China to Prosecute 98 Over Alleged $2B OneCoin Scam

According to the prosecutor said that the scheme involved up to 2 million victims
23 May 2018   556

In China, charges have been brought against the last four suspects in the case of the cryptocurrency pyramid, which allowed the perpetrators to collect $ 2 billion, CoinDesk reports.

According to a statement issued by the Supreme People's Procuratorate of China, the prosecutor's office of Hunan Province brought charges against four persons in connection with the case of the crypto "investment" scheme Weika Coin. Outside of China, it is known as OneCoin.

The statement says that the trial began in September 2017, and since that time the proceedings have already gone through three stages. The case totals 98 suspects, which are accused of deceiving investors from 20 Chinese provinces. Some of the accused have already received up to five years of imprisonment and fines ranging from 10,000 to 5,000,000 yuan (1,565 -783,000 US dollars).

According to the prosecutor, in China the scheme has 140 levels and consists of 7 main pyramids, the victims of which were 2 million people. The total amount of funds received from investors, according to the report, is 15 billion yuan (about $ 2 billion). About 1.7 billion yuan ($ 266 million) were returned.

The fight against the OneCoin crypto "investment" scheme, founded by Ruja Ignatova, is being conducted by the police and regulators not only of China, but also of other countries.

The authorities of India in April last year arrested several suspects associated with this scheme, and in July, they brought charges against Ignatova herself.

In addition, the Special Prosecutor's Office of Bulgaria recently joined the investigation of OneCoin's activities carried out by European and American counterparts.

Pure Bit to Refund Investors' Money

Another cryptocurrency scam storu may have happy ending
15 November 2018   70

The founders of the South Korean exchange Pure Bit, who were suspected of stealing investors' money, announced the return of funds.

According to the local edition of BlockchainROK, representatives of the exchange have already partially returned the money to some users and pledged to return all other funds.

On November 4, the exchange team launched the ICO with the goal of collecting about $ 30 million to create a crypto exchange. However, on November 9, Pure Bit closed the site, said goodbye to its investors and removed everyone from the group in the KakaoTalk messenger. Also, the founders of the exchange withdrew funds from the account that was used for ICO.

According to CCN, one of the issues traced the Ethereum address of the exchange and asked Upbit to block the account and freeze the funds. Upbit fulfilled this request.

This is Pure Bit. First off, I would like to apologize to everyone that was affected by the ICO. Since November 5, I raked in 16,000 ETH and did not open a crypto exchange as promised. I kicked out everyone in our social media chat groups and disappeared without any message. I negatively affected investors in the project psychologically and financially. I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation.

CEO of Pure Bit

The founder of Pure Bit also notified that he would return ETH 16,000 to depositors without taking into account the payment of services to a third-party company that organized ICO.