By CCN: OneCoin execs are sick of being referred to as a Ponzi scheme. Allegations of ripping off church buildings are false too, they declare.
In a prolonged letter to the Samoa Observer, the cryptocurrency-powered advertising firm defended itself in opposition to what it considers to be false allegations
OneCoin takes challenge with information articles that had been utilized by the Central Bank of Samoa (CBS), which fueled the Ponzi scheme narrative. The CBS has issued clarifications concerning the info it acquired about OneCoin’s operations.
OneCoin is alleged to be concerned in a $three billion pyramid scheme. The Manhattan U.S. Attorney claims that the corporate created a fraudulent cryptocurrency with the intent of defrauding traders. @proskauerhttps://t.co/CQ155s0rBo pic.twitter.com/UkXmqM0Krh
— LexBlog (@LexBlog) May 10, 2019
Denying Pyramid Scheme Allegations
The pyramid scheme allegations stem from a case by which OneCoin was charged with encouraging folks to take a position and promising a revenue. In March, the FBI arrested OneCoin participant Konstantin Ignatov primarily based on allegations that he was considered one of a number of masterminds behind a multi-billion greenback crypto pyramid scheme.
— Jen McAdam (@JenMcAdamGlobal) April 27, 2019
OneCoin has confronted fines and legal actions all over the world – significantly in India, the place 22 promoters have already been charged. Meanwhile, China has additionally levied expenses in opposition to OneCoin promoters, whereas a number of central banks have issued warnings, CCN reported.
That’s not the worst of it. OneCoin was stated to be focusing on people by means of church buildings as a part of its Ponzi scheme.
A task mannequin? 😂 A pyramid scheme arrange by an ex OneCoin advocate, below investigation in Poland with thousands and thousands seized, banned in Nth America. A task mannequin! Stoooop! #dascoin pic.twitter.com/XBTuvZmpiL
— WheresKeith? (@KeithWheres) May 13, 2019
OneCoin: Media, Banks, and Everyone Has It Wrong
OneCoin’s letter printed by the Samoa Observer calls out the CBS for utilizing incorrect info, stating:
“We are contacting you in relation to recent media publications which refer to a statement by the Central bank of Samoa, based on a (quote) “spontaneous intelligence report from the New Zealand Financial Intelligence Unit (NZFIU)”. In this assertion, there are claims that “OneCoin is a “Hybrid Ponzi-Pyramid Scheme” “; that “money was laundered through New Zealand to Samoa”; that OneCoin is focusing on people by means of church buildings.”
They wish to “ensure the legitimacy and objectiveness of the information presented in the mass media” by clearing up “this obvious misunderstanding.” According to the assertion:
“Let it be clear that neither OneCoin nor OneLife companies have organization, representation or employees in Samoa and New Zealand. No one has authority to act or make statements on company’s behalf in Samoa and New Zealand.”
In its protection, the corporate claims it’s not a Ponzi scheme as a result of “OneCoin is a centralized, closed-source cryptocurrency.” They go on to quote anti-money laundering (AML), know-your-customer (KYC) and Combating the Financing of Terrorism (CFT) requirements. They state: “Based on that it is much more compliant than decentralized ones.”
The Central Bank’s Unconvincing Response
The CBS issued a clarification discover about OneCoin, but it surely leaves a lot to be desired in debunking the allegation that OneCoin is a Ponzi scheme, saying:
“Recent queries have sought why these OneCoin promotions and workshops had been solely banned not too long ago. CBS had not too long ago amended its Anti-Money laundering legal guidelines on the finish of June final 12 months. These amendments introduced the Promoters of Digital (Crypto) Currency below our Regulatory oversight. Only then had been we in a position to challenge notices that any cryptocurrency promotion/ workshop required CBS approval.
As solace, it states:
“Please relaxation assured that the function of the Central Bank is to not prohibit companies or cryptocurrency investments; our function is to facilitate and be sure that all the correct processes have been met and that our individuals are properly shielded from shedding their hard-earned cash.”