Bulgarian law enforcement agencies have raided the offices of Onecoin in Sofia as part of a multinational effort to neutralize what authorities call a “centralized cryptocurrency pyramid scheme”. Three million people may have been defrauded by the company which offers services on four continents, according to media reports. Bulgarian officials were diligent enough to note that Onecoin has nothing in common with the decentralized Bitcoin.
50 People Questioned, No Arrests
Servers, documents and other evidence have been confiscated from Onecoin and about 50 people have been questioned by investigators, according to the official statement. No arrests have been reported so far. Bulgarian prosecutors, national security agents and members of the organized crime combating unit were involved in the joint operation. They acted on request from Germany, where Bulgarian-born “founder and visionary” of Onecoin, Ruja Ignatova, had been taken to court. “Onecoin” payments were banned in the Federal Republic and in 2016 the UK Financial Conduct Authority issued a warning about the company. The Ministry of Interior of Bulgaria released a video of the search in Onecoin’s building:
In just three years, about three million people have subscribed for the educational packages offered by Onecoin, Bulgarian prosecutors announced at a briefing on Friday. The company is suspected of commercial fraud, money laundering and illegal payments. During the press conference security officials clarified for the audience that while Bitcoin is a decentralized system, the “so called cryptocurrency Onecoin” is centralized.
“You can only buy from a company that is part of the International Marketing Association of Onecoin”, the head of Bulgaria’s Specialized Prosecution Office Ivan Geshev said, quoted by Nova. The offices of the Sofia-based subsidiary “One Read More Here