More than three years after defrauding thousands of cryptocurrency investors, authorities are still clamming down on the perpetrators of the OneCoin cryptocurrency Ponzi scheme. According to fresh reports today, a Singapore man, Fok Fook Seng, has been convicted for promoting OneCoin.
Many countries have issued warnings against the cryptocurrency project, including the United States which classified it as fraudulent.
The Singapore Police Force said on Wednesday that Fook Seng, 52, will pay a fine of S$100,000 (roughly $72k) for committing the offense between January 2016 and June 2017. The police said it was the first kind of crime as he was charged in April last year under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
According to the report, Fook Seng was a director of locally registered companies, Wholesale Trading Firm A Roboclean (S) is one of them. He advertised and promoted the scheme at a large scale event using a Facebook page OneLife One World Team Singapore.
With the MLM Scheme involving OneCoin that he promoted on the page, participants were made to purchase packages that contained online educational courses. And each purchase attracted promotional tokens, telling them that these tokens could be used to “mine” OneCoin.
According to the scheme, participants would also receive commissions if they make referrals to invite other people to buy these packages.
With the tactics used in the MLM scheme, 180 people in Singapore and other countries had already signed on to the scheme as of 1, June 2017.
In April last year, another Singapore man, Lim Yoong Fook, was also charged with the same offense of promoting OneCoin. He was accused of incorporating a company to promote the Ponzi scheme.
According to the police, the court case is still ongoing and the penalty for these offenses is a fine of about S$200,000 (roughly $143k) or a five-year jail term. He could as well be unfortunate to face both penalties.
The police concluded, saying, “Cryptocurrencies are not legal tender, not used by any government or backed by any assets or issuer. Members of the public are reminded not to deal with unregulated entities or persons when they come across such investment opportunities.”