AGCM informs about sanctions of over 2.5 million euros against OneCoin for operating pyramid scam and promoting ponzi scheme
ONE LIFE NETWORK LTD has been ordered a sanction of 2 million euros and ONE NETWORK SERVICES LTD 500.000 €. There are also some OneCoin's collaborators fined: Easy Life Srl 80.000 €, as well as with the registrants of the onecoinsuedtirol.it sites, Onecoinitaliaofficial.it, onecoinitalia.com. 5.000 euros each.
Here's the whole press release translated with Google Translate:
PYRAMID SALE AND PROMOTION INSURED, SANCTIONS FOR € 2,595,000 ONECOIN CRITATOMETER
The Competition Authority, at the conclusion of its inquiry, found that the methods used by One Life Network LTD with the help of other professionals to promote the purchase of the OneCoins Virtual Coin and training packages sold in conjunction with This was incorrect in terms of information provided to consumers about the product's characteristics and its sales system with pyramidal features. The practices in question ceased in Italy following the suspension measures adopted by the Authority prior to ONE NETWORK SERVICES LTD and the registrants of onecoinsuedtirol.it, onecoinitaliaofficial.it, onecoinitalia.com, and then on the companies ONE LIFE NETWORK LTD, Easy Life Srl ( all.
In particular, the promotional activity was centered on the promise that the consumer, after acquiring a training package, could obtain OneCoins (through a process of transforming the rough currency called mining) and that subsequently those virtual coins would have increased the Their value as a result of their dissemination, all the elements that they did not find in the course of the proceedings. One Life's business proposal was therefore based on a false, high-profit prospect: for example, the purchase of the $ 27,530 package would have allowed a value of € 3,000,000 after just two years of joining the program.
OneCoin's dissemination took place through a pyramid sales system since recruiting new consumers was the sole purpose of sales activity and was strongly encouraged by the recognition of various bonuses, the only real and effective remuneration of the program. The purchase of the training kit in fact concealed the entry fee required to enter the system and convince other consumers of the goodness of the product. In fact, the OneCoin Criptomoneta, which was not possible to verify existence and consistency, was the pretext for a system that exclusively aimed at (and was supported through) the inclusion of other consumers.
The procedure has enabled the Court to ascertain whether the practice was incorrect in relation to the deceptive modalities in which the features, terms and conditions of the proposed product were proposed, and whether the system incorporated a pyramid sale referred to in the Consumer Code Commercial practices in any case misleading. Therefore, in the light of the numerous evidences gathered thanks to the valuable collaboration of the Antitrust Special Department of the Guardia di Finanza for the conduct of numerous investigative investigations, the Authority concluded the proceedings by imposing sanctions against the companies ONE LIFE NETWORK LTD (€ 2,000. 000), ONE NETWORK SERVICES LTD (€ 500,000), Easy Life Srl (€ 80,000), as well as with the registrants of the onecoinsuedtirol.it sites, Onecoinitaliaofficial.it, onecoinitalia.com. (€ 5,000 each).
Rome, 10 August 2017