We aren’t advocates for Ponzi schemes.
That’s why we don’t write about them or pretend to like them.
Although, it seems the world is fighting back against these “easy to be fooled” schemes that have been stealing unknowing investors’ money.
Bulgaria Shuts Down OneCoin Servers
While OneCoin currently remains operational, there have been multiple raids to shut it down.
Most recently on January 17th and 18th, they had their servers seized in Sofia, Bulgaria.
The raid’s happened in a series of requests by the prosecutor’s office being carried out by the Bulgarian police force and some E.U. crime units.
OneCoin contains a private blockchain that is centralized where they keep and “protect” their member’s money.
In other words, it isn’t a cryptocurrency, but entirely a Ponzi scheme.
China Targets Cryptocurrency Ponzi Schemes
Recently the Chinese ministry said:
“The public security organs and industrial and commercial departments of the country will continue to carry out special rectification in key areas and…concentrate on destroying the pyramid selling organizational system, severely punishing the members of the pyramid selling field, annihilate and destroy the network pyramid selling and criminal activities, [and] earnestly safeguard the legitimate rights and interests of the general public as well as the economic and financial order.”
You can read the full statement here (1.)
This is coming out of a government that continues to “crack down” on cryptocurrency related companies.
Although, clearing the water of these Ponzi schemes is something needed for investors that don’t do their research (which we never advise). You should always do your own research before putting your money into something.
Bitconnect Plummets… And Their Lenders Lose A Lot
Lastly, we saw Bitconnect not only see multiple cease and desists, but also stopping their lending.
Which took the price of it all the way down to $6 from over $200.
While this was a looming event, it is also a cautionary tale to anyone who thinks that any profit, even in the crypto space, is guaranteed.
Investments should always follow the rules we put on this page —> Investing Mindset
That’s it for today.
Thanks for reading,
The GCA Team