[2017-08-11] One Coin, Much Scam: Italy Brands OneCoin Ponzi...

[Slow death]

One Coin, Much Scam: Italy Brands OneCoin Ponzi, Issues €2.5 Mln Fine

OneCoin, after garnering a lot of support in the early days of cryptocurrency, is still facing the music as Italy becomes one of the first countries to take a hardline stance against the company, demanding a €2.5 mln fine.

The Italian Antitrust and Consumer Protection Authority (AGCM) has branded OneCoin a pyramid scheme, or ponzi scheme.


Troubled times for OneCoin



OneCoin has been under investigation from the AGCM since December last year, where it ordered local affiliates to stop promoting the so-called digital currency.

However, Italy is not the only country that has been protecting its citizens from the financial fraud that seemed to be brewing under OneCoin. Prosecutors in Germany opened up criminal investigations into the company and in Hungary the government also took steps to tackle the ponzi scheme.

Italy’s AGCM has been working hard at shutting down OneCoin's influence in the country as its investigation was based on its suspicion that the currency was a “deceitful Ponzi scheme”.

The investigation wrapped up in February with OneCoin contesting the results, but regardless, the digital currency was banned in Italy at the end of February.


Cease and desist


OneCoin was required to respond to the AGCM with a detailed plan as to what measures it would take to stop all promotion of its company within Italy’s borders, or face a fine.

When there was no response from the ponzi scheme, the AGCM announced that they would incur a fine of between €10,000 to €5 mln. As such, the fine has now been set at €2.5 mln based on findings that OneCoin is a “pyramid sales system” that sold “one coins” to the general public


First fine of its kind


While OneCoin has faced many bans and measures to stop its functioning in different states, the monetary fine imposed by Italy seems to be the first of its kind.


https://cointelegraph.com/news/one-coin-much-scam-italy-brands-onecoin-ponzi-issues-25-mln-fine

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[Granxis]

I was thinking about investing in this coin, frankly I'm very glad that I did not invest, already the infrastructure is very weak, it makes more sense to invest in litecoin instead, there are already 4 safe altcoin.

[btc_angela]

I was thinking about investing in this coin, frankly I'm very glad that I did not invest, already the infrastructure is very weak, it makes more sense to invest in litecoin instead, there are already 4 safe altcoin.

One of my friends also try to invest me and go under him in OneCoin. But my further investigation shows that this is a scam so I didn't. He is still on it and he said that his investment is multiplying. I didn't said to him that I find it as somewhat a scam to not hurt him. But when this news came out, it really proves that something is wrong with OneCoin. Will try to talk to him later and see how's his investment is doing and will put to his article as well.  . Will get his reaction on this.

[Rahar02]

Nice catch and this is why people shouldn't invest on shady coins which more likely to ended as scam.
New ICO and new project should proven their devs team and really legit to gain investors, but another factor to consider is whether the project or those coins will be profitable in the future or dead on arrival. Personally, I won't take a risk to invest precious bitcoin to random altcoins.

[arbitro]

  There's nothing "crypto" about this "coin". It's a ponzi operation for dumb idiots who salivate hearing promises of unbelievable returns, mostly fools who think the word "coin" means it's a competitor to Bitcoin. As most of these scams it slowly turns into a Cult, with brainwashed followers who don't want to attend to reason or hear the truth...

About time this garbage and it's prmoters get what they deserve: PRISON.

[CryptoBry]

This has become a very popular coin but in a bad light kind of way. I have been exposed to this coin because I used to be investing in revshares before and this was always promoted. I never got tempted to part some of my little hoard of Bitcoin because I did my research and there are so many accusations of it being just another scam.

Aside from its compensation plan, what are the factors making OneCoin a scam?