Trick 2-Act as a Telecom Operator
- Created a fake cryptocurrency with no blockchain backing.
- Used MLM structure to encourage members to recruit more investors.
- Collected huge sums through ‘educational packages’ but provided no real assets.
2. OneCoin Cryptocurrency Scam (2017)
Steps of the Fraud:
- Promotion of a Fake Cryptocurrency:
- Ruja Ignatova and her associates promoted OneCoin as a legitimate cryptocurrency, encouraging investments through educational packages.
- Multi-Level Marketing Structure:
- The scheme operated as a multi-level marketing (MLM) network, incentivizing members to recruit others with promises of commissions.
- Collection of Funds:
- Investors purchased packages ranging from €100 to €118,000, believing they were acquiring cryptocurrency tokens.
- Collapse and Legal Action:
- Investigations revealed that OneCoin lacked a genuine blockchain and was a fraudulent scheme, leading to multiple arrests globally, including in India.