OneCoin Accused of Running a Pyramid Scheme

Head of Legal & Compliance Charged with Fraud

The crypto world were stunned when US authorities charged the head of legal and compliance at OneCoin with fraud and money laundering. What was once a digital currency lauded as a revolutionary development turned out to be nothing but a sophisticated pyramid scheme.

Welcome to the Wild West of Crypto

Crypto is no longer the secluded Wild West it used to be. Governments are increasingly getting involved in this new asset class, and their presence often brings bad news.

OneCoin was based on the blockchain but focused more on empowering “members” to invite new members than on its technological features.

Allegedly, people were collecting funds from a global network worth billions of dollars from investors.

Head of Legal and Compliance Charged With Fraud

The head of legal and compliance was charged for his alleged role as a central figure in carrying out the global fraud-scheme.

He was accused of wire fraud, bank fraud and money laundering in relation to his activities for OneCoin.

This doesn’t come as a complete surprise though. After all, any well-structured pyramid scheme needs somebody at the top to carefully monitor the intricate web of interconnections.

What’s Next?

The latest news confirms that the US authorities have a close eye on cryptocurrencies. And while they have made it clear that they do not intend to ban blockchain-based assets, they are certainly trying to crack down on fraudulent activities in the space.

Lessons Learned

Crypto enthusiasts have been warned to exercise caution and use due diligence when investing in a blockchain-based asset. Before throwing your hard-earned money into a project, it is important to research the team behind it and their track-record.

  • Do your homework – Make sure to research and understand the project before investing
  • Act with caution – Be aware of the risks inherent in the industry
  • Don’t try to turn a quick profit – Investing in crypto is a long-term commitment


OneCoin has been a good example of why it is important for projects in the industry to be held to a high standard. We need more accountability and transparency to prevent further cases of fraud and deception like this one. So, when it comes to crypto, make sure to invest wisely.