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Today’s focus: “Tang Hao’s Book Room” Formerly known as the “Bitcoin Killer,” deceived 4 billion euros, did the cryptocurrency queen leave behind a historical mystery?
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Dubbed the “Cryptocurrency Queen,” the founder of OneCoin, Ignatova, though listed by the FBI as one of the “top ten most wanted criminals,” is still at large, is she alive or dead? Why did OneCoin evolve into the largest cryptocurrency scam in history? How much money did OneCoin deceive? In this episode, we will delve into these questions.
When it comes to cryptocurrency or virtual currency, you will surely think of Bitcoin. But have you heard of “OneCoin”? In English, it’s called OneCoin. If you haven’t heard of OneCoin, we will share some data with you:
First, between 2014 and 2016, OneCoin attracted 3 million people and over 4 billion euros in investments, becoming the world’s second-largest cryptocurrency market after Bitcoin, earning its parent company over 2.7 billion euros.
Second, many Chinese individuals were drawn to OneCoin, with over 400 million euros invested in OneCoin in the first half of 2016 in China alone, equivalent to over 15 billion RMB.
Third, OneCoin’s investment return rate can reach up to 300%, far surpassing Warren Buffett’s annual return rate of 20%. And the investment payback period is rapid, with an initial investment of 12,500 euros quickly yielding 40,000 euros.
Fourthly, and most importantly, the total market value of OneCoin is “zero.” Yes, zero. Because OneCoin was a fraud from start to finish. The world’s second-largest cryptocurrency became the largest currency scam in history.
As a result, OneCoin’s founder Ruja Ignatova also made it onto the FBI’s “top ten most wanted criminals” list in 2022, and she is the only woman among the top ten most wanted. So, how did this unprecedented cryptocurrency scam come about?
In 2014, Bulgarian-born Ignatova founded OneCoin, claiming it was a decentralized cryptocurrency like Bitcoin, acquired through “mining,” hence limited in quantity and valuable.
Due to the cryptocurrency investment frenzy fueled by Bitcoin at that time, OneCoin immediately garnered high market attention. Particularly intriguing was that OneCoin differed from Bitcoin in a significant way. You see, Bitcoin’s founder Satoshi Nakamoto has always remained elusive. Although many have claimed to be Nakamoto, their true identity remains a mystery. In other words, the mastermind behind Bitcoin is still an enigma.
However, OneCoin was different. Its founder was not only a living, breathing person but also had attended Oxford University in the UK, held a Ph.D. from a German university, and had worked at the renowned McKinsey consulting firm. Ignatova also frequently appeared in the media. Thus, investors found OneCoin seemingly more trustworthy, sparking investment fever even in China.
Anchor: “Analysts believe that as the mining difficulty increases, the investment cost of OneCoin will significantly rise.”
As a result, within a few years, OneCoin attracted 4 billion euros in funds, allowing Ignatova to travel worldwide to market and promote OneCoin. OneCoin even garnered the moniker “Bitcoin Killer.” They even held a carnival event at Wembley Stadium in London, attracting international investors. According to Yahoo Finance’s estimates, the total amount deceived by OneCoin could reach 15 billion euros.
However, just as OneCoin reached its peak, doubts began to surface. For example, OneCoin claimed to be a decentralized cryptocurrency like Bitcoin, requiring mining to obtain it. However, OneCoin’s company had not invested in any mining equipment nor had any blockchain records.
Furthermore, OneCoin could only be traded on their proprietary exchange website, with its daily closing price consistently rising, never depreciating, starting at 0.5 euros and soaring to 30 euros, almost a “sure-win,” very suspicious.
Moreover, OneCoin declared itself a “multi-level marketing company,” bundling OneCoin with educational courses for sale, requiring referrals from existing members to purchase OneCoin. Existing members who referred newcomers received substantial commissions.
At this point, savvy individuals would surely recognize that such an organization was not a legitimate company but a sophisticated Ponzi scheme or scam. Indeed, OneCoin caught the FBI’s attention because even within the U.S. Department of Justice, many fell victim to OneCoin’s deceit, hoping for overnight wealth only to find themselves in debt.
However, as international investigations into OneCoin began, Ignatova disappeared with billions of euros. In October 2017, after boarding a flight to Greece, Ignatova vanished without a trace.
Some claimed she underwent plastic surgery, changed her identity, went into hiding. Some media outlets suggested she was murdered by a mafia boss in 2018, and her dismembered body was disposed of at sea. However, the latest news indicates she is still alive. Earlier this year, a mansion on the outskirts of London was set for auction, officially held by a company, but the beneficiary behind the transaction was Ignatova.
Whether alive or deceased, Ignatova has established OneCoin, the largest cryptocurrency fraud in history, rising rapidly in three to four years only to disintegrate swiftly. This highly dramatic story is set to be adapted into the Hollywood film “Fake!” starring British actress Kate Winslet, who previously appeared in “Titanic.”
However, what is noteworthy is the astonishing revelations uncovered by the U.S. government’s investigation into OneCoin. For instance, back in 2014 when OneCoin was launching, Ignatova told her partners that OneCoin was “garbage.” They devised an “exit” plan, intending to flee with the money and shift blame onto a scapegoat.
They even privately ridiculed investors as “idiots,” claiming the scam wouldn’t work on smart people. Furthermore, they deliberately manipulated OneCoin’s daily price to only increase, instilling confidence in investors and causing them to invest more funds, and so forth.
Behind the century’s greatest scam of OneCoin lie many dramatic revelations and shocking details, too numerous to recount here. Recently, a new book was released in Taiwan titled “The Missing Cryptocurrency Queen,” focusing on the OneCoin scam. The author is British journalist Jamie Bartlett.
Since the launch of OneCoin, Bartlett has continuously delved deep into tracking and investigating, eventually creating a podcast program on the BBC titled “The Missing Cryptocurrency Queen.” Not only was it downloaded globally over a million times but also topped the UK Podcast charts. The content of this program has since been published as a book, and a renowned Taiwanese publisher has translated it into Chinese, officially releasing it. It is the book on my desk.
This book comprehensively documents how the OneCoin scam was constructed, revealing numerous shocking tricks. It also showcases the characteristics of a high-tech scam and teaches us how ordinary citizens can discern and prevent their investment dreams from turning into financial nightmares.
I believe this book comes at a critical time. With rapid technological advancements, even artificial intelligence is utilized for fraud. What higher-tech, more sophisticated large-scale scams are on the horizon? We cannot predict. But by learning from the lessons of OneCoin, perhaps we can find more awareness and preventive measures.
Well, that’s all for today. Thank you for watching, until next time.
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Yong Yue
Feitian Yao Jing Zhu Mo Shu
Bi Ju Hua Zhang Chang Qian Gu
Yin Pu Xuan Xie Tang Xin Rou
Yi Huan Qing Zhen Xiang Guan Mu
Tang Hao
“Crossroads of the World” Production Team