OneCoin Pyramid Scheme
The Story
Dr. Ruja Ignatova launched OneCoin in 2014 claiming it would become 'the Bitcoin killer.' She convinced millions worldwide to invest through multi-level marketing.
Members attended lavish events where Ruja appeared like a rock star, promising everyone would be rich. The company claimed OneCoin was based on blockchain technology.
The truth: OneCoin wasn't a cryptocurrency at all. It had no blockchain. The 'coins' existed only in a centralized database. In October 2017, as law enforcement closed in, Ruja boarded a flight and vanished.
🚩 Red Flags
- No public blockchain to verify
- Could only be purchased through the company
- Promises of guaranteed returns
- Multi-level marketing structure
- No credible cryptocurrency experts endorsed it
⚖️ The Fallout
Ruja remains at large with $100,000 FBI reward. Her brother Konstantin pleaded guilty and cooperated. Sebastian Greenwood received 20 years. Mark Scott, a lawyer who laundered $400 million, was convicted.
📚 Lessons Learned
Exploited cryptocurrency boom and FOMO. Showed how technical jargon confuses rather than enlightens. Multi-level marketing created an army of promoters who were themselves victims.
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