OneCoin Pyramid Scheme: 98 people in China prosecuted over $2 billion scam

OneCoin pyramid scam was recently caught in China. Ever since then, the Chinese authorities have been consistently trying to catch the masterminds of this particular scam. The total amount which is involved in the scam is around $ 2 billion.

Prosecution of culprits:

Recently, 98 people were prosecuted in China pertaining to this very scam. It was actually a cryptocurrency investment scam. It was nothing more than a Ponzi scheme. As a result, the investors were paid from the money which were brought in by the latest investors. Similarly, the Chinese authorities are trying to figure out about other cryptocurrency related scams as well. Initially, Chinese authorities were trying to catch individuals who were involved in the scam related Weika coin, however, during that investigation, they stumbled upon this coin.

The legal process to prosecute these individuals started in September 2017. The individuals managed to deceive people from over 20 different states in China. Many of these people have been sentenced to up to 4 years in prison. There have also been fines ranging from $ 1500 to $ 0.7 million. It clearly indicates that the Chinese authorities are really serious about cracking down on the scams.

Large number of victims:

The number of victims are over 2 million as well. This clearly indicates that the scams are done by quite a few people. Moreover, it is being investigated whether people from any other country have also been deceived or not.

Some of the promoters of this coin in Italy have also been fined billions of euros. Similarly, in India as well, there are some individuals who are involved in the scam. That is why country probe is also on in order to catch the culprits. Only when the culprits from all over the world are caught, such scams will not actually take place in the future. That is this is why joined country Corporation is actually needed in order to ensure that such a scam does not happen again.

Once a strong message is sent across the world that the culprits in such scams will not be left alone, it will be a strong discouragement for many of the other fraudulent companies who are trying to gather more and more money with the help of ICOs. Clearly, the Chinese authorities are at the forefront when it comes to sending in such a strong message. This will certainly discourage future scam artist from driving the investment of people in the name of cryptocurrencies.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
Peter Schmidt is a journalist focused on latest technologies in banking. Peter Schmidt is a senior writer and video host at TheOofy. He also hosts a podcast about tech finance. Previously, Schmidt was a finance reporter for Mashable and has been a contributor at APA, Fortune and Forbes. Schmidt has a Master's in Journalism from Heidelberg University.