Onecoin

Key Points

• OneCoin is a fraudulent cryptocurrency scheme, operating as a Ponzi and pyramid scheme, defrauding investors of approximately $4 billion globally.

• Founded by Ruja Ignatova and Sebastian Greenwood, it falsely marketed itself as a legitimate cryptocurrency rivaling Bitcoin.

• The scheme lacked a blockchain, mining process, or real product, using a fake database to mimic transactions.

• Key figures, including Ignatova, have faced legal consequences, with Ignatova disappearing in 2017 and remaining on the FBI’s Most Wanted list.

• Associated individuals and entities, such as lawyers and payment processors, are implicated in money laundering and regulatory violations.

• Regulatory bodies worldwide have issued warnings, and legal actions, including asset freezes, continue to target OneCoin’s operations.

Overview

OneCoin was launched in 2014 by OneCoin Ltd. (based in Bulgaria and registered in Dubai) and OneLife Network Ltd. (registered in Belize), founded by Ruja Ignatova, known as the “Cryptoqueen,” alongside co-founder Sebastian Greenwood. Marketed as a revolutionary cryptocurrency to rival Bitcoin, OneCoin claimed to offer investors educational materials on cryptocurrency trading and the opportunity to “mine” OneCoin tokens through purchased packages. In reality, it operated as a centralized Ponzi and pyramid scheme, paying early investors with funds from newer ones and recruiting members without delivering a legitimate product. The company maintained a fake database instead of a blockchain, lacked any mining process, and restricted coin exchanges to an internal marketplace with severe limitations. Described by The Times as “one of the biggest scams in history,” OneCoin generated approximately $4 billion in revenue from 2014 to 2016, exploiting millions of investors worldwide.

Allegations and Concerns

OneCoin faces severe allegations and red flags, including:

• Fraudulent Cryptocurrency Scheme: OneCoin was not a decentralized cryptocurrency but a Ponzi scheme, using new investor funds to pay earlier ones, and a pyramid scheme, relying on recruitment without a real product.

• Fake Blockchain and Transactions: The company maintained a covert database to simulate transactions, with no actual blockchain or mining, deceiving investors about the currency’s legitimacy.

• Money Laundering: U.S. prosecutors allege OneCoin laundered over $400 million, with key figures like Mark S. Scott convicted for laundering funds.

• Regulatory Warnings: Authorities in Bulgaria, Norway, Hungary, and others issued warnings, labeling OneCoin a pyramid scheme and highlighting investment risks.

• Legal Actions: The UK High Court issued a global asset freeze in 2024 targeting Ignatova, Greenwood, and influencers involved. U.S. authorities charged multiple individuals, including Irina Dilkinska, sentenced to four years for fraud and money laundering.

• Deceptive Practices: Educational materials were plagiarized, and the internal exchange (xcoinx) imposed strict limits, preventing most investors from withdrawing funds.

• Leadership Misconduct: Ignatova disappeared in 2017 after a U.S. arrest warrant, reportedly fleeing to Athens with laundered funds. Greenwood received a 20-year sentence, and Konstantin Ignatov pleaded guilty to fraud.

Customer Feedback

Customer feedback on OneCoin is overwhelmingly negative, with no credible positive reviews due to its fraudulent nature. Victims, ranging from sophisticated to lay investors, report significant financial losses. Specific examples include:

• Negative Feedback: A victim cited in a CryptoSlate report described losing “significant sums” due to OneCoin’s misrepresentations, with no recourse after the exchange shutdown in 2017.

• Lack of Positive Reviews: No verified positive consumer reviews exist, as OneCoin’s model focused on recruitment rather than delivering value. Promotional materials were driven by paid influencers, later targeted in legal actions.

• Sentiment on X: Posts on X highlight OneCoin as a “notorious scam,” with users noting its collapse and the suffering of millions of investors. One user called it “one of the biggest financial frauds in history.”

Risk Considerations

OneCoin poses extreme risks across multiple domains:

• Financial Risk: Investors lost over $4 billion, with no mechanism to recover funds due to the scheme’s collapse and asset freezes. The internal exchange’s restrictions ensured most victims could not withdraw investments.

• Reputational Risk: Association with OneCoin, even unknowingly, taints individuals and businesses, as seen with law firm Locke Lord, whose website faced restrictions due to its involvement.

• Legal Risk: Ongoing investigations and prosecutions target OneCoin affiliates, with risks of extradition, asset seizures, and imprisonment for those involved.

• Regulatory Risk: Global regulators, including the UK’s FCA and Bulgaria’s FSC, have cracked down on OneCoin, increasing scrutiny on associated entities like payment processors.

• Operational Risk: OneCoin’s lack of a legitimate product or infrastructure means any engagement with its remnants is futile and likely fraudulent.

Business Relations and Associations

OneCoin’s network includes problematic partnerships and individuals:

• Ruja Ignatova: Founder and “Cryptoqueen,” vanished in 2017, remains on the FBI’s Most Wanted list.

• Sebastian Greenwood: Co-founder, sentenced to 20 years in the U.S. for fraud and money laundering.

• Konstantin Ignatov: Ignatova’s brother, pleaded guilty to fraud and money laundering, incarcerated in the U.S.

• Mark S. Scott: Former Locke Lord lawyer, convicted of laundering $400 million for OneCoin.

• Robert Courtneidge: Former Locke Lord Global Head of Card and Payment Services, implicated in OneCoin transactions and under investigation for money laundering at KBH Andelskasse. CEO of Moorwand Ltd., previously UPayCard, linked to scam payment processing.

• Irina Dilkinska: Head of legal and compliance, sentenced to four years for fraud and money laundering.

• Moorwand Ltd. and ePayments Systems: Payment processors associated with Courtneidge, faced FCA suspensions for anti-money laundering weaknesses.

• Locke Lord LLP: U.S. law firm employed Scott and Courtneidge, criticized for enabling OneCoin’s operations.

Legal and Financial Concerns

OneCoin is entangled in significant legal and financial issues:

• Lawsuits and Prosecutions: U.S. authorities charged Ignatova, Greenwood, Ignatov, Scott, Dilkinska, and others with fraud and money laundering. Scott was convicted in 2019, Dilkinska in 2024, and Greenwood in 2023.

• Asset Freezes: The UK High Court froze assets of Ignatova, Greenwood, and influencers in 2024 to address investor losses.

• Regulatory Actions: The FCA suspended ePayments Systems in 2020 for AML failures, linked to Courtneidge’s involvement. Bulgaria’s FSC warned against OneCoin in 2015, prompting its shift to foreign banks.

• No Bankruptcy Records: OneCoin’s offshore structure (Belize and Dubai) obscures bankruptcy filings, but its operations collapsed after Ignatova’s disappearance.

• Unpaid Debts: Victims are unlikely to recover funds due to the scheme’s fraudulent nature and ongoing asset recovery efforts.

Risk Assessment Table

Expert Opinion

OneCoin represents a textbook case of a predatory financial scam, exploiting the cryptocurrency boom to defraud millions. Its lack of a blockchain, reliance on plagiarized materials, and Ponzi/pyramid structure reveal a complete absence of legitimacy. The involvement of professionals like lawyers and payment processors, such as Mark S. Scott and Robert Courtneidge, underscores how sophisticated scams leverage credible institutions to gain trust. The absence of positive consumer feedback, coupled with global regulatory and legal actions, confirms OneCoin’s malicious intent.

Pros: None. OneCoin offers no legitimate value or redeemable qualities.

Cons:

• Defrauded investors of $4 billion with no recovery path.

• Enabled by complicit professionals, damaging trust in legal and financial sectors.

• Ongoing legal risks for anyone associated, including potential extradition.

• Severe reputational damage for linked entities like Locke Lord and Moorwand.

Cautionary Advice: Avoid any engagement with OneCoin or its remnants, including entities or individuals tied to its operations. Investors should be wary of cryptocurrency schemes promising high returns without transparent blockchain technology. Verify any investment platform with regulatory bodies like the FCA or SEC. For victims, consult legal firms like Mishcon de Reya, which represent OneCoin investors, to explore recovery options.

Key Citations

• Intelligence Line (www.intelligenceline.com): Details on OneCoin’s fraud and Courtneidge’s involvement.

• Inner City Press (www.innercitypress.com): Court documents and emails linking Courtneidge and Scott to OneCoin.

• Le Monde (www.lemonde.fr): Ignatova’s luxury investments post-scandal.

• BehindMLM (behindmlm.com): Courtneidge’s ties to ePayments and OneCoin laundering.

• Finance Scam (www.financescam.com): Courtneidge and OneCoin controversy.

• Wikipedia (en.wikipedia.org): Comprehensive overview of OneCoin’s structure and fraud.

• Investopedia (www.investopedia.com): OneCoin’s Ponzi scheme mechanics.

• IRS (www.irs.gov): Dilkinska’s sentencing and OneCoin’s fraud details.

• CryptoSlate (cryptoslate.com): UK asset freeze and investor impacts.

• X Posts: Sentiment on OneCoin’s fraud and scale.