The Untold Story of The Largest Ponzi Scheme in Cryptocurrency History



what's going on everyone my name is nicholas martin here at data' – and today is march 11th of 2019 well folks i hope you are having a great day wherever you are and today we're gonna be spending a decent amount of time to talk about the continuing developments and not only one of the largest scams and ponzi schemes in cryptocurrency history but in history in general and that is the continuing debacle and story of one coin now some of you out there might have heard about one coin in the absolutely mess that it is and some of you might be hearing about one coin for the first time and there's some good reason for that not only as to how one coin operates but also the fact that there's been a lack of reporting on it over the past few years so we're gonna be talking about the current developments going on some of the positive news that just came out but also how one coin has operated as a business and understanding how to spot a ponzi scheme when it's in front of you so i hope to provide some value in that sense so grab a cup of coffee guys join into the video and let's go ahead and dive into it so the positive developments that have come out as a recent is that the US has arrested the CEO of the multi-billion dollar fraud that is known as one coin so this is good to see now the CEO those you who don't know is the brother of the original founder and the individuals name is konstantin Ignatov and they've obviously arrested him over fraudulent charges of operating one coin now as I mentioned the sister Rosa ignite OVA who is the original founder of one coin has also been charged as well but she has gone missing she ran away back in 2017 and gave the leadership roles of one coin as a whole to Constantine and the rest of the board directors of the company but we have to understand the scale of this Ponzi scheme guys and why it's such a big deal to say that we've at least gotten the CEO or someone who's at least closely tied to Russia who actually founded this and the reason that's important is because they have made a whopping 2.2 billion euros or 2.5 billion dollars in profit between 2014 and 2016 now bear in mind you might notice two things a we're not even talking about 2017 2018 and 2019 but that's a lot of money to have been made through 2014 in 2016 when cryptocurrencies weren't even that big and this again amplifies my point that this is a drastic situation this is a massive scam on grand proportions in fact I would say on a dollar value of losses is probably bigger than the Kinect even though a bit Kinect had probably a larger market cap when we're talking about actual liquid cash that was lost here one coin has to be one of the largest scams in history so we're gonna be talking as we go through about not only the positive developments this is action article from Mitchell news who's a guy I met out in Seattle and yeah Def Con really awesome guy over at cryptids Lee but basically he did a really great job detailing how this was able to operate and we'll go ahead and talk about really one of the major points as to how it was able to operate as well jumped a bit connect in a little bit as a comparison but connect really took upon the opportunity to utilize features of cryptocurrencies blockchain and the speculative wave that was coming through in crypto in order to prolong its ponzi scheme and it would have gone longer unless regulators called it out and the same goes here for one coin but it actually takes something that isn't common in crypto currencies but because people don't do their research and they're sold more on profits and making money they fell for the trap than one coin used and what was that well it was the absolute control of the currency a big reason why you probably haven't heard of one coin is because it's not traded on exchanges you can't spend it anywhere and there's some services well we'll look at in a second that they said that you could use it for but again the coin was practically seen as an investment and it was kept under the control of the one coin company and with this because it had no real value because there was no real exchange rate they could basically do what happens commonly through washe trading on exchanges and that's basically fixed the price they were able to basically through selling a bunch of packages of these coins these one coins they were able to take and Fiat and give people this digital ownership of something that had no fun value and because of that they were able to falsify the price and make it seem as if an original investment of you know half a euro had gone all the way up to practically 30 euros by January of 2019 it was this continuous growth cycle as we'll take a look at some of the charts later on and because of this again just like in game digital currencies that people spend a lot of money on people were doing it with an investment mindset this time around and they were able to rack in 3.35 billion in sales revenue and earn a profit of 2.2 3 billion euros and the reason they have such a nice margin like that is because while the printing is stuff out of thin air and the only expense they really have is probably two things a running events and meetups to sell this kind of stuff as well as the website and things of that sort and then also probably buying off politicians in low govern you know low to small governments that are corrupt things of that sort at least to buy themselves some time so again very very corrupted format to making money and if you go through there's some really interesting developments I mean for example this is one that I really found interesting how for example the original CEO and Founder and basically mentioned in an email the ingot OVA and her co-founder in this case that her exit strategy for one coin was to take the money and run and blame someone else for this well she she definitely left someone quite personal to be hid under the bus but I guess he took on the role didn't he anyways if you guys want to learn a little bit more about these developments I recommend you read through the rest of Mitchell's article it's a good piece but on a very important topic and I want to go through some images here just to give you some perspective as to what one Quinn looked like this was the logo of one coin we can see obviously across the board one coin is a well-known scam on the internet but again they're not selling this coin to active cryptocurrency investors they're selling it to people who don't know a damn thing about crypto and people who can give them a ton of money so there's a few interesting photos so you can see it like a picture of some of the conferences and the meetups they would do the Bitcoin killer I remember as well some people were saying that one coin was the same as bit Connect in this case it was the path to find actual freedom it was a financial revolution all these big buzzwords that didn't really make much fundamental sense and then they also have as well this is a good chart here of how you could use one coin right for coin Vegas coin cloud and one Academy one coin exchange like all these businesses that were supposedly built around this currency that bear in mind doesn't have any value so how do these services have value or at least using this currency on these services so again the same old kind of form of marketing tackling probably a variety of emerging markets where people don't have as good a financial education but bear in mind this is something that is not only affecting emerging markets it's affecting a variety of countries I remember in Ireland I had people who I met at my meet up back in January of 2018 who had said that one coin had been there as early as 2013 or 2014 so not only that but the worrying thing is is that even as they have the CEO captured the bad news is is that one coin can persist it can keep going it is still going out there and misleading people it is still going out there and selling its package so long as they can continue to wire the money and so long as they can continue to operate their site and that's the scary thing folks these things can go on for a very long time and they are able to kind of correct it and they learn over time what convinces people so they can make a very convincing business model so I'm really interested in seeing if there's a way we can try to stop this kind of stuff it's kind of difficult to stop a Ponzi scheme I mean–but Kinect's was an obvious example and you know they even for example on my channel we talked about it you know months before it collapsed in this case and I also was gonna do a video as well sadly I wasn't able to fit it in because I I did this whole two days worth of research and it planned this whole presentation to talk about Beck connect but I was worried as a youtuber for getting sued for defamation right and not to mention at the time they connected was a multi-billion dollar Ponzi scheme so they had a lot of resources at their belt so these things are very very powerful and they leave a massive impact on people but they all have the same exact exit strategy and that is to make a bunch of money of you now Becky next model differed a little bit from this kind of centralized controlled model of one coin nonetheless they did still have central control of things but they did it through a lot of ignorant as to what cryptocurrencies how cryptocurrencies should be used and then also the model as to how bit connect actually got you to send funds to them so I'll explain a bit connect real quick just to learn this because I know it's a little bit separate from one coin but I think it's relevant to summarize what I would have talked about in my video outside of the multi-level marketing referral links outside of the guaranteed returns basically how big connect operated and made money was that it incentivized you to take your Bitcoin real money in this case and sell it for bit connect tokens right or excuse me to basically summon purchase but connect tokens and in that case they're already generating some worthless token that has no real value but they're getting your Bitcoin and along with that the bit connect tokens don't go and most likely into your wallet you could put it in your wallet but no one did the damn research to realize that you would actually earn more just keeping in the wallet no see most people put it into the bit connect platform where the omnes trading BOTS would earn guaranteed income over time and guaranteed interest and with this they were able to practically hold all the money and tell everyone on paper that they're getting rich no could some users withdraw absolutely but when it got big enough the whole system collapsed right so this is a very short summary again I really recommend people looking to the wallet aspect no one really looked into that and that was the fact that you could earn like 50 percent more bit connect tokens and every month it would decline like 40 30 percent more bit connect tokens if you just staked him in the wallet but it shows you how they prey on misinformation they prey on people who don't do their research and this will continue to persist guys it's not something that is native to cryptocurrencies it's something that is fundamentally built from a misunderstanding of financial education it's why I'm so passionate about what I do here on the channel why I love teaching you guys to spot these kind of things and if we were taught about these things in school or in public education I don't think these would persist as often but I think we're a very misinformed society we have not learned how to be financially sovereign to fight be financially literate and actually understand how to spot these things dead-on from a mile away but I'd like to know what you guys think down below in the comments how do you think we can stop these kind of things and also you know have you guys ever experienced anything personal or heard any personal stories about one coin love to hear from you guys down below in the comments but above all it is good to see that the CEO has been taken down I think with this there's a potential to have a direct connection to finding the CEO and original founder of one coin and with that we can possibly really bring down this entire pyramid this entire Ponzi scheme and start to bring justice to a lot of people who lost a lot of money so anyways that's it for the video everyone – thank you all so much for watching and I'll see you all in the next one stay tuned you

23 thoughts on “The Untold Story of The Largest Ponzi Scheme in Cryptocurrency History”

  1. In May 2016 (BTC at $400) a friend sent me a video about crypto currency. Several months later and after going down the rabbit hole i realized the power of blockchain. I called her and told her I get it and crypto will be huge. Then I asked her how much bitcoin she bought? She said "oh, I didn't buy bitcoin and bought another crypto called OneCoin." So sad, she got the space right but invested in a ponzi.

  2. but sounds very similar to US economy that is backed by nothing all cash is virtual because it has no real value…….then the US Financial system is a ponzi scheme

  3. my previous boss invested 13k usd in onecoin. he did not want to listen, because "there are also people on the internet calling bitcoin a scam"

  4. What would be a good way to educate people? I have a funny idea: scam someone and tell them you scammed them, then ask them how they are feeling about being scammed. Then give them their money back and tell them "now dont ever fall for such bullshit again and warn everyone else. next time you are not getting it back"

  5. Generation changes but it's still the same old stereotypical 1920s ponzi schemes… Even though we are aware of such floated virtual prosperity…. We tend to go for it due to limited income from growth less salary and multi fold committments. More than ignorance its a spontaneous act of idiocracy to reach the financial independence… Which is never there

  6. "The Billion Coin" is also a niche ponzi scheme that's actually very entertaining to read about. I'll give financial advice without the usual disclaimer: Don't invest in The Billion Coin!

  7. OneCoin / OneLife is Pyramid & Ponzi scam by design. Fake Blockchain SIMULATOR, no cryptocurrency.

    Dealshaker merchants who accept OneCoin Ponzi Points in exchange for real products and services are Greater Fools.

    Evidence:

    https://onecoinscam.info

    https://onecoinscam.info/blockchain-simulator/

    https://onecoinscam.info/hyping-a-fake-cryptocurrency/

  8. Hey DataDash, I have been following Onecoin since March 28th, 2015 (about 6 months after it officially launched).
    I'm widely considered the #1 Expert on the ponzi in the world (although that wouldn't be without the help of a number of global Consumer Protections Advocates and Anti Crypto-Scam Activists, like myself). Having been in crypto since 2 years prior to being contacted by a Onecoin prom over over FB Messnger that March, I was able to glean that it was 100% fraud within about 3 minutes of seeing their website. Yet I was urged to watch a 30 minute "How Onecoin Mining Works" video, which immediately made me see exactly how they were going after people who had never seen or heard of crypto, other than a few news splashes here or there, at the time.

    If ever you wanted to unravel or discuss the scam in more detail, and using images, graphs, photos, etc., I could probably put something fun together. I have also come up with strategies, along the journey, to more quickly attack these scams, as well as how to avoid lawsuits (I, myself, was sued IN FEDERAL COURT on 77 counts of defamation and obstruction of business by ….how can I legally describe this ….a U.S. Businessman whom ….."spoke at numerous Onecoin Events around the world."). And in 2016 I had several death threats for attacking and exposing the scam.

    If interested in discussing further, either as a consideration for a special show, or not; you can email me at [email protected] (which was the name of the first bitcoin ATM company I launched in 2014).

  9. I know people that have lost hundreds of thousands of dollars with this company. I know high-level people as well, there's a lot to this company you do not know or are just not sharing. If you want message me and I can set up an interview. The story behind this company is crazy.

  10. Got sold this shit buy a guy in Dubai called lee O’Shea and he just ignored all communication when the news was spilling out
    So many people got away with murder
    Disgusting

  11. beeeeeeeeconnnnnnnnnnneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeecccccccccccccccccccccccccccccc

  12. I watched you at Hong Kong Blockchain Week, awesome interviews my friend. It's no wonder why you have over 313 thousand subscribers! Keep "em coming.

  13. So if everyone involved gets caught, will they go to prison? Or will they have to work at the federal reserve? Not sure how that works in the US. Since we're talking about scams and what not.

  14. CEO of Dascoin Michael Mathias was involved in OneCoin, Dascoin operates in a similar manner it's OneCoin 2.0. I'm suprised not more people talk about it, every corporate event here in Ireland someone clueless about cyrypto who's been sucked in by this OneCoin clone, is trying to shill this DasCoin Ponzi.

  15. It is about time that this Oncoin Ponzi scheme is finally being reported on !… Unfortunately, though, I do have a few of my brothers and relatives who are heavily invested in this get rich quick pyramid scheme. And I hope that this information will stop them from putting even more money into this scheme. Thank you, I’ve been a fan on your channel for a long time, you know your stuff.

  16. no need to stop things like that… idiots need to be charged for their dumbness 😉 next time they think better before investing… but in my experience they fall for shit again short time later…

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