A German tax official helped a OneCoin affiliate dodge a money laundering investigation, newly unsealed court documents reveal. The case offers rare glimpse into how the cryptocurrency Ponzi scheme managed to stay ahead of authorities as the scheme crumbled.

In September 2016, a bank employee in Germany flagged a suspicious €28,000 transfer request to Singapore. The sender, a OneCoin affiliate, showed what the employee described as a "desolate financial position." The bank filed a Suspicious Activity Report as required by law, triggering a formal money laundering investigation into two OneCoin affiliates.

Then someone tipped them off.

An employee at the Ehingen tax office learned about the investigation. He was also a OneCoin affiliate and knew one of the men under investigation through local OneCoin circles. He picked up the phone and warned his friend about the probe.

The OneCoin affiliate rushed to the bank and demanded the €28,000 be transferred to Singapore within 24 hours. Prosecutors in Ehingen eventually caught wind of the leak and charged the tax official with breach of official secrecy.

In court, the tax official initially denied wrongdoing. When confronted with evidence, he admitted tipping off his acquaintance but offered an explanation: he was certain the case would be dismissed anyway. He'd attended a OneCoin promotional event himself where he watched his friend receive investor money. "I know where the money came from," he told the court, appearing without a lawyer. He said he warned his friend to prevent the funds from being frozen—funds that were supposed to flow to Singapore to pay investor bonuses.

OneCoin was in crisis at that moment. Banks globally were terminating the scheme's accounts faster than OneCoin could create shell companies to replace them. The scheme adapted by turning local affiliates into money laundering mules. These mules would collect newly invested funds through personal accounts, launder them offshore, and receive "bonuses" from OneCoin in return.

The strategy worked, at least temporarily. The €28,000 made it to Singapore as intended. The case against the two OneCoin affiliates was eventually dropped with no public explanation.

The tax official paid a price. He was found guilty and ordered to pay a €5,400 fine.

By April 2017, Germany's top financial regulator, BaFin, had banned OneCoin nationally. The scheme had already collapsed three months earlier, suspending all affiliate withdrawals. But by then, the damage was done—and some of the money was already gone.

🤖 Quick Answer

How did a German tax official compromise a money laundering investigation into OneCoin affiliates?
An Ehingen tax office employee, who was also a OneCoin affiliate, learned about a formal investigation triggered by a suspicious €28,000 transfer to Singapore and warned the subjects under investigation, compromising the authorities' ability to pursue the case effectively.

What suspicious activity triggered the initial money laundering investigation?
A German bank flagged a €28,000 transfer request to Singapore in September 2016, submitted by a OneCoin affiliate displaying severe financial difficulties, prompting authorities to file a Suspicious Activity Report and initiate formal proceedings against two affiliates.

Why was the bank employee's report significant in detecting OneCoin's operations?
The Suspicious Activity Report represented a critical detection mechanism within anti-money laundering compliance systems, identifying unusual fund transfers that revealed OneCoin's affiliate network attempting to move capital through international

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