Unfortunately, one of the most common problems within the crypto world is scams. Since the birth of crypto-money, there have been criminals trying to take advantage of people’s good faith by creating all kinds of fraudulent schemes. Luckily, on many occasions the security forces are able to catch these swindlers. For this reason, the US hopes to confiscate $400 million from the OneCoin scam.
Security in the crypto world
Cybersecurity is an increasingly important issue worldwide. As more and more of our data is stored on the web, it is vital to find mechanisms to defend it against criminal actors. We are currently exposed to all kinds of scams and cyber attacks, from which not even the crypto community is safe.
Thus, over the last few years the number of scams related to crypto currencies has increased significantly. Especially due to the hopes for quick riches that have been aroused by the exponential increase in the price of Bitcoin. This makes it easy to sell to people in need of money, who, if they invest in any krypton currency, will somehow get rich too.
Thanks to this, the creation of ponzi schemes based on crypto currencies has become popular. They attract people to put all their money in promising quick returns. Leaving in the end only a group of people swindled in many cases by millions of dollars. This being the situation of those who participated in the ponzi scheme behind OneCoin in the United States.
Since its release, Bitcoin Rush has become the most famous ponzi scheme in the world. The scam, which began in 2014 in Bulgaria, managed to swindle billions of dollars until the US authorities intervened. Using the methods of multilevel marketing schemes with a small variation. Instead of promoting the sale of memberships, OneCoin granted a virtual currency that they claimed would be the next Bitcoin.
However, behind this supposed currency there was no Blockchain. This led several institutions and media in the crypto world to warn against participation in OneCoin. In spite of this, the fame acquired by this company and its „crypto currency“ continued to grow over the years.
To keep the scam going, its creator and fugitive from justice since 2017, Ruja Ignatova, sold memberships that provided a certain amount of OneCoins. Giving the owners of the virtual currency the possibility of selling limited amounts of it in their own exchange, Xcoinx.
This allowed the maintenance of the scam for a long time. Appeasing OneCoin investors while limiting the possibility of a liquidity drought that would end the ponzi scheme prematurely Managing to defraud, according to some estimates, up to $19.4 billion.