Australian Securities and Investments Commission has warned the public that crypto project OneCoin “could be involved in a scam”

The Australian Securities and Investments Commission (ASIC) has warned the public that crypto project OneCoin “could be involved in a scam,” according to a notice released on May 28.

The Australian financial regulator has issued an official warning against OneCoin, the entity operating under website onecoin.eu, urging the public to not deal with this company as it is not licensed in Australia.

Similar to another warning concerning a different company published on May 21, the ASIC stated that OneCoin did not obtain two major licenses needed to offer investment services in the country. Specifically, the regulator noted that the company does not hold either a current Australian Financial Services license or an Australian Credit license from the ASIC.

In the notice, the ASIC also specified that the alleged scam entity is registered in Sofia, Bulgaria.

Founded in 2014, OneCoin is allegedly a crypto Ponzi scheme project that reportedly raised around $3.8 billion by defrauding investors with the promise of big returns and minimal risk. Although one of the leaders of OneCoin was recently arrested, the company was reportedly still operating as of March 2019.

Also read: Southern Indian state of Telangana plans to establish the country’s ostensibly first Blockchain district

Source: https://cointelegraph.com/news/australian-securities-and-investments-commission-officially-warns-against-onecoin