OneCoin Fraud Scheme Generates €3.353 Billion in Sales Revenue

A massive fraud scheme known as OneCoin has been uncovered, generating a staggering €3.353 billion in sales revenue between 2014 and the third quarter of 2016 alone.

The Scheme: A Cryptocurrency Scam

The scheme, led by Ruja Ignatova and her co-founder, allegedly used false representations to lure investors into buying OneCoins, which were touted as a cryptocurrency that was “mined” using specialized servers. However, an investigation revealed that OneCoin’s value was not determined by market supply and demand, but rather internally by the company.

The Fraudulent Process

The scheme also involved the creation of a private “blockchain,” which was allegedly used to track transactions. However, investigators found that OneCoin did not have a true blockchain, and instead used fake coins to deceive investors. OneCoins were created out of thin air, without any actual mining process.

The Goal: To Use the Scheme as an Exit Strategy

Ignatova and her co-founder’s ultimate goal was to use the scheme as an exit strategy, with Ignatova writing in an email that they would “take the money and run” and blame someone else for the fraud. The investigation also found that OneCoin-derived funds were laundered through a series of shell companies and bank accounts.

Key Players Charged

In related news, Konstantin Ignatov, Ruja’s brother, has been charged with conspiracy to commit wire fraud in connection with the scheme. Mark Scott, a former partner at a major US law firm, was also charged with money laundering and is currently pending trial.

The Investigation: A Joint Effort

The investigation into OneCoin was conducted by the IRS-CI, FBI, and the New York County DA’s Office, with assistance from the U.S. Attorney’s Office in the Southern District of New York. The prosecution is being handled by the Complex Frauds and Cybercrime Unit and Securities and Commodities Fraud Task Force.

If You’re a Victim or Have Additional Information

If you think you may have been a victim of this scheme or have additional information, please contact the United States Attorney’s Office at 866-874-8900 or by email at USANYS.OneCoin@usdoj.gov.