Two Singaporean company directors charged for promoting ‘fraudulent cryptocurrency,’ OneCoin

Two Singaporean company directors have been charged by local authorities for allegedly promoting OneCoin, a fraudulent cryptocurrency, using a multi-level marketing scheme, reported local news outlet, The Straits Times.

In a statement, the Singapore Police Force (SPF) said,

“The supposed cryptocurrency OneCoin is purportedly founded by a Bulgarian, and has several features that are similar to Bitcoin. Several countries including New Zealand have issued warnings to the members of the public against having involvement with OneCoin.”

OneCoin was founded in 2014 by Ruja Ignatova in Bulgaria and has been termed a fraudulent cryptocurrency by the United States. Additionally, several countries including New Zealand and Bulgaria, have warned people about the cryptocurrency scam.

On 10 April, Lim Yoong Fook, Director of Singapore-based interior decoration firm One Concept, was charged under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.

While Lim Yoong Fook was charged with two offenses, Fok Fook Seng, Director of locally registered companies, faced one charge under the same Act. The latter’s bail was set at $30,000, while the former was offered bail at $60,000.

According to reports, the pair took investments in return for education courses and OneCoin tokens, while compensating people under an initiative called “OneLife Network Global Compensation Plan.”

The offense was reportedly committed between June 2015 and June 2017, by both the offenders over different time periods.

Although the details of the scheme, including the amount of money and the number of participants involved were not revealed, Lim was accused of using his interior decoration firm to promote the scheme.

The Monetary Authority of Singapore (MAS) listed OneCoin and One Concept on the Investor Alert List (IAL), a list of unregulated entities which may have been wrongly perceived as being licensed by the MAS. The police said,

“[..] investors should bear in mind that these entities have had a past record of being wrongly perceived by others as being licensed by the MAS when they are not.”

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