigating if the country’s people have been defrauded.

Last week, the governor of Samoa Central Bank, Maiava Atalina Ainu’u-Enari told the Samoa Observer, “[OneCoin] is a snare that is used to catch people’s money.” It has also been reported by the local media that Samoan church ministers might be a part of this scheme as well though there is no clarity on the same.

In March, the Central Bank of Samoa has also issued an official warning on its website against OneCoin stating:

“Several cryptocurrency promoters have contacted CBS seeking endorsement for their business and product; however they were not able to satisfy the government’s requirement of providing the relevant information for due diligence purposes. As a result, CBS, on behalf of Government, has refused to endorse such ventures.”

The statement further mentions the risk of cryptocurrency investments as well:

“CBS, as the Regulator for financial institutions in Samoa, does not wish to prohibit new ventures that will benefit Samoa’s public and economy; however, as with every new venture such as cryptocurrency, there are always risks involved.”

Also, read: Nano & Team Faces Class Action Lawsuit, Appeal For A Recovery Fork  

A long list of OneCoin transgressions in multiple countries

A network marketing company, OneCoin is founded by Ruja Ignatova which is promoted as a cryptocoin that has a private blockchain. OneCoin is registered in Bulgaria and Gibraltar but doesn’t have the legal permission to work in a number of countries including the USA.

OneCoin is primarily considered a Ponzi scheme due to its organizational structure and core team members engaged in similar Ponzi schemes in the past. 

The company and its scheme have been under the radar of various authorities worldwide. In 2015, the FSC of Bulgaria cited OneCoin as an example in its warning against potential risks in cryptos. China arrested several of its members and investors and seized its assets in 2016.

In the year 2017, Bank of Thailand issued a warning against OneCoin, Italian Antitrust Authority banned all of its activities in the country and Indian police arrested people involved in OneCoin’s recruiting event.

Bulgarian police raided the company’s office in late January where close to fifty people were taken for questioning. Now, Samoan Central Bank is all set to protect the interests of its people.

How do you think Ponzi schemes like OneCoin can be eliminated from the crypto market?

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Author: Casper Brown

I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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Casper Brown 184 Articles

I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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