Samoa's central bank has slammed the brakes on OneCoin, blocking all financial transactions tied to the cryptocurrency scheme after determining it operates as an illegal pyramid.
The Central Bank of Samoa announced the ban on May 3rd, citing a surge in residents trying to wire money out of the country to buy into OneCoin. Despite repeated warnings that the scheme carried "very high risk," Samoans kept sending cash overseas, prompting regulators to act.
"There are still a large number of people wanting to remit or transfer money out of Samoa to invest in this OneCoin cryptocurrency promotion," the bank said in its statement. Officials decided a complete transaction freeze was the only way to protect both citizens and the nation's fragile foreign currency reserves.
The ban will stay in place indefinitely. The bank said it will only lift restrictions once officials determine the public and economy face no further danger.
OneCoin's track record makes the urgency clear. The scheme collapsed across nearly every country by 2017 and 2018, except in a handful of developing nations. What makes Samoa particularly vulnerable is its size. With just under 200,000 people, the island nation has limited economic buffers. If residents poured money into OneCoin's offshore shell companies and lost it all, the impact could devastate the entire economy.
The scheme had apparently found an audience in Samoa despite its global implosion elsewhere. That persistence forced the Central Bank to take a hard line, treating OneCoin transactions the same way it treats money laundering or sanctions violations.
This is a bet that transparency and enforcement can stop the bleeding. Whether residents will respect the ban or try to move money through alternative channels remains to be seen.
🤖 Quick Answer
What action did Samoa's central bank take against OneCoin?The Central Bank of Samoa announced a complete ban on all financial transactions related to OneCoin on May 3rd, blocking residents from transferring money overseas to invest in the scheme. The decision followed determinations that OneCoin operates as an illegal pyramid scheme posing very high risks to citizens and threatening the nation's foreign currency reserves.
Why did Samoan regulators implement the transaction freeze?
Regulators implemented the freeze due to a surge in residents attempting to remit money abroad for OneCoin investments, despite repeated official warnings about the scheme's illegality and extreme risks. Officials determined that a complete transaction ban was necessary to protect both citizens and Samoa's fragile foreign currency reserves from further depletion.
What is OneCoin's operational structure?
OneCoin operates as an illegal pyramid scheme disguised as a cryptocurrency promotion. Participants invest
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