Singaporean authorities have charged two men for their involvement in the promotion of the fraudulent cryptocurrency OneCoin.
According to an April 10 report by local daily The Business Times, both persons were using a multilevel marketing scheme to promote the digital currency. Singapore police charged one of the two perpetrators for incorporating a company, named One Concept Pte Ltd, to promote the scheme.
According to a police statement, the platform was selling the fraudulent tokens to the victims who were purchasing online educational courses.
“The promotional tokens could be used to ‘mine’ for OneCoins. Participants who brought in new participants were also entitled to overriding commissions in contravention of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act,” the Singapore Police Force (SPF) said in a press statement.
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The SPF has now handed over the investigation to the Commercial Affairs Department, which specializes in financial fraud cases.
Singapore is not the only jurisdiction where authorities have arrested someone related to OneCoin. The notorious crypto company has grabbed the attention of authorities in many countries including the United States, New Zealand, and its home Bulgaria.
Defrauding Investors for Billions
OneCoin was founded in 2014 by Bulgarian entrepreneur Ruja Ignatova. Though at first glance it looks like any other digital asset, a close examination of the business reveals its pyramid-like structure. According to the US Department of Justice, the company has generated more than $2.5 billion in profits in less than two years.
Last month, the United States Federal Bureau of Investigation (FBI) nabbed Konstantin Ignatov, brother of the founder of the fraudulent company. He was acting as the top leader of the business after the disappearance of his sister from public view since 2017.
The Monetary Authority of Singapore (MAS) has also taken an interest in the shady companies and listed OneCoin and One Concept Pte Ltd on the investors’ alert list. The watchdog has warned the public not to get involved in schemes related to these companies.