back to article OneCoin lawyer trial kicks off in NY as cryptocurrency founder remains on the lam

The trial of an American lawyer accused of moving hundreds of millions of dollars from a cryptocurrency scheme to offshore accounts kicked off on Monday this week in New York. He denies any wrongdoing. The hearings are expected to take two to three weeks, and are the first for the three key executives charged for their alleged …

  1. sbt Silver badge

    Worthless tokens

    At least those paper tickets you win as prizes from arcade machines can be exchanged for crummy stuffed toys and other tat. Imagine being stupid enough and blinded by greed enough to shell out real money for something worth even less.

    1. stiine Silver badge

      Re: Worthless tokens

      They can also be wrapped around herbs and smoked.

    2. tmTM

      Re: Worthless tokens

      Not real money so not a real crime.

      Wait, what???

    3. Aztek

      Re: Worthless tokens

      I'm sorry to say, though you obviously don't have a clue what your taking about. I'm a Onecoin owner and have spend my onecoin's in Italy last year and there are many things you can buy with Onecoin's from produce to property, so get informed before you spout anymore BS..!

      1. Ed 11

        Re: Worthless tokens

        Onecoin owner? I'm so sorry for your loss.

  2. DownUndaRob

    Incorrect Reporting

    Please stop painting the Multi Level Marketing industry with this brush, the source document never refers to a multi-level marketing pyramid, but simply a pyramid scheme.

    1. sbt Silver badge
      Paris Hilton

      MLM === pyramid

      Not seeing the issue with the reporting here. There doesn't seem to be a Ponzi scheme claim, which would be a horse of dissimilar hue.

    2. Anonymous Coward
      Anonymous Coward

      Re: Incorrect Reporting


      Pyramid scheme, Ponzi theme, Multi level marketing.

      They are all the same. They all involve getting desperate people to hand over money and "recruit further investors"

      They also have the same flaw.

      Sooner or later they run out of people to "recruit"

      End result? The people on the top few rungs make money. The rest lose money. And the friends they recruited. Or am I wrong?

      Cheers… Ishy

      1. DownUndaRob

        Re: Incorrect Reporting

        And there you show the usual level of ignorance shown by people who have swallowed the MLM == Pyramid == Ponzi malarkey.. please do some research.

        1. Intractable Potsherd Silver badge

          Re: Incorrect Reporting

          The differences are vanishingly small, so they equate very closely to fraud.

          1. DownUndaRob

            Re: Incorrect Reporting

            The differences are vanishingly small, so they equate very closely to fraud.

            But they are there, one of the key differences being if there is more effort put in building than retailing then you are probably not in a 'real' MLM but a pyramid masquerading as one.

            An argument can be made that shows Tesco's is a pyramid scheme.

        2. sbt Silver badge

          Please do some research?


          What, you mean like the UK court judgement that reported a 99.7% loss rate for investors; or the study of MLM systems' own data showing up to 99.9% loss rates.

          Why don't you do some research and stop drinking the Olay.

      2. Michael Wojcik Silver badge

        Re: Incorrect Reporting

        Pyramid scheme, Ponzi theme [sic], Multi level marketing.

        They are all the same.... Or am I wrong?

        You're wrong. Ponzi schemes are not pyramid schemes. Ponzi schemes are flat, not hierarchical; the controllers pay investors leaving the pool using receipts from new investors. There's no pyramid.

        MLM schemes are indeed pyramid schemes, with the addition of actual exchange (of goods, as with Amway / Alticor or Herbalife, or of real property, or of financial instruments, etc) between network members and a wider market. I'm not aware of any MLM schemes where the exchange economic activity hasn't been dwarfed by the membership economic activity, i.e. the transfers of wealth up the pyramid. I wouldn't touch them myself - at the very best they're hugely inefficient at their ostensible non-pyramid activity, and the property being marketed is often rubbish - but they're not pure pyramid schemes.

        Also, all capitalist economic organizations require an influx of new participants to grow. Some are content to grow "organically" by selling something of (perceived) value to a market; some are even not particularly obsessed with growth and are comfortable more or less maintaining a consistent stream of income. But it's not the need for new participants that distinguishes pyramid schemes (including MLMs) and Ponzi schemes from non-fraudulent businesses - it's the excessive reliance on them.

      3. Aztek

        Re: Incorrect Reporting

        Yet another moron who knows nothing about what they write..!! The biggest ponzi scheme is our Banking system, some of you people really need to wakeup and do your research..!

        A Ponzi Scheme HAS NO PRODUCT, Onecoin does, it has many products, so once again it's time to do your research and stop spouting mindless BS...!!

  3. Imhotep Silver badge

    Earned A Precarious Living By Taking In Each Others Laundry

    I'm trying to dredge up sympathy for the "victims" - IE: people who would in turn try to defraud others - but with a singular lack of success.

    1. Southernboy

      Re: Earned A Precarious Living By Taking In Each Others Laundry

      The scheme was powered by MLM and yes some of the people at the top of the pyramid did make money out of it.

      But a huge number of ordinary people were taken in by the promises of the returns, and have lost money which they could not afford to lose. As is often the case, it's those with the most to lose and the least resources to pursue justice who suffer.

      The BBC podcast 'The Missing Crypto Queen' is an interesting and depressing listen. Try listening to the Ugandan asking the BBC presenter if he's got good news for his mother, who spent all her savings - earmarked for opening a maize store - on OneCoin. That money's never coming back.

      1. oiseau Silver badge

        Re: Earned A Precarious Living By Taking In Each Others Laundry

        ... a huge number of ordinary people were taken in by the promises of the returns because of their greed ...

        Simple, 100% pure greed.

        That's what all these events are about, nothing else.

        The golden offer of making a shitload of money in return for handing over a small portion of the promised sum to a scammer.

        Of course, as this type of thing has never ever happened before so, who would have known?

        There's a phrase widely attributed to a fellow by the name of P. T. Barnum but only fools believe he actually said it because, just like OneCoin's blockchain, as there's no proof to back it.


        1. Southernboy

          Re: Earned A Precarious Living By Taking In Each Others Laundry

          Except it's not a simple as that.

          It wasn't promoted as MLM - more like a revolution which would 'Bank the unbanked' - making it attractive to people who weren't financially literate and who were outside what we consider a normal banking system.

          Coupled with the immense cult-like marketing and following it garnered, as is often the case, those least able to afford to lose money were drawn in and lost their houses (literally in some cases).

          1. Michael Wojcik Silver badge

            Re: Earned A Precarious Living By Taking In Each Others Laundry

            Except it's not a simple as that.

            Right. In frauds like these, typically many of the victims are people who are not financially literate, and who have very few opportunities to leverage a small amount of capital. They may have only one opportunity in their lifetime to invest in the hope of moving from an existence of chronic or constant financial peril to one of minor comforts and a degree of financial security. That's not "greed"; it's survival.

            But of course snap judgements are a staple of the omniscient Reg commentariat.

          2. alexmcm

            Re: Earned A Precarious Living By Taking In Each Others Laundry

            "Coupled with the immense cult-like marketing"

            I certainly got the "cult" vibe from reading their website. All the promotion to pay for educational material to get to level 5 and elsewhere more educational material to progress to level 7. And soon you'll be a fully qualified OneForex trader. All sounded very scientologic.


        Re: Earned A Precarious Living By Taking In Each Others Laundry

        yes, just listened to this, very good, although I just kept thinking of Farage and the BXP - Grifters gonna grift

  4. Pascal Monett Silver badge

    "get in on the ground floor of what she claimed would be the next Bitcoin"

    But it is the next Bitcoin : a refined Bitcoin, without all the hassle of having to manage tokens and deal with exchanges.

    No, this is just pure "gimme the dough and shove off".

  5. theExecutive

    Electronic Money

    Tokens that can be exchanged are exchanged for "Cash" people buy tokens to "Make Cash" , its not the future of money, it is old fashoined greed, and a BlockChain ledger does not make any crypto currency any different, OneCoin is a little different, as Sotoshi Nakamoto is anonymous, OneCoins creator is not....Hey fancy buying a ? "Yes it good, make much money" quote by Dr.Philip Goodtimes

    1. Anonymous Coward
      Anonymous Coward

      Re: Electronic Money

      Dagcoin? Okay, the names just get more bizarre, did this one originate from the arse end of a dirty sheep?

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