The Australian Securities and Investments Commission (ASIC) has recently made an announcement noticing that crypto project OneCoin “could be involved in a scam”.
According to a public release, the Australian financial regulator has published on their website warning their citizens that OneCoin project could be a scam due to the unregistered license in Australia of this crypto company. The company must register for two major licenses if it wants to provide investment services for customers in Australia. However, the ASIC pointed out that OneCoin did not meet these requirements as a business industry because it does not have either an Australian Financial Services license or an Australian Credit license provided by the ASIC.
The ASIC’s website also provides information about the registration place of OneCoin, which is in Sofia – Bulgaria, not Australia.
OneCoin is known internationally as a Ponzi scam. The US government has also “labeled” OneCoin as a fraudulent cryptocurrency business. As reported back on this March, the leaders of OneCoin, siblings Konstantin Ignatov and Ruja Ignatova, were reportedly accused of defrauding billions of dollars from investors of an alleged pyramid scheme as well as other crimes such as money laundering.
Earlier this month, a former OneCoin investor named Christine Grablis has pressed charges against a number of people involved in the multi-billion dollar pyramid scheme, asking for a $130,000 worth in return for the lost fund.
On May 14, the allegedly fraudulent cryptocurrency OneCoin reportedly denied itself from being the “hybrid ponzi-pyramid scheme” project.