OneCoin is one of the biggest scams in cryptocurrency history. The project made victims all over the world. As the full scope of this venture only now becomes apparent, it is not unlikely this project will user in a new era of crypto regulation.
It has become apparent the OneCoin scam made a lot of people good money. One of the culprits currently facing a lawsuit goes by the name of Mark Scott.
OneCoin is a Hornet’s Nest
According to the proceeds, he has laundered money on behalf of the OneCoin team. It is believed he helped hide roughly $400m worth of proceeds generated by the notorious Ponzi Scheme.
To do so, Scott funneled the money through offshore bank accounts and investment funds. Interestingly enough, it does not appear he converted any of the proceeds to and from established and respected cryptocurrencies.
While Scott pleads not guilty to the claims, it seems unlikely that statement will hold up. OneCoin netted nearly $4bn in revenue over the course of two years. Most of the funds or their origins were never found ever since.
This court case has attracted the attention of policymakers. They deem now is the time to further issue guidance regarding cryptocurrencies.
The FCA is trying to clamp down a bit on cryptocurrency trading. Their decision to bar the sale of crypto-derivatives in July is only the first step to reach that goal.
Furthermore, the agency is investigating several dozen firms. That list has grown to 87 firms, compared to “just” 50 twelve months ago. Weeding out the nefarious companies is crucial in bringing more legitimacy to this industry.