After booming of cryptocurrency such as Bitcoin and Ethereum in the digital currency world in 2017, it followed the fraud of crypto-based pyramid scam like OneCoin, a worldwide billion-dollar scam and BitConnect, shut down MLM based Ponzi scam last year.
Last week, the two siblings behind OneCoin have been charged by American prosecutors with fraud and money laundering. But, one of the suspects remains at large. One of the two was Konstantin Ignatov, who was arrested at Los Angeles International Airport on a wire fraud conspiracy charge stemming from his role as a leader of an international pyramid scam that involved the marketing of a fraudulent cryptocurrency OneCoin.
The next one was Ruja, a sister of Ignatov and the alleged founder and head of OneCoin, who was charged in absentia for wire fraud, security fraud, and money laundering.
OneCoin was founded in the Bulgarian capital of Sofia in 2014. It operated as a multi-level marketing network, and drew in investors from numerous countries, putting more than US$ 4 billion into the scheme. In the period from the fourth quarter of 2014 to the third quarter of 2016 alone, the scheme generated nearly 4 billion USD and earned profit more than 2.5 billion USD.
In the cryptocurrency world, there are so many IPOs, tokens, and coins, given different kinds of names. Some are based on real-life business but some are not. If some coins or tokens are based on MLM system in marketing, it is a tendency to be a fraud. The testimony of it was BitConnect, which was a billion-dollar scam, and it could stand at the top 20 of coinmarketcap. After rocketing the balloon of BitConnect to the apex by using multilevel marketing, it collasped in 2018. The money of many investors from the world, especially Southeast Asian countries, was vaporized within one year.
In conclusion, Myanmar has no law for cryptocurrency trading until now, and even most of the authorities do not understand clearly about it. If someone gives some messages to be rich promptly, please be aware of it. It may be a fraud with a cryptocurrency based scam. It may be a millionaire with a cryptocurrency in a country of the first world, but it may not true for a citizen of a third world’s country like Myanmar.Please be careful not to be a victim of coins or IPOs with multiple names!