The OneCoin scam was among the world's biggest crypto-scam that hit the digital world this year.
As it turns out that the multi-billion dollar cryptocurrency built by Dr Ruja Ignatova was nothing more than a pyramid scheme. Back in March, Ignatova, the founder of OneCoin, was charged by US for securities fraud, wire fraud, and money laundering, but as yet is not under arrest.
Back in 2015 Ignatova build a team of Multi-Level-Marketers, which turned out to be a success from the beginning.“We made in our first month almost 90,000 euros out of nothing,” said Igor Albus, one of the world's highest-earning Multi-Level-Marketers and former OneCoin top seller to BBC Speaks.
Talking about the working of OneCoin, Igor revealed that the team was made up of thousands of professional network marketers, they would built OneCoin packages and became independent marketing associates; they will then sell packages to other people making money via commission__ 40 percent would come in OneCoin whereas 60pc came in Euros.
So how did Muslims became the target of this scheme? As the lawfulness of the newly emerged cryptocurrencies has been much of a debate among Islamic scholars, Muslims seek Shariah-compliant certificate to carry out investments in such currencies.
Mindful of this, OneCoin publicised their own Shariah-compliant certificate, issued by the Pakistan-based Al-Huda Center of Islamic Banking and Economics, bringing in great relief for British Muslims.
However as it was expected the certificate proved to be fake. “There was no evidence of any research carried on, it was just a blank certificate saying this okay,” said Mufti Mohammad Amjad, a scholar from Bradford.
The mufti then issued a fatwa- a religious ruling, saying that Muslims should not invest in OneCoin.
“OneCoin does not exist so it is a fraud, I would say engaging in OneCoin is not Shariah compliant,” he added. Meanwhile, the Al-Huda Center has since published a press release clarifying that it did not certify OneCoin as Shariah compliant.
If you listen to the podcast “The Missing Cryptoqueen” you find out that Pakistan was disproportionately affected by the #OneCoin scam. I forgot the exact number but I remember my jaw dropping at the amount of money Pakistanis invested. Unfortunately the exchange is still open https://t.co/Opy4Ki3blL
— Lexi Alexander (@Lexialex) October 29, 2019
But the Bulgarian con lady and her Russian mafia gang got a “Sharia certificate” from Pakistan to prove that OneCoin is Halal. I mean that is a whole new level of conning
— Lexi Alexander (@Lexialex) October 25, 2019
Numerous scammers from Pakistan became Top (mis)Leaders in the fraudulent 💩pseudo-cryptocurrency🤡
Pakistan was one of the hardest hit countries for #Onecoin economic fraud.
Please post more info if you find it.
Victim's have created several Support Groups, if interested. pic.twitter.com/dWGhadWuhe
— Tim Tayshun (@ezCoinAccess) October 15, 2019
Even SBP had warned as far back as May 2018, specifically mentioning OnceCoin in a list of cryptocurrencies, " Virtual Currencies (VCs) like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc. or Initial Coin Offerings (ICO) tokens are not legal tender, issued or guaranteed by the Government of Pakistan. SBP has not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan," the circular had said.
As per Amjad people used to recruit their close friends and family into OneCoin which is why a lot of victims might not now go to the authorities, because the people who recruited them into the scheme are family members.
As per reports, British Asians have lost millions of pounds to OneCoin.