[HN Gopher] Cryptoqueen: A woman scammed the world, then vanishe...
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       Cryptoqueen: A woman scammed the world, then vanished (2019)
        
       Author : mgh2
       Score  : 192 points
       Date   : 2021-05-15 15:49 UTC (7 hours ago)
        
 (HTM) web link (www.bbc.com)
 (TXT) w3m dump (www.bbc.com)
        
       | jacquesm wrote:
       | Pretty good chance that she didn't vanish but was killed,
       | vanishing is a trick that is becoming exceedingly hard.
        
         | brobdingnagians wrote:
         | Especially disappearing from people with money and power.
         | 
         | > "I can't discuss that. It starts to get very very very scary,
         | very very very fast." According to Bjercke, Dr Ruja never
         | expected OneCoin to grow so big. People involved at the early
         | stages have told him it was never supposed to be a billion-
         | dollar scam. She tried to close it down, he says, but the dark
         | forces wouldn't let her.
         | 
         | Even if you think you are going to get something and profit,
         | one big reason to stay away from scams and fraud is that there
         | are big players in the area that are 1. already established, 2.
         | willing to do much worse things than you to get their way, 3.
         | don't want someone else stepping on their territory. The mafia
         | doesn't let petty thieves steal in their areas. You simply
         | become a pawn to their schemes; then forced to do things you
         | never anticipated having to do.
         | 
         | Also reminds me of the Inner Ring by CS Lewis [1]. Stay away
         | from secret societies, fraud, corruption, and crime. There are
         | some very bad people in the world with some very organized
         | problems.
         | 
         | It's a much simpler life to just be an honest, unknown, middle
         | class person.
         | 
         | [1] https://www.lewissociety.org/innerring/
        
           | Baeocystin wrote:
           | Excellent read, and spot-on, IMO. Thanks for the link.
        
         | da_big_ghey wrote:
         | i am hating this fact. now each document is electronic
         | validationed so cannot fake. no way for to leave and become new
         | person. no way for to disappear. damn surveilance state.
        
           | andix wrote:
           | In some countries you can buy real identities with real
           | passports, including a citizenship. Should be possible to do
           | in Serbia or Bosnia. Maybe even in Bulgaria (EU).
           | 
           | During the war in Yugoslavia a lot of records got lost and it
           | is still common practice to reissue birth certificates based
           | on some witness statements.
        
             | da_big_ghey wrote:
             | true, and for these i am many glad. by end of my life time,
             | though, it is maybe not longer be possibile. biometric
             | identity making it so by some time.
        
               | raunak wrote:
               | At the end of the day, you can shuck all your
               | responsibilities, buy land in some remote area of the
               | world (Midwestern USA, Canadian Yukon?, South America),
               | and live as a hunter-gatherer - there's nothing stopping
               | you and after a certain point you'd be effectively
               | isolated and identity-less
        
               | macintux wrote:
               | You'd have to find someplace without property tax at the
               | least, I'd think.
        
           | krisoft wrote:
           | In what sense do you want to disappear? Do you want the
           | option to abandon everyone you know and start a new life in a
           | new place? You can totally do that. The state is not stopping
           | you. If people from your former life report you missing and
           | the police finds you, you can always say "i do not wish to be
           | contacted by them" and if you are an adult they will leave
           | you at that. Pretty extreme thing to do, but happens all the
           | time.
           | 
           | Do you want to get away with murder? Run away from debts and
           | obligations? Why would we as society let you do that?
        
             | Mediterraneo10 wrote:
             | Not all countries provide adequate protection for those who
             | wish to go no-contact with family. Sometimes you can hide
             | from former friends and acquaintances, but family members
             | are allowed to continue trying to obtrusively contact you
             | or confront you in public, or can involve the police again
             | and again. In countries where family relationships are
             | considered especially sacrosanct, the police may began to
             | hassle you as the supposed bad guy if you are avoiding
             | contact with parents.
        
             | folli wrote:
             | That's actually a good point.
             | 
             | However, it becomes much murkier from a moral standpoint if
             | you consider a scenario where you try to hide from a
             | corrupt state for e.g. digging up dirt on a high ranking
             | official. Or due to political, racial, religious oppression
             | etc.
        
         | [deleted]
        
         | ardit33 wrote:
         | Could be. But also the Balkan mafia operates in another level
         | when it comes to identities. There are stories, of eventually
         | someone getting caught, and it is realized that the guy was
         | wanted for 15+ years, by some (usually Western Europe) country,
         | interpol and all, has changed their names 3 times and they live
         | care free in another country.
         | 
         | They completely change identities, new names, new passports,
         | new looks, new citizenship. With enough money, it becomes just
         | a routine thing. It is like they run a Tor network ring, but on
         | personal identities.
         | 
         | Often, they are found when they get in trouble with their old
         | pals (usually unsettled scores), and not the police.
        
           | blackearl wrote:
           | They're never truly living carefree. Everywhere you go you'll
           | always be looking over your shoulder, waiting for the day
           | they get you.
        
             | vbsteven wrote:
             | Katatonia - Omerta is an amazing song about this.
        
         | dmix wrote:
         | Osama Bin Laden had an extremely long run, considering the CIA
         | and NSA was after him at max agenda. Almost embarrassingly
         | long.
         | 
         | Ayman al-Zawahiri (the defacto "leader" of Al-queda today)
         | could easily be in some back room hidden in Pakistan right now.
         | He technically is not listed as dead either.
         | 
         | https://en.wikipedia.org/wiki/Ayman_al-Zawahiri
         | 
         | Stranger things have happened in our world.
         | 
         | It depends on how much these experts law enforcement people
         | care too. A random IRS guy found the Silk Road guy, not some
         | fancy investigation. The question is anyone in India, or where
         | ever with corrupt police and military, are even looking hard
         | for her.
         | 
         | You probably need someone like the Americans, UK, or Russians
         | (see Shamil Basayev
         | https://en.wikipedia.org/wiki/Shamil_Basayev) IRL to really
         | care at this level.
         | 
         | Note: I haven't listened to the podcast or deeply into her,
         | just my point of view on that subject.
        
           | skinnymuch wrote:
           | Bin Laden is one thing. But what's the use of taking out the
           | de facto leader of an org that will have no problem having a
           | replacement immediately like Al-queda? It makes more sense
           | when you're doing a full on or strong attack like right after
           | 9/11 or for When ISIS was brought down a ton.
           | 
           | --
           | 
           | For the Silk Road. That's true. However the next two silk
           | roads had the people arrested fairly quickly.
           | 
           | -
           | 
           | Note: I don't know much or anything about hiding out or
           | disappearing.
        
             | Nasrudith wrote:
             | The use of it is depleting the leadership chain of command
             | and leave third and fourth stringers at the top at best. It
             | won't actually eliminate them but it will reduce their
             | effectiveness greatly.
             | 
             | In Al Qaeda's case the futility comes more from the vacuum
             | in their niche.
        
             | dunmalg wrote:
             | "living charismatic leader the enemy can't seem to catch"
             | has much greater recruitment value than "dead leader
             | martyred, but we'll keep fighting".
        
         | yawaworht1978 wrote:
         | Nope, it is not that hard, just cannot live the big life. I am
         | not so sure if she was the real head of operation anyway, more
         | like the publicly visible rep(bit like a nominee director).
        
       | encryptluks2 wrote:
       | Cryptos have become more like a cult than actual tech. Don't get
       | me wrong, some of them are legitimate but try pointing out their
       | deficiencies in their communities and you'll get attacked from
       | all angles. Most people involved in crypto aren't there for the
       | tech, they only care about money they are making from it.
        
         | blocked_again wrote:
         | > Most people involved in crypto aren't there for the tech,
         | they only care about money they are making from it.
         | 
         | Most people involved in anything aren't there for the thing,
         | they only care about money they are making from it.
         | 
         | There. Fixed it for you.
        
         | PMan74 wrote:
         | Most people involved in tech aren't there for the tech, they
         | only care about money they are making from it.
         | 
         | (And there's no judgement in that, if you make a living selling
         | fridge freezers it doesn't mean you have to care much about
         | fridge freezers)
        
           | encryptluks2 wrote:
           | That assumes there is no harm in what they are doing. A lot
           | of these cryptos are more like pyramid schemes. Selling
           | freezers is one thing, but if you know the freezer has some
           | major defects and you continue selling them telling everyone
           | how great they are while misleading them about issues then it
           | is more like a scam. Don't get me wrong, some cryptos have
           | the potential to make a lot of people money but often the
           | people making the money are the initial investors not the
           | public.
        
             | matheusmoreira wrote:
             | > often the people making the money are the initial
             | investors not the public
             | 
             | What is wrong with this? Of course people who believed in
             | cryptocurrencies since the beginning have seen greater
             | returns compared to people who started investing now.
             | 
             | Every investment disproportionally rewards early adopters.
             | Stocks, even simple savings accounts.
        
           | deckard1 wrote:
           | I mean. Yes and no. Someone doing some CRUD apps at some car
           | insurance firm just to put dinner on the table is completely
           | fine.
           | 
           | But then you have Theranos and WeWork and all of that late
           | '90s dot-com crap. Most of those companies had nothing to do
           | with tech, but still raked in lots of VC money hoping to
           | sucker people into purchasing their worthless stock after
           | their inflated IPOs.
           | 
           | Of course, it has to be mentioned that the line between fraud
           | and value gets incredibly fuzzy in tech. So much tech is
           | "solutionized" into products that solve problems that are
           | nonsense to begin with. Everyone believes they need cloud-
           | this, or managed K8S, or auto-scaling whatever. The whole
           | industry looks like a fraud at times. Especially enterprise
           | marketing and sales. IBM, Oracle, and others have made a
           | racket on this. And yes they have actual products with actual
           | features, what they are _selling_ are dreams and fairy tales.
           | Look closely at crypto and you 'll see the same cottage
           | industry around it today. I mean, what is NFT other than
           | credit default swaps (CDS) for the art market? It's
           | abstracted ownership ("ownership" with a _huge_ asterisk next
           | to it). You even have initial coin offerings (ICO). Every
           | thing from the dot-com and 2008 financial engineering crisis
           | have all been replicated in crypto.
        
             | alisonkisk wrote:
             | Dot-com bubble was real companies with inflated valuations
             | from speculators and experimental business models that
             | weren't all solvent.
             | 
             | Theranos was trying to make and sell a real product but the
             | product didn't work so they lied and cheated to cover that
             | up because they had nothing else to offer.
             | 
             | Every business is dreams and fairytales because extra
             | sizzle gets more customers
             | 
             | It's different from cryptocurrencies which are pure scam
             | plays from the start.
        
         | PragmaticPulp wrote:
         | At least within my bubble, the people I know who spend the most
         | time trading cryptocurrencies hold no illusions that
         | cryptocurrency and utility tokens are actually useful. They
         | approach it like a game: Try to spot the next big hype cycle
         | before everyone else, then try to exit the trade before the
         | hype dies out and the price retreats.
         | 
         | It's like trading stocks, but without any fundamentals or
         | underlying value to interfere with the "to the moon" narrative.
        
           | andrepd wrote:
           | There _are_ definitely fundamentals, there 's no point
           | pretending that there are not. But at this point it's now
           | buried under mountains of hype, and has balooned to many
           | times its reasonable price (again, reasonable in terms of
           | fundamentals/utility, not speculation).
        
       | narrator wrote:
       | You know how you create a cryptocurrency that immediately rivals
       | Bitcoin with no effort? You fork Bitcoin and give it a cute
       | mascot. Dogecoin has a $65 billion marketcap and was made in
       | about two hours as a JOKE. It's totally open source, so there's
       | nothing even illegal about it:
       | 
       | https://twitter.com/BillyM2k/status/1393271686384914432/phot...
       | 
       | I remember seeing Ethereum starting up and they had a demo where
       | you could make your own cryptocurrency in about a page of code. I
       | thought this shit is never going to work. I WAS SO WRONG.
       | 
       | I am sure this cryptoqueen scammer put a ridiculous amount of
       | effort into her scam when these people who actually made absurd
       | amounts of money legally in altcoins did far less work.
        
         | agumonkey wrote:
         | a few semi pro traders i've seen made one for the lulz (with
         | absurd names like karencoin) and the price rocketed (illiquid
         | asset) which made them withdraw their trade from the market
         | because they assumed it was a sign of dumb level bubble hit
        
           | narrator wrote:
           | How about Losercoin? Two self-described broke losers in rural
           | China created it and put their life savings into providing it
           | with liquidity. It now has a 53 million dollar market cap.
        
             | alisonkisk wrote:
             | Isn't all this altcoin "market cap" stuff fake cap
             | generated by bots that thinly trade new coins until a
             | sucker buys them out?
        
         | KETpXDDzR wrote:
         | AWS and until recently Azure have Blockchain-as-a-service. The
         | real winner of a gold rush are the people selling pickaxes.
         | 
         | https://azure.microsoft.com/en-us/services/blockchain-servic...
         | 
         | https://aws.amazon.com/blockchain
        
           | dehrmann wrote:
           | With cryptocurrencies, the pickaxes are GPUs and ASICs. I
           | doubt this is a serious revenue generator for AWS because of
           | how few things actually need and use blockchains. It's mostly
           | there so consultants can sell blockchain solutions to
           | companies desperate for a blockchain strategy.
        
             | hunter2_ wrote:
             | Out of whatever cases may exist for what you're describing
             | (re: desperation, etc.), do they almost always involve
             | someone getting conned?
        
           | 55555 wrote:
           | > The real winner of a gold rush are the people selling
           | pickaxes.
           | 
           | No I'm pretty sure the people who hoarded gold (coins) have
           | made more money from blockchain than IBM and AWS.
        
             | xondono wrote:
             | Nvidia is getting nice profits, and with way less risk than
             | those "investing" in crypto
        
             | aplummer wrote:
             | You'd think so, but Pickaxe coins like the graph have
             | significantly less gains than dog meme coins. I actually
             | think a sure sign of when a coin won't go mega is when it
             | tries to do something practical, since then its obvious its
             | not that great a practical utility after all (as almost
             | nothing is on a blockchain, except gambling).
        
           | arambhashura wrote:
           | Microsoft is apparently shutting down its blockchain service,
           | though: https://docs.microsoft.com/en-
           | us/azure/blockchain/service/mi...
        
         | dleslie wrote:
         | Dogecoin may as well be called Eloncoin, now; the value tracks
         | his tweets about it.
         | 
         | A practically-infinite cap and always-easy mining? It's
         | designed to rapidly deflate in value. _That's the joke_. And
         | yet it bubbles.
        
           | eloff wrote:
           | Those properties mean it could actually work as a currency,
           | unlike bitcoin.
           | 
           | It also can handle higher transaction volume with cheaper
           | fees.
           | 
           | I don't think it'd be a good currency, but it's funny to
           | compare it with bitcoin which was marketed as such but is
           | totally a failure for that use case.
        
           | aplummer wrote:
           | ELON already exists, 630m market cap right now...
           | 
           | https://www.dextools.io/app/uniswap/pair-
           | explorer/0x7b736449...
        
           | spinny wrote:
           | He just realized that he can, so he does it.
           | 
           | Probably got on the market before the BTC/Tesla announcement
           | and then pumped it, then thew DOGE in the for the memes and
           | then Tesla announces that BTC consumes too much energy and
           | that are looking out for a greener alternative. ETH is
           | switching to PoS. At this point, he is probably slowly
           | filling bags of ETH and gonna pump as soon as PoW on ETH
           | ends. Expect a series of excited twits from Elon then
        
             | dleslie wrote:
             | I expect the same, incidentally.
             | 
             | As soon as Tesla stated that btc was bad for the
             | environment it was clear they'd be leaping on eth in the
             | future.
        
         | gh55 wrote:
         | Just so you know, Dogecoin's blockchain is trivial to attack;
         | its ledger can be altered at such low cost it is unlikely
         | several such attacks aren't already underway. Upon publushing
         | of new "longest chains" it will no longer be possible to
         | determine which doge chain is valid, putting all balances in
         | danger until the Proof of Work mechanism is replaced - which
         | will only work briefly before the same problem recurs, due to
         | the nature of how blockchains are secured. This will
         | demonstrate why Bitcoin and Ethereum are valuable. More info:
         | https://www.intuitecon.com/post/why-dogecoin-is-going-to-zer...
        
         | paulpauper wrote:
         | fraud is profitable because it makes exaggerated claims. that
         | is why people do it.
         | 
         | legit projects are expensive and have high rate of failure
         | 
         | doge is just one success out of probably thousands of others
         | that tried similar concepts. Doge was able to gain a loyal
         | following and community early on.
        
         | trompetenaccoun wrote:
         | She's not a programmer. As far as I know OneCoin never even had
         | a blockchain, it was just a regular ponzi scheme they sold as
         | cryptocurrency. Not the first time this happened and it won't
         | be the last, sadly. I actually have a distant relative who
         | bought into another such scam.
        
           | bennysomething wrote:
           | It didn't have a block chain. There's a great BBc iPlayer
           | podcast about it, crypto queen. Worth a listen. Apologies if
           | this has already been mentioned.
        
             | djrogers wrote:
             | That detail is in the article, which is about the making of
             | the podcast...
        
         | Waterluvian wrote:
         | I think the difference is likelihood of success.
         | 
         | If you and I did what you'd describe it would almost certainly
         | not succeed. A high effort fraud has a much higher likelihood
         | of returns.
        
       | puranjay wrote:
       | "Hey hey heyyyy"
        
       | RichardHeart wrote:
       | Here's how you solve scams: 1. More law enforcement (Doesn't work
       | in countries that can't even enforce laws against murder so well.
       | Only works after the fact, and the money is nearly never
       | recovered.)
       | 
       | 2. Yell as loudly as you can for people to stop getting scammed.
       | (They thing you're wrong, and you have no marketing budget to get
       | your voice heard. It takes 10 units of energy to disprove
       | bullshit and only 1 unit of energy to generate it. It's harder to
       | convince people they've been scammed. This is also known as the
       | curse of the duped.
       | 
       | 3. Actively advertise superior investments with longer time
       | horizons so that they don't have the money sitting in their hands
       | to so easily be scammed out of. You can even generate a marketing
       | budget to get eyes away from the scams onto the good things. (You
       | will be yelled at by everyone that doesn't like what you built.
       | Especially if its successful.)
        
       | dmix wrote:
       | > I tested this explanation on my mother, the family technophobe,
       | and she told me I'd failed to make it clear enough and should
       | start again. So don't worry too much if you don't follow it
       | either
       | 
       | It makes you wonder if the BBC author should have tried to
       | explain what crypto was at such detail at all in the first place.
       | 
       | The 3 long technical paragraphs disrupt the narrative.
       | 
       | Just give some witty one or two lines for the luddites. I doubt
       | they care about public internet databases anyway.
        
         | rbanffy wrote:
         | Not knowing this little bit of what a cryptocurrency is allowed
         | Onecoin to be such a large scam.
        
       | Marciplan wrote:
       | This podcast had such insane production quality --- but also a
       | sincerely huge lack of journalism. So. Many. Holes. In every
       | thing they "report".
        
         | 55555 wrote:
         | lol kthx Dr. Ruja
        
         | raunak wrote:
         | Examples of said holes? Out of curiosity
        
       | woodpanel wrote:
       | Interesting how on a per-capita base, Germany where I live, seems
       | to be the most gullibe society. I think it is not a coincidence
       | that Ruga lived and worked in Germany prior to OC most of her
       | life.
       | 
       | I was almost sucked into OC. Some non-tech friend in his mid-
       | thirties approached me about it, he had already invested all his
       | savings (~20kEUR and another 10kEUR from his mother).
       | 
       | He gave me OC's prep-talk and got me interested, so as an
       | overpaid programmer within minutes I've concluded: Why not buy
       | the biggest package or even more?
       | 
       | Hooked as I was, every piece of due dilligence I've tried to
       | apply made the whole thing appear as a scam quickly. I've phoned
       | with the BaFin (our financial authority) multiple times it took
       | about a year afterwards for a very timid response against OC (in
       | hindsight their lack of action in this case mirrors their lack of
       | competence in the wirecard scam).
       | 
       | For me there are two major culprits:
       | 
       | 1. OC leadership, especially Ruga
       | 
       | I think what makes OC so sinister is how they specifically
       | targeted groups of people with low technical knowledge and who
       | feel (and are) financially unskilled / underpriviledged. Once
       | they've had to flee one country they've moved to another nation,
       | again looking for underprivliged non-technical people.
       | 
       | The OC footsoldier's that I've met all came from Germany's lower
       | classes (I guess most marketers are victims as well).
       | 
       | In Britain they've targeted mostly muslims. They went to India,
       | China and so forth.
       | 
       | 2. Financial Authorities
       | 
       | A scam that targeted small time investors (entry package was
       | 500EUR; who often don't even know the name of their financial
       | authority or what it does) highlights the importance of taking
       | action for a BaFin: A fair society cannot treat predation of poor
       | people differently that that of rich people. Swifter action
       | whould have prevented a lot of the levels that pyramid eventually
       | built up.
       | 
       | 500EURs or 5.000EURs in damage apparently isn't much for the
       | BaFin to do a lot (AFAIK none of the footsoldies I've met faced
       | any criminal charges). But for the victims it often amounts to
       | 100% of savings or even debt they took on, not even to mention
       | ruined friendships, self-doubt, guilt etc. Ruga and the BaFin
       | broke already broken people.
       | 
       | PS: I think Tim Tayshun's article
       | (https://news.bitcoin.com/beware-definitive-onecoin-ponzi/) must
       | have saved a lot of people from this!
        
         | alisonkisk wrote:
         | There are similar scams in many countries. It's not a German
         | culture thing.
        
           | woodpanel wrote:
           | I'm not saiying it's a German thing. Just that on the
           | statistics mentioned in the article, my country seemed to be
           | one of the more gullible ones.
           | 
           | I might also add: Wirecard as well as IOTA did most wreckage
           | in Germany. Partly because their founders are German
           | speaking. Partly because authorities are inept.
        
       | unnouinceput wrote:
       | Quote: "...says there are similarities between OneCoin and
       | messianic millennium cults, where people believe they are part of
       | something big that is going to change the world - and no matter
       | what the evidence, once they've signed up, it's very hard for
       | them to admit they are wrong."
       | 
       | Yeah, I can say the same about Catholic, Orthodox, Muslim and any
       | other major religion in this world. Ever talked with any of these
       | bigots? You want to run for the hills.
        
       | daenz wrote:
       | Reading this made me realize that even though Bitcoin is
       | legitimate, Satoshi was pretty wise to conceal their identity
       | before it gained any traction.
        
         | skinnymuch wrote:
         | Satoshi could still be a small team from a high level Govt
         | agency. Or something else. Might not be one or a few civilians
         | at all.
        
       | botwriter wrote:
       | Didn't one of her associates turn up dead in Cambodia this week?
       | 
       | https://www.khmer440.com/chat_forum/viewtopic.php?f=14&t=720...
        
       | handmodel wrote:
       | This was such a good podcast as long as you are ok with a bit of
       | the journalists inserting their research process into things.
       | 
       | They went to Uganda where OneCoin was big. They had created a MLM
       | type system there where they got the local priests to give
       | sermons on why it was good. They interviewed people who sold
       | their livestock - even though they didn't own a computer or cell
       | phone so had no idea what it was - for a few hundred dollars to
       | invest.
       | 
       | It was also highly marketed in the Arab world where it was
       | marketed specifically towards people who can't invest in
       | companies that have interest on loans.
       | 
       | Truly a wild scheme.
        
       | Animats wrote:
       | If they'd actually implemented a blockchain, they would have been
       | in the clear. No worse than many altcoins.
        
         | andix wrote:
         | As soon as they would have turned the system on, people
         | would've been able to sell One Coin. And it would've got a real
         | price, determined by the market. Not some fake price, set by
         | the company.
        
           | cookguyruffles wrote:
           | Artificial pricing is still possible in the blockchain world,
           | it's just called staking over there
        
             | kolinko wrote:
             | What? Staking has nothing to do with a price
        
         | woah wrote:
         | If they'd actually implemented a blockchain that did what they
         | said it did, it wouldn't have been a scam. As it is, this has
         | about as much to do with cryptocurrency as most Nigerian
         | princes have to do with the African nobility
        
       | nicklecompte wrote:
       | Quite a contrast in reactions between the guy who made millions
       | of dollars from the OneCoin scam and bought a big fancy house:
       | 
       | > After Dr Ruja's non-appearance in Lisbon, a point came when
       | Igor Alberts, like Jen McAdam, asked to see evidence of the
       | blockchain. He didn't get it, and in December 2017 he quit.
       | 
       | > I ask if he felt guilty, for having sold so many people a coin
       | that didn't exist, and for having made so much money in the
       | process.
       | 
       | > "I felt responsibility. Not guilt," he replies. "You can never
       | be blamed for believing in something. I had no clue that it could
       | be false. I didn't even know what is a blockchain... What doubt
       | can I have?"
       | 
       | Versus the woman who lost a lot of money and convinced her
       | friends/family to also throw away their money:
       | 
       | > By contrast, Jen McAdam says she bears a heavy burden of guilt.
       | I ask her how much she earned from selling OneCoin and she says
       | it was EUR3,000 - EUR1,800 of which she received in cash, and
       | which she used to buy more OneCoin.
       | 
       | The line about "you can never be blamed for believing in
       | something" is of course self-evidently ridiculous and not
       | something Mr. Roberts would pretend to believe in any other
       | context. But "I'm not a bad person, I was a hapless victim like
       | everyone else" has a compelling logic when you're profiting from
       | a bad system.
        
         | danmaz74 wrote:
         | As the article says, Igor Alberts was already an established
         | multi level marketer making a lot of money with other products
         | when he started with OneCoin. Considering the nature of MLM,
         | I'm not at all surprised about him being rather impervious to
         | feelings of guilt.
        
           | jollybean wrote:
           | Cryptos are MLM's.
           | 
           | If you made a really solid crypto today, that was designed to
           | remain solid and relatively flat, it wouldn't be popular -
           | because the whole attraction is the 'easy money' euphoria.
           | 
           | No euphoria, no attention.
           | 
           | It's why a 'really good Bitcoin' - which tried to price at $1
           | USD today, and remain at that real valuation and avoid
           | devaluation, would be hard pressed to exist - it wouldn't
           | take hold. Or rather - that kind of financial instrument
           | would have to be sold to banks, not small change MLM people,
           | and banks are really conservative. It may happen at some
           | point.
        
             | gh55 wrote:
             | Tether, the 6th largest cryptocurrency has a market cap of
             | ~$160B, seems pretty "popular" to me.
             | 
             | USDC TUSD and BUSD are further popular examples.
             | 
             | Cryptocurrencies are not MLMs, you would do yourself a huge
             | favour by learning what they are.
             | 
             | In brief, Bitcoin is a scarce asset, and Ethereum is the
             | credit required to run trustless logical conditions
             | relating to a transaction, and also securing assets
             | involved in those conditions.
        
               | TazeTSchnitzel wrote:
               | The vast majority of the Tether market cap is fake money
               | (not actually backed by USD). It will collapse if enough
               | people try to cash out.
        
             | wnevets wrote:
             | Elon wouldn't be tweeting about it that's for damn sure.
        
         | dleslie wrote:
         | It certainly is a bizarre argument. With absolution of guilt
         | for wrongly held beliefs, one could engage in deplorable
         | actions without a tinge of later guilt.
         | 
         | We all have a responsibility to question our beliefs, and what
         | harm our actions cause.
        
           | FpUser wrote:
           | >"We all have a responsibility to question our beliefs, and
           | what harm our actions cause."
           | 
           | Can you point me to any source that spells it in legal terms
           | in relation to general public (not specific cases like food
           | inspector)? Like some written law.
           | 
           | Also if existed think of what would such law would to to
           | politicians unless they're specifically exempt.
        
             | dleslie wrote:
             | Laws are not always rules for ethical behaviour, let alone
             | the authoritative rules for ethical behaviour.
        
           | marnett wrote:
           | Yes we do have that responsibility and obligation. Reading
           | his fallacious defense had me immediately thinking of the
           | essay "The Ethics of Belief"[0].
           | 
           | [0] http://people.brandeis.edu/~teuber/Clifford_ethics.pdf
        
         | ivanhoe wrote:
         | Perhaps she's just a more socially skillful, so she offered a
         | better sounding excuse? That guy has a douche written all over
         | his face, but that doesn't mean others involved are any
         | better...
        
       | t8e56vd4ih wrote:
       | you should check the footage of her on YouTube promoting her coin
       | purely for entertainment. it's utterly ridiculous. she's a
       | personified red flag.
        
       | vmception wrote:
       | I had a European girlfriend at the time, (I'm an American and we
       | were both in America) her sister was exposed to onecoin and was
       | her sisters sole exposure to blockchain ideology.
       | 
       | So I asked her to forward the marketing materials to me, and oh
       | my god, it is not possible to discern the problems wrong with it
       | without formal education in both computer science like linked
       | lists and initial exposure to real blockchains.
       | 
       | Its doesn't matter that the first question to ask was "ok where
       | is the block explorer and what consensus model does it use"
       | because nobody exposed to onecoin _first_ would ask that
       | 
       | The other thing, which I find much funnier, is that they become
       | not fraudulent just by launching a token on an existing
       | blockchain or deploying their own, and that's all they had to do
       | but didn't.
        
         | pjc50 wrote:
         | > that they become not fraudulent just by launching a token on
         | an existing blockchain or deploying their own, and that's all
         | they had to do but didn't
         | 
         | I submit that that would not be enough to make it not
         | fraudulent.
         | 
         | > ok where is the block explorer and what consensus model does
         | it use" because nobody exposed to onecoin first would ask that
         | 
         | Doesn't matter. What matters is who's shilling and how
         | effective they are. Like Elon and Bitcoin.
        
           | vmception wrote:
           | > I submit that that would not be enough to make it not
           | fraudulent.
           | 
           | It would still be a rip-off for purchasers, but it would have
           | reduced their legal liability to nothing in the various
           | countries involved. Then they could just squirm around
           | securities laws based on how they marketed it, like everyone
           | else.
        
         | spuz wrote:
         | Did you convince your girlfriend's sister that it was a scam?
        
           | vmception wrote:
           | She didnt put money into it. But she was just as excited
           | about blockchain ideology as I was and I would just be the
           | second prophet she was exposed to. It is impossible to
           | discern the difference when religious-like ideology has
           | already occupied that register in your brain.
        
         | lph wrote:
         | > I am sure this cryptoqueen scammer put a ridiculous amount of
         | effort into her scam when these people who actually made absurd
         | amounts of money legally in altcoins did far less work.
         | 
         | Right?! All they had to do is fork an open-source
         | cryptocurrency, and they couldn't even do that. It's hilarious.
         | With the hype empire OneCoin controlled, it's quite possible
         | that it could have astro-turfed its way to a bubble like those
         | of bitcoin or dogecoin.
        
       | ivantopalov wrote:
       | I wish people would stop associating this fraud with the
       | cryptocurrency phenomenon. This had nothing to do with crypto. It
       | was an ordinary ponzi scheme, they just added "coin" to the end
       | of their product's name because at that time cryptocurrencies
       | were already very popular.
        
         | II2II wrote:
         | As an outsider, cryptocurrencies appear to be an ideal
         | environment for fraud: most of the talk is around investing in
         | it, its value is highly speculative, and it has relatively
         | little uptake for its stated purpose. Even when a give
         | cryptocurrency is legitimate, something that is difficult to
         | discern through all of the noise, the instability in its value
         | makes it a target for fraud.
        
       | TazeTSchnitzel wrote:
       | Sounds a lot like Bitconnect.
        
       | daenz wrote:
       | >It was a cryptocurrency company, and it had been running for a
       | while - but it didn't have a blockchain. "So we need you to build
       | a blockchain," he went on.
       | 
       | I have seen this first hand, on a much smaller scale, at a
       | startup that was riding the blockchain hype with investors. It is
       | really incredible and eye-opening to me what you can accomplish
       | with hype and trust, with absolutely nothing backing it. It makes
       | you realize that it doesn't matter if what you build is cool or
       | innovative, if you can't get people to trust you, it won't
       | succeed.
        
         | lottin wrote:
         | One thing I've noticed about the crypto crowd is many of them
         | seem to genuinely struggle to differentiate a scam from a
         | legitimate business. Some are obviously scammers, but others it
         | seems they don't really know what they're doing... they think
         | they're running a business.
        
           | kordlessagain wrote:
           | Most of them would struggle to understand how the shit works
           | as well.
        
         | 46756e wrote:
         | This is very true for crypto. The amount of people hyped on it
         | without understanding much about it seems crazy high to me.
         | 
         | Granted, I recently graduated college, so I may be bias from
         | experience. I just have seen a giant amount of finance frat
         | bros that pour money into Bitcoin cause "banks are like the
         | horse and buggy".
        
           | Nasrudith wrote:
           | They are an especially pathological manifestation of Buzzword
           | Zombies who shamble around brainlessly suggesting use of
           | their golden hammer in all contexts.
           | 
           | Actual finance graduated though? What the fuck were they
           | doing in class all of those years to even think of the two as
           | comparable?! For one let me know when I can get a mortgage or
           | auto loan from bitcoin itself.
        
           | hanniabu wrote:
           | The amount of people that discredit it without understanding
           | is also crazy high. Just because scams exist doesn't mean
           | there aren't real projects and use cases.
        
             | saagarjha wrote:
             | ...which are?
        
             | EvilEy3 wrote:
             | Name one.
             | 
             | Crypto is one huge scam and pyramid. Period.
        
               | heavyset_go wrote:
               | So far, the only valid use case I've seen is buying or
               | selling things on the grey/black market.
        
               | ccortes wrote:
               | USDC
        
         | tootie wrote:
         | Theranos springs to mind. When you can dazzle enough rich
         | people with FOMO over technologies they don't understand, it
         | can be pretty easy.
        
         | pessimizer wrote:
         | The only difference between selling bullshit and selling
         | quality is that quality will get you more positive word-of-
         | mouth advertising per sale. If you're selling bullshit, you
         | need to either actively suppress the word-of-mouth, drown it
         | out with marketing spend, or offer a cut of future profits (or
         | something that looks like a cut of future profits) to buyers.
        
           | varsketiz wrote:
           | What about recurring customers? Clearly this is not the only
           | difference.
        
         | amelius wrote:
         | I think this is because "cool startup" works as a signal for
         | speculation. It doesn't matter that there is no value backing
         | it, investors have this unwritten agreement that cool sounding
         | projects get investments and with money behind the project, it
         | automatically becomes more valuable.
        
         | tudorw wrote:
         | Let's not knock it, vast swathes of internet were built with
         | hype money, if something is really novel, it takes a leap of
         | faith to invest.
        
           | alisonkisk wrote:
           | Not really. Government grants, paying telecom customers, ad
           | buyers, porn buyers.
        
           | [deleted]
        
         | imiric wrote:
         | Con artistry is an old profession, this is just the modern take
         | on it.
         | 
         | It's the Theranos approach. With a charismatic and strong
         | character as founder you can build hype and get investments
         | without even having a product. Being on friendly terms with
         | investors also helps to establish trust.
        
           | alisonkisk wrote:
           | Theranos desperately tried to build a product. They failed
           | and lied about it. The plan wasn't to profit from the fake
           | stuff and exit.
        
           | Nasrudith wrote:
           | Here is something which struck me as obvious yet would get
           | furiously disputed: if you care about the charisma of a
           | company head, or any other superficial aspect like City of
           | London fashion etiquette you are being an idiot and are
           | asking to get scammed by privileging what you expect to see
           | above talent. It is what they do that is the important part.
        
       | saagarjha wrote:
       | Some discussion from earlier:
       | https://news.ycombinator.com/item?id=21618346
        
       | klaudius wrote:
       | I was at one of their scam seminars. There was some sociopath
       | lying for an hour straight and trying to get people to purchase
       | some package for mining Onecoin. It was ridiculous. I was invited
       | by a (former) friend who tried to recruit me and make some money
       | exploiting me.
        
       | henvic wrote:
       | Once the Bitcoin & cryptocurrency proof-of-work fraud dies off,
       | we're going to hear a lot of stories like this.
       | 
       | https://henvic.dev/posts/bitcoin/
        
         | RivieraKid wrote:
         | You're the author of this article? I really enjoyed it. One
         | thing I'm not sure I agree is that fiat is an unsustainable
         | shitcoin. Economics and monetary policy is a complex topic,
         | some very smart and knowledgable people have a different view.
        
       | neom wrote:
       | Relatively good mini doc about this:
       | https://www.youtube.com/watch?v=64xcgvEJ3Ys
       | 
       | tbh I've spent waaay more time than I'd care to admit diving deep
       | into onecoin over the past few years. It's really really really
       | wild the more you dig. Happy to answer any questions.
        
         | hatmatrix wrote:
         | What's wilder than already covered in these docs and podcasts
        
           | neom wrote:
           | I'm not sure what you've consumed so that's somewhat
           | difficult to answer, but the part I found the most
           | interesting is all the "dealshaker" stuff that happened
           | after, and I think might still be going on.
        
       | paulpauper wrote:
       | I think there is more that is not being disclosed. It seems hard
       | to believe someone could be so public and just vanish like that
       | after having stolen so much.
        
       | zmix wrote:
       | LOL, I never heard about OneCoin!
        
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