OneCoin Promoters Fined € 2.6 Million in Italy
OneCoin is once again surrounded in the controversy. Its promoters have been fined 2.6 million euros by Italian Antitrust Authority (IAA), a consumer rights watchdog funded by Italian Ministry of Economic Development. The companies involved in promotion of OneCoin were sanctioned in Italy for misleading the investors and using pyramid scheme tactics.
Since its inception, OneCoin has been under intense public scrutiny for having a private Blockchain and using the controversial Multilevel Marketing technique (MLM). Authorities in Germany have banned the scheme completely. In India, regulators termed it a Ponzi scheme and arrested 18 people for organizing its recruitment event. Finland, Sweden, Norway and Bulgaria have OneCoin on their observation list and have warned people of the potential risk, however, they haven’t declared it a criminal activity.
See also: Cryptocurrency 101
OneCoin has been successful in attracting a large number of people from around the world. Despite all the controversy, investors are still joining OneCoin; a Pakistani media personality and an international cricketer Saeed Ajmal have also publicly supported OneCoin.
Contrary to other popular digital currencies, there is no way to use it or invest in it except through its internal members. It is sold as “packages” to the investors, who are often encouraged to find more investors to buy these “packages” from them —the main reason for it being seen as a Ponzi scheme.