German Regulator Seizes Funds From a Onecoin Associated Company

The infamous Multi-Level-Marketing (MLM) scheme and so-called ‘cryptocurrency’ Onecoin is under investigation once again. On April 10 the German Federal Financial Supervisory Authority otherwise known as Bafin has frozen funds connected with a Onecoin payment processor.

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German Regulator Bafin Freezes a Onecoin-Associated Company’s Assets

German Regulator Seizes Funds From a Onecoin Associated CompanyA German-based company called the IMS International Marketing Services Gmbh is under scrutiny for accepting funds coming from the Onecoin organization. In a recent report, the German regulatory agency Bafin reveals they have seized funds in excess of €29m from the IMS firm. The agency states that IMS raked in a total of €360m from the MLM based company Onecoin Ltd., for over a year.

Bafin says Onecoin is part of a vast network of marketing agencies selling virtual units the company declares as a cryptocurrency. The financial regulator says the Onecoin MLM scheme is used in Germany and across the world by many people. However, Bafin calls IMS an “unauthorized money remittance business,” and the company is in violation of sentence 4 of the German Payment Services Supervision Act.

“In its decree of 5 April 2017, BaFin ordered IMS International Marketing Services GmbH to immediately cease and wind down its unauthorized money remittance business with investors in “Onecoin” for Onecoin Ltd.,” explains the German supervisor’s office.

In case IMS should not abide by the order to cease business, Bafin threatened to impose a coercive fine of 1.5 million euros; for non-compliance with the winding-down order, it will also impose a coercive fine of 150,000 euros.

Investigations in Germany and All Over the World

German Regulator Seizes Funds From a Onecoin Associated Company
For a highly detailed report on Onecoin’s sketchy MLM practices and proof the virtual token is not a cryptocurrency check out our popular Onecoin expose’ here.

Onecoin and its associated companies have been under investigation in Germany before. Bafin started investigating Onecoin in June of 2016 due to solicited investments through the German bank Commerzbank AG. The bank is the second largest financial institution in Germany and may have accepted unauthorized funds from the MLM organization in the past. Furthermore, the alleged Ponzi scheme has been frowned on by government authorities in Belgium, Nigeria, the UK’s Financial Conduct Authority (FCA), and many more countries.

Bafin says they don’t have the power to decide whether or not Onecoin tokens are valid under civil law. However, operations will be investigated says the regulatory agency and “orders may still be subject to judicial review.” Although they can’t legally define Onecoin’s business practices at the moment, Bafin can shut down unauthorized remittances.

“On behalf of Onecoin Ltd, IMS International Marketing Services had investors who had bid to buy “Onecoins” and transfer the sales to various accounts held by IMS International Marketing Services with different banks in Germany and forwarded the money on behalf of Onecoin Ltd to third parties, based in particular outside of Germany. This kind of financial service is classified as money remittance business,” Bafin’s report details.

What do you think about Bafin freezing a company’s assets with connections to Onecoin? Let us know in the comments below.

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  • Mohamoud Hassan

    anything harming the bitcoin image is to be stopped

    • Arny Maggs

      nothing more to be said

      • Tim Tayshun

        Scams harm both the image of ALL cryptocurrency, as well as trends too impose regulatory capture.
        Since Onecoin is not even a cryptocurrency (a cryptocurrency must utilize cryptography and Blockchain technology and not be created in a SQL database, like this scam).
        Luckily, Onecoin’s crime spree will be ending quite soon. Unfortunately, the aftermath and financial devastation these criminals leave behind will affect the lives of masses for an extremely long time.
        I look forward to their prosecution.

        • Paul Arnold

          Absolutely. People are naive greedy and corrupt.

  • Paul Arnold

    Ultimately many people will loose their savings in this latest ponzi scheme. Many of the top dogs at one coin were involved in earlier scams .

  • Andre

    Finally something is done about these scammers!

  • D,

    Its amazing how successful this onecoin has been. My brother almost bought into this one of his so called mates was a sales rep for them and trying to scam him. I advised him initially to look up Dash and invest in it but he said nothing came up on dash but lots came up on onecoin… oh dear.

    • Peter Langelaar

      try to buy a phone with it in china or a laptop at dell onecoin is a sql based ait filled coin not mined not real just scam


    Bitcoin is The End of World. Newer and better are always Welcome. OneCoin with its Worldwide acceptance , seems a better choice

    • Tim Tayshun

      Watch and learn. Teach your kids not to make the same mistakes you are right now.

    • Peter Langelaar

      one coin centralized LMFO

  • David Alonso

    The Bit Coin Killer?! What a Joke!