India is Cracking Down on OneCoin
Reports are emerging that authorities in India are undertaking a broad crackdown on OneCoin.
Reports are emerging that authorities in India are undertaking a broad crackdown on OneCoin, a digital currency investment scheme widely believed to be fraudulent.
Outlets such as Times of India, The Hindu and Hindustan Times report that as many as 18 individuals have been arrested in connection with OneCoin events in the country. The arrests took place on Sunday, according to the outlets.
Police are also said to have confiscated funds from bank accounts associated with the individuals – believed to have been collected from would-be investors – totaling more than $2m. An official told The Hindu that authorities believe that additional accounts may exist, but due to the fact that those accounts weren’t explicitly connected to OneCoin companies, tracing them could prove difficult.
According to the reports, the arrests and subsequent account seizures came after Indian police went undercover during a recent OneCoin event. Attendees were allegedly promised big gains – a common refrain among OneCoin supporters – at the end of next year.
The news represents what is perhaps the most significant crackdown on OneCoin – accused of operating a Ponzi scheme under the guise of a digital currency investment program – to date.
Earlier this month, BaFin, Germany’s top finance regulator, shut down a Germany-based payment processor that was collecting payments on behalf of OneCoin. BaFin also seized €29m from accounts tied to the processor.
Central banks in areas believed to have been targeted by OneCoin promoters, such as Nigeria and Uganda, have issued warnings in recent months. Police in the City of London are also investigating the scheme, as previously reported.
Arrest image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.