Category Archives: Scams

The biggest MLM scams in the Bitcoin world – and what’s left of them today

Some are in jail, others in a villa in Dubai: Scammers had a great time in the crypto scene in 2017. Many of the rip-offs at that time spread via multi-level marketing (MLM) and the promise of quick profits. But what happened to the biggest MLM scam coins of that time? And where are their former operators today? We collect the fragments of some of the biggest of these rip-offs and take a look at their methodology.

Bitcoin news from the unattractive side effects of the crypto currency hype

OneCoin, the alleged mother of all Bitcoin news Scams 2017. The name OneCoin has become the epitome of Scams in the crypto range according to the Bitcoin news. As is typical for such rip-offs, it linked multi-level marketing with digital currencies. OneCoin actually bought training in the crypto area. This was accompanied by customers receiving mining rights for the crypto currency, which was not yet publicly tradable. As soon as OneCoin was listed on a crypto exchange, profits would skyrocket, according to the promise. The customers earned additional money by recruiting new partners. However, the listing never took place.

“In reality, the OneCoin crypto currency was the cover for a system whose sole aim was to accommodate new consumers, according to the new Tiroler Tageszeitung in an investigative report about OneCoin.

After about two years the spook came to an end: After numerous warnings from financial supervisory authorities all over Europe and various police investigations OneCoin was exposed as a snowball system. In April 2017, BaFin imposed a business ban in Germany.

In many cases, the initiators of companies with fraudulent intentions do not act as liable CEOs, but merely as popular sponsors or management consultants. But not so in the case of OneCoin: The whereabouts of former CEO Dr. Ruja Ignatova, after she had been arrested and released on parole in the meantime, is currently apparently unclear. Some voices claim that she lives under a false name in Ukraine. It seems, however, that police authorities in Europe are still searching for her.

Bitcoin formula – The scam among the top 20 crypto currencies

Another prominent coin that followed a similar scheme was Bitconnect. Unlike OneCoin, Bitconnect was a popular coin on, and in the meantime even made it into the top 20 coins by market capitalization. Bitcoin formula operated a trading exchange and its own crypto currency. There were horrendous profit promises; once you lent the crypto currency over the platform, you got up to 120 percent profit a year. The minimum profit outlook was 40 percent interest plus 0.25 percent profit on the deposit per day. In addition it spread – who would have thought it – by recommendation marketing. Whoever brought new participants into the system could earn even more.

Right from the start, the Bitconnect system was suspected of being a Ponzi. The intervention of various financial supervisory authorities then brought confirmation. Bitconnect crashed at the beginning of 2018 and in September the last crypto exchange stopped trading the digital currency.

As so often it became dirty for the former operator – his wife was allegedly murdered and today the FBI is investigating him for his business.