The Italian Competition Authority has announced the conclusion of its investigation regarding One Life Network having provided misleading information in order to lure clients into buying OneCoin cryptocurrency.
The brokerage is being accused of using pyramid sales tactics, with its employees falsely assuring clients that they would be able to buy the cryptocurrency by way of a process called mining after purchasing the training package. Furthermore, the cryptocurrency’s value was alleged to grow following its dissemination. According to the sales pitch, buying a package worth $27,530 would have made the client €3 million within two years. The training package was used to hide the program’s entry fee, as well as to convince more clients of the allure of OneCoin.
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Due to the many pieces of evidence brought by the Antitrust Special Department of the Guardia di Finanza, the ICA has fined One Life Network €2 million, Easy Life Srl €80,000, One Network Services €500,000, and each of the three other registrants and €5000.
OneCoin has had numerous run ins with financial authorities and appeared in several warnings. One such instance occurred with the Italian regulatory body Commissione Nazionale per la Societa e la Borsa (CONSOB). The regulator added the cryptocurrency broker to its blacklist for operating without authorization, among 18 other companies deemed untrustworthy.
The firm has been marked by the Austrian Financial Market Authority, and before that the British Financial Conduct Authority. The latter alerted traders back in September 2016 after the brokerage held an event at a hotel in London, where clients were promised that OneCoin would quickly make them rich.