OneCoin, a Ponzi scheme
OneCoin, a Ponzi scheme has always been promoted as a crypto coin with a private blockchain by Bulgaria-based offshore companies OneCoin Ltd and OneLife Network Ltd. However, recently the company was described as “one of the biggest scams in history” by The Times. The company’s scheme, as alleged by the US prosecutors, has brought in approximately $4 billion worldwide. In fact, in China, law implementation recovered 1.7 billion yuan and executed 98 people. Ruka Ignatova, the founder of OneCoin, disappeared in 2017 when a secret US warrant was recorded for her arrest and later replaced by her brother, Konstantin Ignatov.
The lawsuit against David Pike, who had linked to the cryptocurrency scam OneCoin has further handed over to New York Southern District Court. The court proceedings have extended till January 12, 2020, according to the latest filings and the order issued in response to the US authorities that launched action against Pike. Nicholas Folly, who is the Assistant United States Attorney, explained that the counsel for both the parties, in this case, continued to engage in discussions concerning a potential pre-indictment disposition.
David R. Pike, who is the Chief Operating Officer of a purported private equity fund management company Fenero Funds, has served to launder the proceeds of an international pyramid fraud scheme which includes the sale of a fraudulent cryptocurrency known as “OneCoin.”
The defendant Pike alleged to have provided materially false, fictitious, and dishonest statements, during a meeting with Special Agents from the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division, and agents of the United States Attorney’s Office for the Southern District of New York. Having falsely stated that he was unaware of the fact that approximately $400 million had transferred into purported private equity funds which he managed was derived from an international multi-level marketing scheme known as “OneCoin.”
Along with Pike, another individual linked to OneCoin goes by the name Mark Scott. He alleged to be responsible for managing approximately €450 million in the Fenero Funds with Ruja Ignatova becoming the ultimate beneficial owner of the money transferred into the Fenero Funds.
According to sources, Mark Scott convicted of conspiracy to commit money laundering and bank fraud in November 2019.