Authorities in India have prepared charges against the founder of OneCoin, the digital currency investment scheme widely believed to be fraudulent.
According regional news source The Indian Express, the Economic Offenses Wing of the Navi Mumbai Police has put together a charge sheet – in which allegations are formally laid out – that includes dozens of promoters connected to OneCoin. Those involved are accused of taking thousands of dollars from investors.
Police have been cracking down on proponents of OneCoin for months, dating back to April, when police arrested a group of individuals following a promotional event. India is among a number of countries worldwide in which law enforcement agencies have pursued investigations against OneCoin.
Among those being charged is Ruja Ignatova, who founded OneCoin and has largely been viewed as the public face of the scheme, appearing at events worldwide, including an appearance in May at one in Macau. A group of "nearly 30" people have been charged as a result of the Mumbai police investigation.
The publication further added that, as it stands, investigators are having difficulty talking about the suspected fraud with some of those involved. The reason: fears of potential legal liability for taking part in what has been described as a Ponzi scheme.
"In this sort of scheme, investors become the perpetrators as well as victims. It is clear that this is a Ponzi scheme," Tushar Doshi, a senior law enforcement official, told the Express.
Police have also been stymied as they look to recover funds. Officials told the publication that as funds were being seized from related bank accounts, some of the money was withdrawn by outside sources.
Ruja Ignatova image via Flickr
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected]/* */.
Bitcoin’s bouncing back, here are the next big catalysts for the cryptocurrency
Bitcoin is back. The cryptocurrency surged Tuesday, closing in on the $12,000 level. One bitcoin bull says progress on the regulatory front could send it even higher. According to CNBC "Fast
EU Regulators to Discuss Crypto Regulation Next Week
A group of European Union regulators will meet next week to discuss the regulation of cryptocurrencies.
Speaking to reporters on Tuesday, European Commission vice president Valdis Dombrovskis said
Lisk Relaunches Blockchain Project With 'Accessibility' in Mind
The team behind the Lisk blockchain network is hosting a relaunch event in Berlin today, boasting a new look and long-term plan for the project.
"Rebranding normally only involves a change of desig
Finland Mandates Cold Storage, Public Auctions for Seized Bitcoins
Finland's government released new guidelines today that set out how law enforcement officials must handle cryptocurrencies they confiscate.
The official agencies in charge of storing the cryptocurr
500 Startups, Huobi Labs Team Up to Incubate Blockchain Projects
500 Startups, the Silicon Valley startup accelerator, announced today that it is partnering with cryptocurrency exchange Huobi's incubator wing, Huobi Lab.
The two companies will support startups i
Bitcoin Price Ticks Higher Amid Strong Korean Demand
Bitcoin's recovery continues apace, with prices passing $11,600 in the morning's trading.
According to CoinDesk's Bitcoin Price Index, at around 07:00 UTC today, the cryptocurrency reached $11,
Final 4,200,000 Bitcoins To Be Mined, The Big Game Of Mining Chip Algorithm
Miners used to mine bitcoins via CPU of PC at the birth of bitcoin. Simply downloading a software, “puzzles” then could be solved automatically and bitcoins’ awarded. However, the price of bitco
Venezuela's 'Petro' Token Launches in Pre-Sale
The Venezuelan government has officially launched the pre-sale of its controversial "petro" token, according to a report.
The petro was first announced in early December 2017 by President Nicolas M