OneCoin Denies Being A Ponzi Scheme In Letter To Samoan Daily

By Prashant Jha

We had earlier reported how the crypto world is abuzz with the allegations of the OneCoin crypto project being a combination of the treacherous Ponzi and pyramid schemes. As per latest reports, however, OneCoin has responded to these claims and allegations surrounding it and has unequivocally denied being a scheme of that sort.

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OneCoin is believed to be a crypto Ponzi scheme that managed to raise funds worth hundreds of millions of dollars from all over the world by baiting gullible investors with the promise of quick profits and low risks of loss. A recent investigation spearheaded by the United States revealed that the founders of the OneCoin project had generated a massive sales revenue worth 3.353 billion Euros or 3.769 billion dollars.

In April, some ministers of Samoa, a small nation in the Pacific invited OneCoin to address a church congregation and this attracted quite a bit of scrutiny owing to OneCoin’s alleged background. The central bank of Samoa banned all activities around the OneCoin scheme last year itself, but the crypto project’s representatives still managed to reach out to the Samoa Worship Centre and pitch their supposedly fraudulent investment instruments.

The Samoa Central Bank then initiated an investigation into the company and it was followed by OneCoin sending in a letter to the publication “Samoa Observer”. In this letter, it vehemently denied seeking fraudulent ends and being a Ponzi scheme. It explained itself as being:

“a centralized, closed source cryptocurrency. The closed system has strict AML and CFT (Anti-Money Laundering and Combating the Financing of Terrorism) policies as well as KYC (Know-Your-Customer) implementation and, as in our case, prevents anonymous transactions.”

OneCoin argues that “by accepting the contract, the user becomes an independent, self-employed business owner” and that automatically exonerates the company of the Ponzi scheme charge.

It also stated the following:

“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.”