Regulators in Italy have moved to droop the operations of a number of associates of OneCoin, the digital currency funding scheme extensively accused of being fraudulent.
Late final month, the Italian Antitrust Authority, a quasi-autonomous non-governmental group that focuses on shopper safety, said that it had ordered the “precautionary suspension” of the efforts, led by three unnamed people. The Antitrust Authority is funded by Italy’s Ministry of Economic Development.
The Antitrust Authority stated that its investigation of OneCoin – which accelerated in December with a preliminary injunction in opposition to three associates – discovered that many of the cash generated got here from recruitment efforts. Those who participate in the OneCoin scheme buy packages of “tokens” that may later be redeemed on an internet web site or offered to others, who in flip are inspired to seek out patrons of their very own.
The Antitrust Authority stated (in a translated assertion):
“In fact, the bulk of the revenues…derives not so much from the purchase of [the] virtual currency OneCoin but rather by the payment of fees that consumers are requested to bear in the accession to the system, which in time to reach the goal of profit, appear to be required to recruit other consumers. These arrangements appear attributable to the typical dynamics of pyramid schemes.”
The suspension is among the most aggressive strikes up to now in opposition to OneCoin, which has been accused of deceptive patrons by promising huge good points on its eponymous digital currency.
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