Now fully exposed as a fraudulent pyramid scheme, Italian authorities have tagged OneCoin that a Ponzi scheme and imposed a fine of $2.5 million for the company to pay.
Even though Hungary and other nations have only banned or obtained OneCoin to courtroom, Italy has stepped up and become among the first countries to have a hardline stance against the provider.
This is apparently the first case where a government, in this case, Italy’s, acting through its Antitrust and Consumer Protection Authority (AGCM), has imposed a financial punishment contrary to the company that defrauded so many in the first days of cryptocurrency.
A History of Mistrust
OneCoin made plenty of waves early on as it posed as a digital money, enticing many into its strategy together with promises of huge returns. However, this has all unraveled spectacularly as their fraudulent ways have been outed lately.
In late 2016 OneCoin shut down its inner exchange, xCoinx, and it has remained closed, essentially stealing funds from individuals who invested in the Ponzi scheme.
This fraudulent and devious activity led to many nations stepping in to protect its citizens. Hungary, as stated previously, looked to take the company to court while German prosecutors also opened up criminal investigations.
Italy, through its AGCM, announced in December of last year which they, also, would be exploring OneCoin, ordering its affiliates to stop boosting the Ponzi scheme.
Italy Gives OneCoin Thae Boot
Considering that the analysis late last year, Italy’s ACGM has been occupied since they banned OneCoin from the nation in February of this year following wrap things up, announcing the fake electronic money that a “fraudulent Ponzi scheme” based on authorities.
OneCoin disregarded the findings and even tried to deny having ever encouraged their strategy in Italy, but they had been formally banned in Italy in the end of February, and they had been given 10 days to detail a strategy regarding how they’d stop marketing within the nation’s boundaries.
When no reply was forthcoming, the AGCM cautioned OneCoin that they might face a fine of between $10,000 to $5 million for failing to honor. It was uncertain if they reacted to this warning, but at August 10 of this year, the ACGM imposed a $2.5 million fine against OneCoin, at a radical move contrary to the fraudulent Ponzi scheme.
The evidence gathered so far shows that the representation of the advantages in OneCoin, as well as being extremely random, are designed to attract and sign up a large number of consumers, who are required to provide significant economic investment.
This resembles a pyramid sales system which is prohibited by law.
The Final Nail in the Coffin
OneCoin has been publicly outed as a deceitful company for quite a while now, however as an increasing number of agencies and governmental players measure up to take legal actions against them, the passing knell rings louder and louder still.
With present affiliates not able to convert their own OneCoin Ponzi points accounts into money and many leading leaders bailing, affiliate recruitment has shrunk to all time lows.