Sign up for The Paypers newsletter Follow The Paypers on LinkedIn Follow The Paypers on Twitter Follow The Paypers on Facebook
The Paypers, paypers, Insight in payments, News, Reports, Events
 advertisement
Cryptocurrencies

OneCoin contests claims of being a Ponzi-pyramid scheme

Monday 20 May 2019 | 11:17 AM CET

OneCoin has released a statement, arguing it was neither a pyramid nor a Ponzi scheme, after claims that the company run a pyramid scheme in the crypto space.

The Central Bank of Samoa called OneCoin a ‘hybrid Ponzi-pyramid scheme’, as it considers OneCoin ‘laundered money through New Zealand to Samoa.’ Also, it stated that the organisation was looking to exploit residents through local churches. Moreover, several individuals associated with OneCoin have been arrested and charged in China, India, and several other countries.

In response to these claims, OneCoin explained that Ponzi schemes involve generating the revenue of old investors from the investment of new investors, and it doesn’t operate that way. In addition, the company affirmed that it doesn’t require its agents to recruit others in order to earn bonuses, and also that the pyramid scheme regulations are for ‘consumer protection,’ however its agents aren’t consumers, but they are classified as ‘self-employed business owners.’

OneCoin instead suggested it is a ‘centralised, closed cryptocurrency’ with strict AML and KYC rules, which makes it more compliant than decentralised cryptocurrencies.

More: Link
 advertisement
 advertisement
 advertisement
 advertisement