Australian Securities Regulator Warns Investors Against OneCoin

Asia Blockchain Review
June 11, 2019

The Australian Securities and Investment Commission (ASIC) warned the public in a notice released this week that it suspects OneCoin “could be involved in a scam,” according to a Cointelegraph report.

ASIC: OneCoin Failed to Secure Necessary Licenses

The warning is the starkest to date to come from the regulator concerning OneCoin, with potential investors advised to avoid dealing with the company. According to the regulator, OneCoin is operating on an unregulated basis and without a license in Australia.

Similar to ASIC’s previous warnings about other projects, the regulator said OneCoin failed to secure the two licenses required to legally offer investment services in the country. In order to operate legitimately, ASIC said the firm requires both an Australian Credit License and an Australian Financial Services License. According to a press release, the commission identified the company as being based in Sofia, Bulgaria.

OneCoin Allegedly Involved in a Ponzi Scheme

Founded back in 2014, OneCoin has been labeled by some analysts as a classic Ponzi scheme. The company has reportedly raised US$3.8 million from investors by promising low-risk, high-reward investments.

While a senior official at the firm has been arrested in recent weeks, the company apparently continues to trade and was still live as of March.

Earlier this month, an investor in OneCoin brought legal proceedings against a number of people and entities linked to the project, which was described as fraudulent.

These include brother and sister team Ruja Ignatova and Konstantin Ignatov. Both face charges including wire fraud and money laundering. Konstantin Ignatov has already been arrested in connection with OneCoin. The suspects have denied allegations of operating a “hybrid Ponzi-pyramid scheme.”


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
GSMA Hong Kong Expresses Positive Outlook for Blockchain
Paul Ulrich, Senior Policy Manager of APAC, GSMA Hong Kong, revealed that developing countries acros...

August 22, 2019

India’s Reliance Jio Unveils Its Massive Blockchain Network
Reliance Jio will install across India one of the largest blockchain networks in the world “with ten...

August 22, 2019

Mosendo, the Final Piece of the Cryptocurrency Payments Puzzle
We kick off the interview series with Clayton Roche, the Head of DeFi with Mosendo and the community...

August 21, 2019

Escalating Protests in Hong Kong Reinforce Bitcoin’s Safe Haven Status
Demand for Bitcoin is surging as more people look to reliable safe haven currencies in the face of e...

August 21, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us