On January 17 and 18, police raids took place in OneCoin’s offices, during which the company’s servers were seized. This is the next step in a series of international raids and lawsuits against the highly controversial altcoin. Although OneCoin servers have been shut down, the system itself is still running.
Bulgarian police raided OneCoin offices
The raid was carried out at the request of the prosecutor’s office of the German city of Bielefeld by representatives of the law enforcement agencies of Bulgaria and the European Union. OneCoin founder Ruja Ignatova is a German citizen, but was born in Bulgaria.
As Cointelegraph notes, the OneCoin token, which calls itself “a centralized model that protects the safety of its members and enforces the money laundering, obtained by criminal means ”, in fact, is not a cryptocurrency. It is not a decentralized system, it does not use open source software and does not have a public registry..
The documents and servers were seized from the Bulgarian company One Network Services, which serves as a representative and distributor of OneCoin, as well as 14 other companies. During the raid, 50 witnesses were interviewed, but no arrests were made.
The company is officially registered in the UAE as OneCoin Ltd., but according to a report by the Bulgarian police, the firm operates through “hundreds of controlled companies on 4 continents that are under investigation in England, Ireland, Italy, USA, Canada, Ukraine, Lithuania, Latvia, Estonia and many other countries “.
In addition, in May 2017, a representative of OneCoin was accused of fraud in Kazakhstan, and in July 2017 in India, police arrested 23 people in connection with the fact that OneCoin is an “obvious financial pyramid”.
In August 2017, the Italian Antimonopoly Service (AGCM) called OneCoin a pyramid scheme and imposed on the company fine of 2.5 million euros (this was the first fine received by OneCoin).
Recall that recently another dubious cryptocurrency company Bitconnect announced the closure of most of its services..
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