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What Is Bitcoin Killer?

Someone wise had rightly said that All that glitters is not gold. With universal access to digital currency and the recent digital transformation fueled by NFTs and the metaverse, people are becoming greedy. On the other hand, some are taking advantage of their greed by plotting fraud schemes. One such historic scam in the history of cryptocurrency is the Bitcoin Killer.
It started in 2014, and over the course of three wild and frantic years, it managed to scam around 3.5 million people from 175 countries. Bitcoin Killer is termed the biggest cryptocurrency scam ever, but ironically, it wasn’t a cryptocurrency. It was running on a multi-level scheme (MLM).

Start Of Bitcoin Killer

Based in Sofia, Bulgaria, it started in 2014 when its co-founders Karl Sebastian Greenwood and Ruja Ignatova introduced it to the world as the first transparent and centralized cryptocurrency. They also come up with a promise of providing fortunes to all those who have missed out on Bitcoin.
Ignatova was known as the crypto queen of her time. She was using her appearance and mind to scam people with her cryptocurrency scam, The Bitcoin Killer. As a top MLM distributor, Greenwood was earning 5% of its monthly sales from anywhere in the world. This made him earn more than $300 million throughout.
With a peak rise in Bitcoin BTC investment, Ruja’s promises started looking enticing to the consumers, and they got attracted to her scheme that claims to make them rich in no time. There were always concerns regarding the blockchain of this Coin since a centralized digital currency is merely an oxymoron, and the nature of blockchains is always decentralized.
As they were using the credentials of Bitcoin’s success, the investors did not pay much attention to them being centralized. Ignatova made great efforts to make people believe that it will one day eventually take over the BTC, being the Bitcoin Killer.
There wasn’t anyone to convert the coins back to real money, but investors were still buying them because the company was promising to provide them with a solution for money withdrawal.

Frequently Asked Questions

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How Did OneCoin's Scam Work?

This cryptocurrency scam was running on a multi-level marketing scheme, more commonly known as a Ponzi scheme. Dr. Ruja Ignatova knows how to play. She introduced the scheme to the people with its most appealing point of making people rich in a short span of time.
They give commissions to their members to convince them to recruit new members to purchase their cryptocurrency packages.
Once the member buys onecoin through the company’s server, the amount goes directly to the private accounts of the organization, whereas the value of the Coin is shown in dollars to the purchaser. This value shows a peak by climbing up very fast, which makes the purchaser quite excited, provoking them to spread the scheme to their family and circle of friends so they can also invest in it.
Word of mouth has real convincing power, and this was how the scheme started working and flourished in no time. They also used marketing tactics like selling their merchandise with their own coins. In between, they also convinced the investors with significant updates like introducing their own exchange through which their coins can be traded, exchanged, and used for the purchase of real-world items.
No one had any idea that the values shown to them were entirely fake
Since it was a digital asset, it was based on a centralized database, and anyone with access to its server could easily play with the coin value.
When they promised their customers to make their package of $118,000 into millions within three months, they stayed on their word by simply changing the value. But when it came to liquidating it against real money, customers were simply not able to do that and would get a response: “Trading our currency is being slowed down by authorities, regulators, and haters.”

How OneCoin Got Caught?

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There was an exchange of mail between the co-founders that made the FBI suspected of their activity. It actually stated that their Coin was not mining actually but telling people shit. Also, the coins that were sold were never added to any verifiable public blockchain, and thus, they were referred to as fake.
It was in July 2018, when Greenwood was on the island of Koh Samui at his residence in Thailand, that he got arrested while Ignatova went missing on October 25, 2017, when she traveled to Athens, Greece, from Sofia, Bulgaria. She has not been seen since then and was added to the FBI’s Most Wanted List in June 2022, where a reward of $100,000 is placed for anyone providing information about Ignatova.
Greenwood has been charged with 20 years in prison and a fine of $443 million ($US300 million).
The investigative work was done by the FBI, Thai authorities, and Internal Revenue Service-Criminal Investigation, who conducted the investigation jointly with Special Agents from the U.S. Attorney’s Office.

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