The Scale of the Fraud : OneCoin amassed an estimated $4 billion from investors between 2014 and 2016. Some estimates suggest the total could reach as high as $25 billion due to its global impact. This staggering amount reflects the extensive nature of the scam and its reach into the pockets of countless victims.
No Real Cryptocurrency : Despite being marketed as a cryptocurrency, OneCoin had no blockchain or decentralized ledger. It operated on a centralized database controlled by the company, making transaction verification impossible. This lack of authenticity raised red flags for those familiar with legitimate cryptocurrencies.
The Disappearance of Ruja Ignatova : Ruja Ignatova, the mastermind behind OneCoin, vanished in 2017 after a U.S. warrant was issued for her arrest. Her disappearance added a layer of intrigue to the scam, leading to her being dubbed the "Cryptoqueen." Despite extensive manhunts, her whereabouts remain a mystery.
The Role of Sebastian Greenwood : Sebastian Greenwood, co-founder of OneCoin, was integral to the scheme’s operations. He was arrested in 2018 and later pleaded guilty to charges of wire fraud and money laundering. His involvement highlights the collaborative nature of the fraud and the pursuit of justice for victims.
Plagiarized Educational Materials : OneCoin sold "educational packages" on cryptocurrency trading, ranging from 100 to 118,000 euros. Much of the content in these packages was plagiarized from free online sources, including Wikipedia. This fraudulent practice reveals the deceptive tactics employed to lure in investors.
Global Legal Actions : The OneCoin scam triggered investigations and legal actions worldwide. In China alone, authorities recovered 1.7 billion yuan (about $267.5 million) and prosecuted 98 individuals involved in the scheme. These coordinated efforts underscore the widespread impact of the fraud and the resolve of law enforcement.
The Aftermath and Ongoing Investigations : After OneCoin's collapse, many leaders were arrested or went into hiding. Ruja Ignatova’s brother, Konstantin Ignatov, took over but was arrested in 2019 for money laundering and fraud. Ongoing investigations continue to reveal the extent of the fraud and seek justice for the victims.