Having extorted as much as USD 4.4 billion from users, the financial pyramid was able to function up to last week. Today, the website is already closed.
This is the end...
According to the reports, the website of the largest financial scam in history, has gone offline. DNS record, a set of rules providing a full control of the Internet domain shows, however, that the company standing behind OneCoin, even though being a subject to legal investigation, is still its owner.
Interestingly, this scheme aroused suspicion as early as in 2015, when a scheme-monitor, BehindMLM, published a report in which it presented alarming information. The problem then was the incompatibility of information about the company's founders. Ruja Ignatova, a crypto fleeing queen, reported conflicting information about her own education and it was just the tip of the iceberg.
In subsequent years, national authorities around the world warned consumers that OneCoin could be a financial pyramid. First and foremost, it was suspicious that the program promised very high profits for a small one's own contribution.
Some time ago, the co-founder of this financial pyramid, Konstantin Ignatov, pleaded guilty. For money laundering and for a great number of financial frauds there is a possibility that he may be imprisoned for up to 90 years. There is no trace of his sister, however, as she is said to be under the protection of a rich and powerful Russian family.
Watch out for a new pyramid
Cointelegraph issued a warning to HEX a few days ago. Critics quickly questioned the legitimacy of this financial tool, calling it a colossal marketing ploy and accusing it of invading privacy. There is a group of supporters, though, who cannot wait to start earning money from it.
Richard Heart, one of the representatives of HEX, agreed to confront Cointelegraph. He explained then that this system provides the world's first high-interest blockchain certificate of deposit. The monetary value of withdrawals, however, remains dependent on the Hex's total market value at the moment of maturity.
The company provides a kind of cryptographic version of a banking instrument. The user closes their funds, and then, when the deadline expires, they receive the amount they have invested and an interest.
"Banks use your money as a sort of collateral that’s just an excuse for them to borrow money from the government at extremely low rates."
- said Richard Heart.
Will HEX prove to be another financial pyramid? Vlad Costea, a journalist from the Bitcoin Magazine, had already thrown such allegations toward Hex in January. In his publication, he presented a number of arguments in favor of it not being a legal venture. It is worth adding that, originally, this scheme was called Bitcoin Hex.
How will this end? Will people finally draw conclusions after the collapse of OneCoin? Will HEX become its successor? Undoubttedly, this company is another marketing and sales champion. When making any investment decisions, it is worth looking at the project from the technical side. Not everything is as colorful as someone describes it after all...