OneCoin Scam: A Cautionary Tale and a Call to Action for Victims Still Seeking Justice

Tubrazy Shahid
May 31
3 min read

The cryptocurrency revolution promised freedom, transparency, and financial innovation. But for many unsuspecting investors, it also opened the door to complex fraud schemes masked in the language of blockchain and decentralization.

One of the most infamous of these is OneCoin—a global scam that claimed to be the next big cryptocurrency, but in reality, never had a functioning blockchain at all.

💸 What Was OneCoin?

Launched in 2014 and marketed aggressively across Europe, the U.S., Asia, and Africa, OneCoin pitched itself as a revolutionary cryptocurrency. Investors were promised astronomical returns and encouraged to recruit others in a multi-level marketing (MLM) structure. It was sold as "the Bitcoin killer."

But beneath the surface, OneCoin was never a real cryptocurrency. There was no public blockchain, no decentralized ledger—only a slick marketing campaign and a centralized database controlled by its founders.

Estimates suggest that over $4.4 billion was raised from victims around the world.

⚖️ Court Actions and Legal Milestones

The legal aftermath of OneCoin has been far-reaching:

Konstantin Ignatov, the brother of founder Ruja Ignatova (who remains missing), was arrested in 2019 in the U.S. and pleaded guilty to charges including money laundering and fraud.
Mark Scott, a U.S. lawyer and former equity partner at a major law firm, was convicted of laundering over $400 million for the OneCoin operation.
Courts in the United States, Germany, and Bulgaria have since launched prosecutions and asset recovery efforts, with investigations still ongoing.

🧑‍⚖️ Legal Precedent: Crypto Fraud is Securities Fraud

One of the most important legal takeaways from this case:Courts have now accepted that even "fake" cryptocurrencies can be prosecuted under securities fraud laws.

This sets a powerful precedent. Whether the crypto asset was legitimate or completely fabricated, fraud is still fraud—and victims have the right to pursue justice and restitution.

This development opens doors for victims of other crypto scams to take civil or criminal action, claim damages, and seek asset recovery.

🆘 A Message to OneCoin Victims: It’s Not Too Late

Many victims of OneCoin have remained silent—some out of shame, others due to fear or uncertainty about their rights. But here’s what you need to know:

✅ You are not alone.✅ You may still have legal options.✅ Time is of the essence in preserving evidence and asserting claims.

As a cryptocurrency lawyer who has worked on complex international fraud cases, I help victims navigate multi-jurisdictional legal systems to file complaints, trace stolen funds, and coordinate with authorities and regulators.

If you or someone you know was impacted by OneCoin—or any other crypto scam—you may be eligible to join a coordinated legal action or pursue restitution individually, depending on your location and the nature of your investment.

📩 Let’s Talk

Justice may take time, but it starts with a conversation. If you are a victim of the OneCoin scam, or have been defrauded in any other crypto investment scheme, reach out for a confidential legal consultation.

It’s time to hold fraudsters—and their enablers—accountable.

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Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.

Author & Crypto Consultant

Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)

Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.