page_title: OneCoin
section_title: Legal issues and criticism
hierarchical_section_title: OneCoin / Legal issues and criticism
caption_attribution_description: English: The main office of OneCoin, located in Sofia, Bulgaria
context_page_description: OneCoin is a Ponzi scheme promoted as a cryptocurrency by Bulgaria-based offshore companies OneCoin Ltd and OneLife Network Ltd, both founded by Ruja Ignatova in concert with Sebastian Greenwood. OneCoin is considered a Ponzi scheme due to its organisational structure and because of the previous involvement of many of those central to OneCoin in similar schemes. It was described by The Times as "one of the biggest scams in history."
  US prosecutors have alleged the scheme brought in approximately $4 billion worldwide. In China, law enforcement recovered 1.7 billion yuan while prosecuting 98 people. Ruja Ignatova disappeared in 2017 near the time a secret US warrant was filed for her arrest and was replaced by her brother, Konstantin Ignatov. Most of the leaders have now disappeared or been arrested, though Ruja Ignatova has not. Greenwood was arrested in 2018, as was Konstantin Ignatov in March 2019. In November 2019, Konstantin Ignatov pleaded guilty to charges of money laundering and fraud. The total maximum sentence for the charges is 90 years in prison.
context_section_description: On 30 September 2015, Bulgaria's Financial Supervision Commission (FSC) issued a warning of potential risks in new cryptocurrencies, citing OneCoin as an example. After the warning, OneCoin ceased all activity in Bulgaria and started to use banks in foreign countries to handle wire transfers from participants.
  In February 2016, the British newspaper Daily Mirror wrote that OneCoin / OneLife is a get-rich-quick scheme scam and a cult, calling it "virtually worthless".
  The company and the scheme is on the observation lists of many authorities; among them are authorities in Bulgaria, Finland, Sweden, Norway and Latvia.  Authorities in many countries have warned of potential risks involved in businesses like OneCoin and undertaken prosecutions against persons linked to OneCoin, including CEO Ruja Ignatova and her brother Konstantin Ignatov.
  In March 2016, The Direct Selling Association in Norway warned against OneCoin, comparing it to a pyramid scheme.
  In December 2016, The Italian Antitrust Authority (Autorità Garante della Concorrenza e del Mercato) "adopted an interim injunction against the company One Network Services Ltd., active in the promotion and dissemination of cryptocurrency OneCoin...", and its representatives in Italy, describing their activities as an "illegal pyramid sales system" ("sistema di vendita piramidale vietato dalla legge"), and ordering them to cease promoting and selling OneCoin in Italy  On 27 February 2017, after concluding their investigation, AGCM banned all activity on OneCoin until further notice.
  In December 2016, the Hungarian Central Bank has issued a warning that OneCoin is a pyramid scheme. And in China, several members and investors of OneCoin were arrested in 2016 and $30.8 million USD of assets were seized.
  In March 2017, the Croatian National Bank (HNB) advised the public to "exercise a high degree of caution" in decisions involving OneCoin, noted that OneCoin operations are not supervised by the HNB, and warned that possible losses will be fully borne by the investors.
  On 23 April 2017, Indian police arrested 18 people in Navi Mumbai for organizing a OneCoin recruitment event. The police attended the event undercover to judge the accusations before they decided to act. Further investigation has been started to reveal the higher levels of the pyramid.  In May, the investigation recovered Rs 24.57 crores ($3.59 million USD) in nine bank accounts.  A further Rs 75 crores ($10.97 million USD) was transferred out before authorities were able to seize it. Beginning of May, two more people were arrested and Rs 24 crores ($3.51 million USD) were seized from bank accounts. A special investigation team was formed with four Assistant Police Inspectors and 15 personnel under Senior Police Inspector Shivaji Awate to follow the money trail for further arrests.
  On 27 April, 2017, Germany's Federal Financial Supervisory Authority (BaFin) issued cease & desist orders to Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize. The Authority concluded that trading in OneCoins was fraudulent "own funds" trading.
  On 28 April 2017, Bank of Thailand issued a warning against OneCoin, stating it was an illegal digital currency and that it should not be used in trade.
  On 29 May 2017, International Financial Services Commission of Belize (IFSC) issued a warning about OneLife Network Ltd conducting trading business without license or permission from IFSC or any other authority. OneLife Network Ltd was directed to cease and desist from carrying on with the illegal trading business.
  On 16 June 2017, the CEO of OneCoin Ltd. claimed OneCoin was licensed by the Vietnamese government, that it was legally permissible to use them as a digital currency and that it was the first cryptocurrency in Asia officially licensed by any government. 20 June 2017 the Ministry of Planning and Investment of Vietnam issued a statement that the document which OneCoin used as proof was forged.  They stated that the document was against the MPI regulations and that the person who supposedly signed the document was not in the position claim
caption: The office of OneCoin in Sofia, Bulgaria in 2016
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