Several months ago, Poland was one of the countries that raised alarm over the menace of OneCoin Ponzi scheme, a scheme peddled as a digital currency to swindle investors.
Polish financial services regulator had informed the public it was investigation OneCoin for suspicious Ponzi scheme traits. Well, the country has finally issued a definitive statement on its findings.
The country through the Office of Competition and Consumer Protection or known as the UOKiK has concluded that OneCoin and its OneLife Network Services programme is a Ponzi scheme because it does not have a genuine product except marketing packages which are turned into Ponzi points.
The UOKiK said (translated):
The President of the Office of Competition and Consumer Protection conducts proceedings against OneLife Network Limited of Belize. The company encourages the purchase of OneLife or OneAcademy educational packages, offering the opportunity to receive material benefits for bringing other people into the system. With the purchased educational package, the consumer receives the tokens. Thanks to them, they can acquire OneCoin cryptowal. Packages cost from 110 euros to 27 500 euros. Every consumer who persuades other people to buy educational packages is appropriately rewarded – a hierarchical structure is created where payouts are possible, as long as the next participants continue to participate.
UOKiK warns: the system developed by OneLife Network could be a pyramid because:
The consumer buys the education package in return for material gain;
These benefits are based on the introduction of other people into a system operated by OneLife Network.
A pyramid-like promotional system. financial pyramid, is forbidden. It depends on the self-financing of consumers within the established group. This means that the participants pay the organizer money. They must also persuade other people to join and those who are willing to participate. Pyramids are especially disadvantageous for those who join at the end because they finance the whole system.
OneCoin might not respond to this latest development in its usual manner.
Several countries have warned their citizens to stay away from the scheme while many OneCoin promoters have also been arrested for money laundering and unregistered financial schemes.