The Mumbai Economic Offences Wing (EOW) filed a charge sheet last week against six individuals arrested in April for their involvement in the OneCoin cryptocurrency fraud. This legal action aims to prevent the accused from securing bail and potentially evading further prosecution.
Deputy Commissioner of Police (Crime) Tushar Doshi confirmed the filing, stating it was crucial to keep the accused in custody. The OneCoin operation, recognized globally as one of the largest cryptocurrency Ponzi schemes, defrauded investors worldwide through promises of exponential returns on a digital currency that lacked any real market value. Of the twenty-two individuals facing charges in the OneCoin case, six currently remain incarcerated, while others have been granted bail. The EOW moved to file the primary charge sheet as the sixty-day period for such a filing was nearing its end, particularly for four key accused.
The EOW's investigation into the OneCoin scheme intensified in late April, leading to the initial arrest of eighteen affiliates. Four more individuals connected to the operation were booked within days, and two additional arrests followed in May. Arrest warrants have since been issued for six other affiliates, who currently remain at large. These individuals are sought in connection with promoting the fraudulent cryptocurrency investment.
Investigators have made progress in tracing and seizing assets linked to the scam. The EOW successfully froze nineteen of the thirty-one bank accounts identified as channels for laundering stolen investor funds. The total amount of funds seized from these accounts stands at $3.87 million USD. These frozen assets represent a portion of the illicit gains from the global OneCoin Ponzi scheme.
Despite the arrests of its affiliates in India, OneCoin's central management has maintained a public silence. The company has yet to acknowledge or address the legal actions taken against its promoters in the country, even two months after the initial detentions. This contrasts sharply with their past responses to other controversies.
For instance, OneCoin CEO Pierre Arens previously informed Vietnamese affiliates that the government had issued the company a license to operate. A document, circulated among affiliates, cited a license granted through Trident Crypto Academy, one of many shell companies used by OneCoin. However, Vietnamese authorities swiftly identified the document as a forgery, a development widely reported by both local and international media outlets.
Following the exposure of Arens' false claim in Vietnam, OneCoin issued a generic warning to its affiliates, shifting responsibility onto them. The company frequently attempts to deflect regulatory actions or legal issues by blaming its network members. When such deflection is not feasible, particularly in cases like the Indian arrests where affiliates are detained for promoting a clear Ponzi scheme, OneCoin management typically opts for complete silence. This pattern suggests a deliberate strategy to distance the core operation from the legal consequences faced by its promoters.
The Mumbai EOW continues its efforts to bring all involved parties to justice and recover additional funds for victims of the OneCoin fraud.