The US Justice Department has kicked off a compensation process for Onecoin victims.
I did some digging and noticed that Onecoin was all the rage a few years back when ICOs were super popular. Unfortunately, most of the folks who got involved ended up getting scammed. I just saw a news update this morning about the government planning to refund those losses. Do you guys actually believe this will happen?
If the money does get returned to the victims, what do you think the fallout will be? Is this a positive move for the crypto scene or just a drop in the bucket?
If a legal lawsuit is going to happen, then it's possible that investors get their money back partially. They aren't going to recover 100% of the funds, anyway. What happens in these cases is that seized money by authorities is used to compensate investors for their losses.
In Celsius scam, for an example, something similar happened and we got about 33% of our original funds back. Even though 1/3 was recovered, it still means a severe loss, therefore, you have to be careful with your money when investing on the internet.
Always make sure there are guarantees involved, and if there is none, avoid it.
How will the government return the money of all investors back, the process could create opportunities to scammers, by your research onecoin happened years ago, fake investors can come to claim compensation that isnt theirs.
If the money is shared to the victim without any dispute afterwards it will be good news but I dont think the news about this is true and I dont think it will happen.
I'm not sure what to believe if the compensation will be definitive to succeed with all the proposals to do so.
But what my counsel on this would be, is that, those involved should make sure to fill all necessary required files they are asked to fill. Do not sleep on it if you lost a none negligible sum of money.
Am using the FTX story as an example on this. Lot of victims did not had trust in the filing procedures for refunding of their lost money, and that made them not to comply, but presently you can see similar from this post I created, FTX announces 4th phase distribution.
When it would be paid, people who did not comply will not be eligible and regrets will follow
The thing is, most of these victims already forgot the credentials that they used when they signed up for ICO, such as their emails or passwords, or whatever info they need. Most already forgot because for sure, some already buried this experience a long time ago because they thought the compensation won't come anymore. Lucky for those who kept their credentials and still have the chance to get their hard-earned money. This onecoin story was one of the reasons why most people have the notion that crypto is related to scammers, hackers and other fraudsters. But come to think of it, the technology itself is not in any way a scam. It is the people who are using it for their own gain, that makes this market a scam.
Onecoin was never an actual cryptocurrency. Onecoin was a ponzi scheme disguised as a cryptocurrency. AFAIK, it had no protocol, no blockchain, no mining and hash rates, nothing. It was a typical multi-level-marketing ponzi pyramid garbage, where the people at the top of the pyramid had to gather more paid referrals. The creator of the Onecoin ponzi scheme Ruja Ignatova is still missing and nobody can find her. Maybe she's dead. Perhaps the authorities have found some bank accounts, that are linked to this scam and the funds in those bank accounts would be used to partially compensate some of the victims. This is good news for the victims, but please don't you ever link Onecoin with the crypto world.
By what means? Does the government have the money seized from Onecoin to give to the victims?
If the government has publicly announced that it will begin the compensation process, then they have no choice but to do so.
How will compensation be provided? In what currency? The market impact will depend on this. Will it be in dollars, USDT, bitcoin, or shitcoins (onecoin )?
If the money is issued in bitcoin, some people will start selling these assets, which will trigger a corresponding price movement in the market.
It's not exactly $4B I guess, it would only be a small portion same to what happened on the FTX scandal. I think it's good for the crypto community considering that people will reinvest it on crypto itself and it will make a difference, it may not be great but at least there is. Was the founder been imprisoned already or she was still hiding? I think there was that theory that she might have been dead already but I doubt it.
Do you think they'll be able to compensate that $4B full? I doubt it. I doubt if they ever got some funds to compensate the victims too.
Still good than getting nothing, but for the question if they can able to compensate such amount? Well maybe government already know that they have funds to do that and this is the reason why they demand once coin devs to compensate their victims
But also I really hope that people learn a valuable lesson from their bad experiences. And they will never think about coming back for investing on those ponzi schemes.
They experience to get scam by One coin and hopefully we can see that many people will have critical thinking and know how to avoid scams.
Theres what it called contract address, the contract address has the record of every address that made purchases of the coin during the ICO phase. The time, the amount and the address that made the purchases are being stored in the blockchain. In blockchain nothing is hidden everything is public and you will know the wallets that every cent came from. If the government want to make refund to the victims, all they have to do is to send back the money to those wallets that their records of purchase are recorded in the ICO contract address. There will be no room for scammers claiming anything from the money.
If the compensation is real, then its actually a good move, but people shouldnt expect to get back everything they lost. OneCoin was a massive scam and in cases like this, authorities usually recover only part of the money. So victims might get some refund, not full recovery. If people do get paid, it will help restore a bit of trust and show that scammers can still be tracked and punished. Thats a positive sign for the crypto space.
I doubt that the money will get back, while the result of that would be to say "pay these people back", they won't be able to, and either will be jailed, or just be punished and their accounts seized and whatever else. So we are not going to see this be any different, that woman was famous for a long time at the bull period, we are not going to see a dime of that. I am glad that I was never part of it, and did not lose a single cent, but I have seen too many people did and there is no way of coming back from that.
Money is gone, it's not that it would be shady way of not paying it back, I am saying even if onecoin team wanted to, they would not be able to because they no longer have that kind of money anymore.
There are procedures that need to be followed for the money to be returned to the investors affected by the scam case, and the process for this may take longer than expected due to the legal process involving various related parties, but the government should process the refund to the affected parties and the amount may not be able to be returned in full, but it should be better than nothing at all.
That's good for the victims of it. While this would give that hope for the victims, if we're specific on the market. Let's just think that the compensation is entirely good for the community and the market itself because lost money of the victims will be returned to them. And by the time it's partially or fully refunded to them, they can decide to still fund it for buying Bitcoin and not with some altcoins that they had no idea about what purchase they're doing. Otherwise, they're free to spend that as soon as they receive outside the crypto market.
I think this is completely fake news or people are being fooled, maybe this is their new scam so it is better to be careful with this. Because the One Coin team has not been found since 2017, then how will they suddenly return people's money
Source: https://www.lemonde.fr/en/les-decodeurs/article/2024/05/28/cryptoqueen-ruja-ignatova-mastermind-of-the-onecoin-scam-was-still-investing-in-dubai-while-under-indictment_6672858_8.html
Sometimes it can be a scam and they can also cheat you with your wallet address. And if One Coin returns everyone's money, will they be able to return the full amount. And as far as I know, my lost money can never be returned. When the cryptoqeen Ruja Ignatova was not found anymore, is it logical that One Coin will return everyone's lost money? No one should fall into the trap of any scammers. May God bless everyone.
The post comes from Cointelegraph, a reputable crypto news platform, and they mentioned the US Justice Department, so there's no reason not to believe that. Of course, there will be a verification process to make sure that only the rightful investors get compensated.
It's good for the community, and it will bring back trust in the authorities.
Is not that the government would put it on the news that everybody who had the coin should come for a compensation, they wouldn't handle it that way because there would be more scammers than even those who were affected so actually what I'm thinking they would use to no all the right people is the coin contract address because when they look at it they would no all the wallet that's connected to it, even those who had already sold would still be tracked and no that they are not eligible for the compensation, so actually even if scammers lays claim to anything the contract address will expose them.