The OneCoin Scam: What Victims Should Do in 2023

When it comes to investments, there are many scams out there. It is important to do your research before investing your hard-earned money in something that may not be worth anything. In this blog post, we take a deep dive into OneCoin, a company that claimed to be a cryptocurrency but turned out to be nothing more than a pyramid scheme. Keep reading to learn more about what OneCoin is, how it worked, and what you as a victim can do about it today!

What is OneCoin?

OneCoin was founded in 2014 by Ruja Ignatova. It was presented as a cryptocurrency that would eventually surpass Bitcoin. in value. OneCoin promised huge returns for early investors and used multi-level marketing (MLM) tactics to encourage people to sell memberships to their friends and family members.

In reality, however, OneCoin was never worth anything. It was not backed by blockchain technology and was not listed on any exchanges. The only way to withdraw money was through the company itself, making it almost impossible to withdraw money once invested.

How did the OneCoin scam work?

OneCoin operated through a network of so-called 'affiliates'. These were people who had signed up to sell memberships in exchange for commissions. Commissions were paid when someone bought a membership from an affiliate, and these commissions increased as affiliates recruited more people to the system.

Unfortunately, many people lost a lot of money when they invested in OneCoin. Not only could they not withdraw their profits, but the value of the currency they had acquired plummeted as the scheme began to unravel.

Comparison between MLM scams and the OneCoin scam

MLM scams and the OneCoin scam have many similarities, but there are also important differences. The following table compares the different scams, showing the methods used and the types of products sold.

MLM	The OneCoin scam
Calls to sell	Yes
Earn money by recruiting others	Yes
Focus on selling products and services	No
Promises of big profits	Yes
Fraudulent practices to attract investors	Yes
Investment requirements to reach the next level	Yes
False statements on refunds	Yes
Encouraged to borrow money to invest	Yes
Products that are competitive on the market	No

Why you should avoid companies like OneCoin

Companies like OneCoin are often referred to as Ponzi or pyramid schemes. They promise huge returns and use aggressive marketing tactics to lure people in. When once you have invested, it can be very difficult ? if not impossible ? to get your money out again.

If you're thinking of investing in something, make sure you do your research first. Read reviews and articles from multiple sources before making any decisions. And if something sounds too good to be true? It probably is. Don't be fooled - stay completely away from companies like OneCoin.

OneCoin OneLife raised $4bn

The companies behind this scheme were OneCoin Ltd. and OneLife Network Ltd., founded by Bulgarian citizen Ruja Ignatova who disappeared in 201, but not before raising $4 billion. Onecoin was able to raise billions of dollars from unsuspecting victims by using a multi-level marketing (MLM) structure. This allowed them to spread their message far and wide, as well as keep a steady stream of new investments coming in.

In an MLM structure, affiliates are recruited to sell products or services on behalf of the company. In return for their efforts they receive commissions and bonuses. In most cases, MLM schemes are perfectly legal. But when the product being sold is worthless, as in the case of Onecoin, it becomes an illegal pyramid scheme.

What can victims do?

If you fell victim to the Onecoin scam you may be able to get your money back by filing a lawsuit with the European Commission. the courts. However, this process can be complicated and time-consuming. If you need help getting your money back, consider contacting an experienced lawyer who can help you navigate the legal system and get the compensation you deserve. It is but easier said than done.

Many former OneCoin users have instead switched to using the TA Algo. It's a fantastic Swedish-made trading robot that takes care of investment and risk management for you, minimising losses and maximising gains, so you can safely can work for to make money instead.

Frequently Asked Questions - FAQ - OneCoin 2023