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OneCoin has been in the news ever since it was launched in 2014 – mostly in a negative light, and justly so – as a myriad of countries have already banned OneCoin and labeled it as a fraudulent cryptocurrency and a pyramid scheme.
OneCoin has recently been censured by the Central Bank of Samoa, regarding it as a “hybrid Ponzi-pyramid scheme” that “laundered money through New Zealand to Samoa” and that it has duped many unsuspecting users via churches, no less.
OneCoin representative has come forward to answer the various accusations that the shady company has been charged with and said that its associates are “self-employed business owners” and they are willing to comply with the financial norms made by local governments.
Later the company sent a letter to the Samoa Observer, the largest newspaper group in Samoa published in both English and Samoan, and said that no one has right to give any sort of statement on behalf of the company in New Zealand and Samoa. The statement reads:
“Let it be clear that neither OneCoin nor OneLife companies have organization, representation or employees in Samoa and New Zealand.
“OneCoin is a centralized, closed cryptocurrency. The closed system has strict A.M.L. and C.F.T. (Anti-Money Laundering and Combating the Financing of Terrorism) policies as well as K.Y.C. (Know your customer) implementation, as in our case, prevents anonymous transactions.”
In an effort to shift the discussion and accusations into other legal directions, the company attempts to describe its users as “Independent Marketing Associates” (I.M.A.) rather than consumers; and therefore they are not entitled to enjoy all sorts of consumer protection legislation. With this pretext, OneCoin tries to wash off its responsibility for the financial loss of many, and putting all the blame on the victims themselves.
OneCoin released the following statement:
“We would like to state that the company does not consider it has any responsibility for activities directed by OneLife I.M.A at Samoa and New Zealand. We do care about I.M.A behavior and insist on them being compliant with local regulations.”
Last month, the Central Bank of Samoa issued a press statement based on a “spontaneous intelligence report from the New Zealand Financial Intelligence Unit (N.Z.F.I.U.) regarding the OneCoin operations.” The report connects OneCoin with two types of scam – Ponzi Scheme and Pyramid Scheme, and labeled it as a “Hybrid Ponzi-Pyramid Scheme.”
The Central Bank of Samoa has banned all transactions involving OneCoin and consequently OneCoin has opted for New Zealand’s financial system to carry out its business and money transfer activities. NZ Financial Intelligence Unit also reported that NZ$3.5M (T$6.06 million) was transferred out of NZ.
Previously, the United States, New Zealand and Singapore have warned their citizens regarding the promotion of this disreputable cryptocurrency, while arresting several peers associated with it, and charging them under the countries’ respective Multi-Level Marketing and Pyramid Selling (Prohibition) Acts.