Wednesday, 11 April 2018

Bunny Token scam update – Staff cuts

After I made a post revealing that the team behind Bunny Token was full of made-up persons, there has been some severe staff cuts made. Almost everyone of the team has been deleted from Bunny Token's website except the three "founders" of the scheme, Alexander Maslov, Vasilisa Yakubo and Andrei Kazarin. I seriously doubt that these founders of Bunny are real persons either, but for some reason their faces remain for the time being.



Screencap from bunnytoken.com taken 11 April 2018. Click to enlarge.

Most of the made-up persons have also been removed from Facebook. At the moment only some of them still have profile pages available.


Some of the made-up persons have even given their ratings to Bunny Token on Facebook. – Kalla Baars, why only 4 stars? :)




Advisor of Bunny Token: "For me this not a scam."


BunnyToken Advisors. Click to enlarge.

I approached one of the advisors of Bunny Token, Alex Eikster, to ask whether he was aware of being involved. He was kind enough to give me a couple of short answers. 

According to Eikster he is not only aware of being an advisor but also knows the owners of BunnyToken. He doesn't consider Bunny Token as a scam. 

I wrote him about all the red flags and the team of fake persons and also asked who the owner of this business is, but Eikster refused to give any comments. 

Eikster: "I think all information about BunnyToken have on website." 
– Yes, I think I can agree on this. All the information needed is on the website.


Tuesday, 10 April 2018

Ice Rock Mining promises profits for a lifetime

Watching YouTube isn't like it used to be anymore. Getting force-feeded by ads that are promoting shady investing schemes is a new phenomenon. First there was the BunnyToken ad that got my attention, now there's Ice Rock Mining.



Ice Rock Mining has been advertising on YouTube and Facebook. In addition they have published several advertorial pieces and "press releases" on cryptocurrency related websites, for example on Cointelegraph and Merkle. Although these advertorials and press releases are paid content, they are easy to misinterpret as articles published by an author of the website. This is probably the very reason why various scams are nowadays marketing themselves via these platforms.

Ice Rock ad video on Facebook. Here's a link to the ad on YouTube.


Alexa.com shows that traffic to Ice Rock's website has rapidly grown, so the marketing campaign is likely paying off. The ad video on YouTube has already been viewed over 6.7 million times.





Mining for everyone?


Ice Rock Mining claims to produce significant profits from mining Bitcoin in a former Soviet military bunker due the relatively cold temperatures of the bunker caves and low power costs. The CEO of the company, Malik Murzashev, is said to own the facilities.

"Commercial Bitcoin Mining. 
Passive Income. 
Creating a New Capital Market"

There's also a confusing ICO (Initial Coin Offering) attached to all this. The ICO was started January 20th 2018 and includes a token called ROCK2. I have tried to figure this out, but still don't quite understand what is the purpose of this ICO with a future cryptocurrency that has no use outside the system. According to the white paper of the project "ROCK2 token is an Ethereum based token, which gives you the right to own a share of the profit in the project according to the number of tokens you have purchased".


FAQ – WTF?


The mind boggling FAQ section of the website tries to explain things with broken English:

"What's your ROCK2 token do?
ROCK2 token is created to calculate the share of investment in ICO. It will help you to get mined currency via smart contract. It is based on Ethereum ERC20 protocol."
– Yeah, but why do you need this kind of silly token system and what is the purpose of the ICO?

"Once the ICO is closed will your ROCK2 tokens be tradeable and if so where?
The price of ROCK2 on the free market will be very high because these tokens are the One Way ticket to Comfortable existence until the end of your Life. For now, we deal with etherdelta.com, later other big exchanges will list us."
– Comfortable existence until the end of my Life? Come again? And how on earth they can make such promises about the future price of ROCK2? It seems that they are just pulling assumptions out of thin air.

Although mining Bitcoin the company surprisingly isn't paying profits as Bitcoins. Instead ROI is paid via Ethereum, because:
"Payouts will be provided in ETH because we will use Smart Contract based on Ethereum platform, (it can show how much ROCK2 tokens each backer has) so all we need is to convert mined BTC into ETH and put it on the smart contract address. It will make automatic payment according to our business plan."

Turns out they don't even know exactly what does profit mean:
"Can you give me an example in dot point form please on how I will make money if I invest.
50% of the profit will be delivered to our ICO2 backers (holders of the ROCK2 token). Other 50% = 20% electricity and maintenance + 20% REINVESTMENT (buying NEW ASICS and fixing old ones) this part will help to serve and increase the capacity of Ice Rock. And your profit will increase every month + We get 10%"
– Dear Ice Rock Whatever, expenses and running costs aren't profit. This is basic knowledge of economics. Were these texts on the site written by an over-enthusiastic 15 year old?


Who are they?


The team presented on Ice Rock's website seems to be real. I didn't check all of them, but the most prominent ones of them appear on several videos and I don't think they are even using fake personalities.

Despite the project is seemingly transparent the companies behind Ice Rock are quite opaque. Digging up information leads to a p.o. box company who has been incorporated by two offshore companies.

The company in charge of Ice Rock Mining ICO is Woodland Networks L.P., a p.o. box company registered in Northern Ireland July 14th 2017. Woodland Networks L.P. was incorporated by two companies from Marshall Islands, Bondwest AG and Entervox AG, with a capital of 1.000 GBP. There wasn't information available of the managers of these companies.

I didn't manage to find information why a p.o. box company in Northern Ireland is needed for running the ICO. Maybe just to bring credibility to the project?


"Lifetime profit"?


The equipment the company claims to use for mining is Antminer S9, which is a state of art hardware specifically designed for Bitcoin mining. Based on many reviews online, currently Antminer S9 is the best and most expensive hardware available for mining.

Ice Rock published a video on their YouTube channel November 6th 2017 to show the first batch of  Antminers – apparently 25 pieces – they had ordered to be installed in the mining facility. One Antminer S9 costs about 2000 dollars/euros (according to the information by Ice Rock itself the price is 2300 U.S. dollars). So 25 pieces of them costs roughly 50.000 euros.


There are also other video material showing evidence that they actually have some mining equipment and the existence of the mining facility, the former Soviet bunkers. Whether the mining is actually happening, or whether it is to benefit their investors isn't clear.

A video clip published 27th of February 2018 shows a rack of running hardware. There's allegedly 100 pieces of Antminer S9's there. Overall cost of that hardware exceeds 200.000 euros.

Link to the video.


The equipment doesn't come free of charge, so the Antminers accumulate profit only after the investment to the equipment has been covered, not to even mention other expensess. Several reviews about Antminer S9 indicate that it could take several months maybe even close to one year to cover costs of those miners (Ice Rock is implying that their investors get their money back in 5 months). The amount of Bitcoins generated monthly can vary, the value of Bitcoin is highly volatile and the difficulty factor of mining is increasing so estimating profitability of a Bitcoin mining farm is very hard.

The website of Ice Rock has even a calculator for investors to calculate profits of different sums to invest. The FAQ section explains the suspiciously high ROI:
"ROI of 439% per year is easy to explain thanks to 20% monthly reinvestment which will increase the capacity of Ice Rock Mining farm. And we do not spend on cooling systems. That is why we are more profitable than other mining farms."
– Alrighty, what happens if and when you reach your maximum capacity? How many investors can profit from this? How can you ensure a continuous increase of capacity of the mining farm? What happens if and when the operation of the company turns out to be unprofitable? 


The profit calculator

The calculator has a pop-up window that includes the following text:
"Bitcoin mining is a highly volatile investment who's returns can vary drastically on a daily basis. Our calculations were made when Bitcoin price was $14,000 (USD). Other factors that cannot be accurately quantified such as network difficulty and hashrates will impact your returns. Neither we, nor anyone else, can guarantee returns, the above mentioned calculator is for information purposes only." 
– Yet Ice Rock promises profits for a lifetime with a lifetime contract.

You will have a lifetime contract with Ice Rock.



The video ad of Ice Rock is promising "lifetime profits", and yes, they have used caps for the word lifetime.


Conclusion


Ice Rock doesn't seem to limit the number of investors who can invest and profit from the mining. That been said, there's a strong odour of ponzi scam. The amount of investors they have attracted could have already greatly exceeded the capacity, which enables them to share promised profits to the investors.

All things considered I find very alarming the way Ice Rock is promising "lifetime profit" to its investors regardless the very high risks involved. The marketing campaign online and the business model requiring continuous growth shows strong features of a ponzi scam. Generally speaking this is not the way any legitimate business would be marketing itself or doing business.

Monday, 2 April 2018

Bunny Token marketing scampaign

In case you are new to this subject, I recommend reading first my review of Bunny Token scam here.




Although apparently launched only a month ago, Bunny Token seems to have been investing heavily into marketing itself not relying only spreading by word-of-mouth.

Usually these type of schemes use MLM based pyramid building, which is a cheap and very popular way among scams to spread their disease. However, Bunny Token doesn't operate using network marketing. It does have a referral program promising extra tokens which amount to 10 % of the investment made by referral, but other than that it seems to concentrate on preying on gullible individuals.

I find it surprising that Bunny Token has used substantial sums of money in marketing itself. The YouTube ad that I saw has been running since 23 March and it has already well over 1.7 million views. That's about 170.000 views per day. Based on a calculator available on Google AdWords, that requires an ad budget of around 2000 euros per day. There's also another video published a month ago on their channel that has about 1.4 million views.

What comes to the "expert reviews" referred on bunnytoken.com, for instance, publishing a press release such as this on Cointelegraph costs 0.8 BTC - that was worth well over 7000 euros at the time of publishing.

On the Bunny Token website there are also five individuals from porn industry introduced as "The BunnyToken Advisors". Apparently they have all given their permission to use their name and faces to promote the scheme. I would suspect that they didn't agree on this free of charge. Actresses Kira Queen and Eva Berger even appear in Bunny Token's marketing videos.







Considering that the Alexa rankings of bunnytoken.com are sky rocketing, the marketing scampaign of the company might be well worth all the costs after all. Regardless that most of the visitors in their website are likely just kicking the tires, there's a fraction that's gullible enough to invest. When that fraction is from millions of visitors, it's enough to produce profits for the scammers.





Who's behind all this?


The bottom of the Bunny Token's website mentions "Bunny Software LTD. Suite C, Orion Mall,Palm Street, Victoria Seychelles". Since the company is apparently registered in Seychelles, it's likely that we will never learn who is behind the company that launched Bunny Token. The founders presented on the website, Alexander Maslov, Vasilisa Yakubo and Andrei Kazarin appear to be fake persons that really don't exist.

That been said, it's easy for the company to just disappear when its time is due. There will be nobody to reach and nobody to sue.

Thursday, 29 March 2018

Bunny Token scam

I was watching YouTube a couple of days ago when an ad video promoting BunnyToken emerged before the actual video started. The content of the ad video was so scammy that I had to dig out more information about the scheme. I was also baffled if this actually was a scam advertising itself boldly on YouTube.






What is Bunny Token


Bunny Token is marketing itself as the mainstream payment system of the future for adult entertainment industry, providing anonymous and low cost transactions. Considering the somewhat direct approach to the subject, they strangely seem to have forgotten to put the word "adult" before "entertainment industry" on their website.

Bunny Token is based on Ethereum blockchain technology. The Initial Sale of Bunny Tokens launched on the 13th of March, 2018. The sale will continue until the 25th of May, 2018. There is going to be 1 billion tokens issued.

According to bunnytoken.com the company behind Bunny Token is Bunny Software Ltd. which is registered in Seychelles. The website domain has been registered 6 February 2018 by a third party to hide the identity of the actual company/person. The domain has been set to expire already on 6 February 2019 so I guess the registrant doesn't really believe in the business model yet.


The ad







Quoting the ad: 
"The BunnyToken is the cryptocurrency, which will be used by the 103 billion dollar and consistently expanding industry."
– Now, I'm not denying the continuously growing number of wankers, but making such promises of BunnyToken being used by the whole industry is pretty far fetched – especially when prohibited to use in the U.S.A, the mecca of porn.

BunnyToken's terms and conditions: 
Bunny Tokens will not be available for sale to the citizens or residents of the USA, People’s Republic of China, Republic of Korea, Singapore or any other country where where transactions in respect of, or with use of, digital tokens fall under the restrictive regulations or require from company to be registered or licensed with any applicable governmental authorities.

The ad continues:
"The industry is one of the biggest in the world and even a small percentage of its market capital will boost the value of Bunny and lead it to the top." 

– Yeah, sure.



Screenshot from the ad video.



"Starting from the first day of pre-initial token sale, the price of the token will increase 1 percent every single day. This increase will continue until the last day of the initial token sale."
– Well, there's a difference between price and value. You can set whatever price you like, but it isn't necessarily the value.

"Only one billion tokens will be issued. Any unsold tokens will be burned. This will instantly increase the value of remaining tokens."
– Erm, if you manage to sell only one token, how come burning 99.999.999 tokens increase the value of the remaining one?

"Referral program"
– Yes, there's also referral program to help to spread the disease.



The website and the red flags


At first glance everything seems believable. There's a link to a white paper, nice charts, roadmap and even some people from porn industry introduced as "The BunnyToken Advisors". But a closer look at the site reveals some alarming details.

There's "Expert Reviews" section with a showcase of logos of many cryptocurrency related websites. However, for instance the logos of Cointelegraph and Merkle have been linked to a press release published by Bunny Token. I don't think you can label a press release as an expert review.

The white paper of Bunny Token is 42 pages long. I was interested to see if it revealed any porn websites already partnered with Bunny Token, because without partners this porn coin would be utterly pointless. And there it was, a list of porn sites already partnered!




At least some of those webpages were registered by a registrant based in the U.S., which is strange considering that Bunny Token isn't going to be available in the U.S. Goldnude.com didn't even seem to be operational anymore because there wasn't any means of payment available for joining the site.

However, the strangest and the most alarming part is the staff. "Bunny Software has brought together a team of experts with backgrounds in the entertainment industry business, payment systems and blockchain specialist who will make BunnyToken the mainstream digital currency for the entertainment industry." And yes, there is an impressive looking gallery of professionals devoted to Bunny Token's cause. But taking a more thorough look at them reveals that they don't seem to exist outside Bunny Token's website.



Click to enlarge.


It seems evident that if not all then at least majority of them are not real persons. I tried to find several of them on LinkedIn without success. However, I did manage to find Facebook profile pages of almost everyone of the staff – 17 out of those 21 to be precise. Again, everything seemed to be alright at first, but then I noticed some alarming similarities among each and everyone of them had on their Facebook page.

Everyone of the people I found on Facebook had only one picture of him/her. The posts they have made are pretty nonsensical; stock photos, photos of shoes, a black dude, a weapon, puppy or a kitten etc. They seem to post on their Facebook walls very seldomly. Remarkably all these people have been posting with identical date stamps – like someone was just making up stuff for a certain date for several profiles. They all have latest posts dated 9, 8 or 7 of March. Before that they all just happened to have longer period of not posting a thing. On February 23–24 they were all active and posted something. Coinsidental? – No. Much fake? – Yes.

Here's a list and links of all those Facebook profiles I managed to find: 

Alexander Maslov
Vasilisa Yakubo
Andrei Kazarin
Wiebe Van Veen
Ruben Klassen
Ove Skovgaard
Spas Danilov
Nikita Polyakov
Filip Bager
Dori Rubinshteyn
Petter Berg
Anika Dresdner
Garry Stanford
Kristine Lang
Kalla Baars
Monika Sawyer
Maghan Choi
Tamera Brooks
– Although it's obvious without saying, I'd like to point out that the people in any of the pictures of those profiles have likely nothing to do with the scam.

So all in all I think there are enough red flags to conclude that Bunny Token shouldn't be trusted. It's a scam, and yes, it's advertised on YouTube.

Monday, 26 February 2018

DagCoin scam – following the footsteps of OneCoin



DagCoin is a cryptocurrency scam very similar to OneCoin, founded by a former OneCoin promoter Nils Grossberg. I couldn't find any exact date when the scheme was launched but it seems to have taken its first steps in August 2017.


Nils Grossberg, the founder, the CEO

Both OneCoin and DagCoin are marketed via MLM based pyramid scheme and they both have ponzi coins offered as a giveaway attached to purchase of an education package. The education packages sold by DagCoin have prices varying from 100 € up to 25.000 €. The content of each education package is very briefly described on DagCoin's webshop. However, those brief texts don't really justify the price tags included and there are no specific information about the education available. It's of course obvious that no one is buying this for the sake of education but for the coins attached. – Just like victims of OneCoin did.



Chain, chain, chain – Chain of fools

  
The biggest difference between DagCoin and OneCoin is the technology used – or to be more exact, the lack of it. 

OneCoin has claimed to use blockchain technology similar to Bitcoin's. However it's evident that all the talk about OneCoin's blockchain has been total nonsense and it seems that the company was never even meant to launch an actual cryptocurrency. 

DagCoin on the other hand has an actual technology in the background. It appears that the original idea of DagCoin was presented already in 2015 by someone named Sergio Demian Lerner. Here you can read Lerner's first post about DAG (Direct Acyclic Graph). Little did Lerner know that his idea would be later exploited to launch a scam.

One other difference between DagCoin and OneCoin is the way of marketing. Whereas OneCoin has used social media and internet to spread like a virus around the globe, DagCoin uses a much more subtle way. I really think that it's just a necessity to avoid any unwanted attention since most of the main characters marketing DagCoin are former OneCoin scammers.



The lack of cult of personality


There is one more thing separating DagCoin from OneCoin. That is the lack of cult of personality. 

OneCoin has Ruja Ignatova, "Dr Ruja", who has been presented as the founder behind OneCoin cryptocurrency – like Satoshi Nakamoto of this ponzi coin. Among the cult members she is hold in high regard for no apparent reason. She obviously has something that appeals to scam victims. 

DagCoin has Nils Grossberg who really doesn't strike me as a cult leader. I managed to find only couple of short videos of Grossberg giving short speeches in English. Based on those appearances he doesn't appear to be fluent with English, which really doesn't make him more convincing. Other than being the founder of the scheme, I don't see him having much else to offer besides his name and face. 


Nils Grossberg and Kari Wahlroos preparing for DagCoin event in Dubai in February 2018.



The event in Dubai, February 2018


There hasn't been any publicly shared videos of the event so far, so we don't get to see Kari Wahlroos rampaging on stage and threatening to punch those who disagree with him.

However, a Canadian former OneCoin promoter (still allegedly a believer though), Ken Labine, has released some information about the latest news from the Dubai event in a YouTube video published 24 February.


According to Labine:
  • Many merchants signed up to accept DagCoin.
  • PayGety, an active public exchange for DagCoin opening up on March 5th. In addition an exchange named SwipeX coming up.
The most hilarious news is that DagCoin is going to change to a new chain. Due the change of chain the initial supply of DagCoins of 1 billion is going to be increased to 10 billion. Not minding at all about the awkward familiarity of all this Labine is excited to explain:
  • "Our company is moving away from the byteball Dag plateform, and for the last 6 months we have been creating our own technology that will be announced in Panama May 2018."
  • "The total supply goes from 1 billion to 10 billion." 
And as a cherry on top:
  • "All of us will get 10 times the amount of coins we have up to this point."

Now, how come this all sounds so familiar? Oh, yes, OneCoin launched their new "blockchain" too and doubled the coins every one had in October 2016.



Conclusion


It might very well be that the former OneCoin scammers are the ones behind the recent new ideas brought into DagCoin. I suppose they are preying on the people who haven't heard about OneCoin and are gullible enough not to search information about the history of the people marketing DagCoin.

Like OneCoin
DagCoin is a ponzi-pyramid scam. It is combining pyramid scam with ponzi coins that nobody will want to buy from the suckers who'll desperately try to sell them.





Oh, by the way, Kari! – DagCoin is a scam.

Wednesday, 24 January 2018

Global InterGold – Yet again bank account changes



Global InterGold has just recently removed bank account details of one of the two banks they had been able to hold on to in Bulgaria for quite some time. Those two bank accounts had been in use for surprisingly long considering that meanwhile Global InterGold had been changing banks accounts in Philippines like socks, until apparently gave up even trying due continuous banking problems there.

The bank account details removed were the ones of United Bulgarian Bank. The bank account of International Asset Bank is still available but there's also a new addition, a bank account in Piraeus Bank Bulgaria AD. – Let's see how long they can hold on to that.

The account holder of both bank accounts is MD7 Trade Ltd. According to the company's financial statement from 31 December 2016 the initial capital of MD7 Trade Ltd. was only about 255 euros. The owner of the company is Mihails Subotins, an Ukrainian businessman who is pretty much unknown anywhere else but in Greece. There he got his name into headlines after filing 97.2 million euros lawsuit against owner of Aris BC (Basketball Club) Nikos Laskaris accusing him of embezzlement. You can read more about it from here.


Here's updated list of Global InterGold's present bank accounts and their holders:


International Asset Bank
Bank recipient:
International Asset Bank
Bank address:
1303 Sofia, 81-83 Todor Alexandrov Blvd., Bulgaria
SWIFT:
IABGBGSF
Beneficiary:
MD7 TRADE LTD
Beneficiary's address:
Sofia 1407, Lozenets area, No. 103 James Bourchier blvd., 1st floor
Beneficiary's account:
BG55IABG80741400112801

Piraeus Bank Bulgaria AD
Bank recipient:
Piraeus Bank Bulgaria AD
Bank address:
115 E Tsarigradsko Shosse Blvd., 1784 Sofia, Bulgaria
SWIFT:
PIRBBGSF
Beneficiary:
MD7 TRADE LTD
Beneficiary's address:
Sofia 1407, Lozenets area, No. 103 James Bourchier blvd., 1st floor
Beneficiary's account:
BG77 PIRB 9170 1604 6899 88


The bank account of Piraeus bank is used only for money transfers that do not exceed 7000 euros. What comes to the account in International Asset Bank there isn't any limitations for the amount of euros to transfer yet.

Monday, 22 January 2018

OneCoin/OneLife – Official response to recent happenings



OneLife/OneCoin published today a press release about the recent happenings and accusations.

The announcement – signed by no one – of course denies all accusations and goes on to claim that the ongoing investigation and news reports are results of a well organised, purposeful campaign, aiming to damage corporate reputation and destroy its business.

Despite labeled as a criminal organisation by investigating authorities, OneCoin claims having nothing to do with organised crime.


"The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business."
"Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria."

Ruja Ignatova is accused in Germany for being a member of an organised crime group involved in financial fraud. I'm sure the raid to OneCoin's offices in Bulgaria conducted by Europol and German investigative bodies was quite an exceptional measure. However, I don't think raiding offices of a foreign company in another country is done based on any guesses and rumours. It's not a result of a smear campaign but a result of money laundering of 360 million euros in Germany. The raid was done after 2-3 years of investigation by German Police and international co-operation of authorities and banks.



OneCoin preparing for closure of its scam-business due bankruptcy


The most interesting part of the statement by OneCoin is that the company is evidently ready to exploit the situation and already preparing its victims for upcoming total closure of its business due bankruptcy.


"Currently, because of the ongoing investigation, the OneCoin company and its partners are facing immeasurable financial loses. From the offices of our partners was, among other things, confiscated technical equipment that is necessary for their daily operations and its loss will not only lead to financial harm but could very well lead to bankruptcy. This fact is also puzzling and makes us believe that this is not a random coincidence."

That's of course a perfect excuse for the company, and easy to swallow for some cult members. Now the victims can blame governments, police, banks and so called haters instead of the scammers and the ponzi-pyramid company. However, I don't think that they all will be that gullible. I'm pretty sure that there will be lot of victims reporting their local police about getting scammed into this. 

It's not happy Mondays for onecoiners anymore.


Here's the whole statement by OneCoin:

CORPORATE ANNOUNCEMENT 
Jan 22, 2018 | Press Releases 

Dear Members, 

We are publishing the official statement of the OneCoin company regarding the recent media publications without any editorial changes: 

OneCoin official statement regarding publications about exposed criminal group related to OneCoin cryptocurrency 

January 22, 2018 

The OneCoin company would like to officially state that the multiple recent media announcements about an exposed criminal group, engaged in money laundering using the OneCoin cryptocurrency, are untrue and are misleading the public. 

The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business. 

Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria. The company and its partners have always openly declared their willingness to cooperate with regulators, governmental organizations and media, and provide any information that would be useful in clarifying any confusion or suspicion, related to their business activities. Therefore, we have been extremely surprised that we were never approached and asked for clarification, including by any media outlet worldwide, as expected by media striving for journalistic professionalism, fairness and objectivity. A point that we could all agree on is that media is essential to and should be the pillar of a healthy democracy. 

The fact that during the past couple of days we are witnessing completely the opposite, is quite disturbing. We are led to believe that this is a deliberate attack against the OneCoin company, its partners and the OneCoin cryptocurrency, as well as its Founder, Dr Ruja Ignatova. What we currently observe is a calculated media storm, aiming to harm the reputation of the company and its Founder, aiming to hide important characteristics of the OneCoin cryptocurrency, so that it is presented in a completely different way than it objectively should be. 

To clear out all doubts about OneCoin lacking transparency, we would like to point out that this is a centralized cryptocurrency, thus providing higher liquidity and less volatility with a long-term vision and strategy for a stable development, unlike other cryptocurrencies that open and allow possible speculation from traders. It is a well-known fact that cryptocurrencies are usually distrusted, mainly because of their anonymity of transactions and lack of user identification. This makes it possible for criminals to use cryptocurrencies for illegal activities. As far as we know, such activities are not possible with OneCoin – a cryptocurrency that has strived to implement compliance procedures aiming to identify each user (KYC - Know your customer), each business (KYB - Know your business), to prevent money laundering (AML - Anti Money Laundering), etc. All these procedures aim to prevent the usage of OneCoin for dubious activities. In addition, it is also important to note that the centralized model provides the highest level of prevention from possible loss due to malfunction of the user’s hardware, eventual thefts or, for example, due to the ability of ongoing data backups. These facts were never presented by the media and the OneCoin cryptocurrency was not presented objectively as well. 

Currently, because of the ongoing investigation, the OneCoin company and its partners are facing immeasurable financial loses. From the offices of our partners was, among other things, confiscated technical equipment that is necessary for their daily operations and its loss will not only lead to financial harm but could very well lead to bankruptcy. This fact is also puzzling and makes us believe that this is not a random coincidence. 

It is important to clarify that based on the feedback we received from our lawyers, there is still an ongoing investigation, which in all democratic countries means one thing – there is no conclusion made by judicial authority, based on evidence and objectively indicating a ground to make accusations either against a company or against a natural person. During the search of our and our partnering companies’ offices on Wednesday, January 17, 2018, the employees enquired after the charges, the reason for the search and the interviews by officials. So far such information was not provided. 

In conclusion we would like to state that the media coverage of the ongoing investigation, done under doubtful circumstances, lacking a final conclusion of the competent authorities is misinforming the public regarding the facts and evidence collected, further questioning the objectivity of the circulated information in the Bulgarian press, which could be defined as a black PR with dubious goals. 

In order to protect the rights of our employees, clients and partners, the OneCoin company and its partners will inform media representatives and the public of the developments, related to this case.

Friday, 19 January 2018

OneCoin's HQ raided by authorities – a lot of evidence seized

The Prosecutor's Office of the Rebublic of Bulgaria released news today headlined:
"The Specialized Prosecutor's Office participates in neutralizing an international money laundering group through the virtual currency".


OneCoin's headquarters in Sofia


According to the Prosecutor's Office the raid was part of their involvement in an international operation to neutralize a large-scale pyramid structure for commercial fraud, progressive customer recruitment and money laundering by creating and distributing the virtual currency OneCoin.

In addition to the headquarters of OneCoin also offices of 14 other companies involved in the scam have been raided. The raids happened on 17 and 18 January 2017 in the presence of representatives of Europol and the German investigative bodies. The raids led to a lot of material evidence having been seized, including servers and also 50 witnesses have been questioned.

No wonder that OneCoin's fake blockchain (viewable in user accounts) has been stalled for two days now:

 I guess Ruja's laptop that was running the database was seized as well. Good bye coins!

No one has been arrested for now. Presumably during the raids there was no one around responsible for the crimes committed. The people interrogated were most likely staff that OneCoin had hired to run its business, websites and organize events. Ruja Ignatova hasn't been seen for a long time. That been said, the raiders were longing to interrogate "two Bulgarian women with German citizenship". Those women are presumably Ruja Ignatova and her mother Veska Ignatova.



A video by Bulgarian authorities capturing OneCoin's HQ after police had emptied it.


OneCoin is an international criminal organization


The authorities are labeling OneCoin as an international criminal organization, so anyone defending the scheme claiming that the company hasn't done anything illegal can shut their pieholes.

Quoting the Prosecutor's Office:
"Investigators identify the location of the servers in Sofia and the service companies used by the international criminal organization."
"According to the prosecutor's office, besides Dubai's OneCoin Ltd. the network operates through hundreds of affiliated companies on 4 continents."

Finally some international co-operation in Europe against scams! Hopefully this is a start of more efficient co-operating agains ponzi-pyramid schemes in Europe. So far scams have been operating quite freely, and crossing borders has provided almost a secure way to spread scams from nation to nation.


The news about the raid have been covered also in the following media:
Bulgarian Capital
Sofia Globe

Original news release by the Prosecutor's Office of the Rebublic of Bulgaria.



Ignatova accused being a member of an organized crime group in Germany


According to the Chief of Prosecutor's office of Bulgaria, Ivan Geshev, Ruja Ignatova is accused in Germany for being a member of an organized crime group involved in financial fraud.

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