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Monday, 26 February 2018

DagCoin scam – following the footsteps of OneCoin

DagCoin is a cryptocurrency scam very similar to OneCoin, founded by a former OneCoin promoter Nils Grossberg. I couldn't find any exact date when the scheme was launched but it seems to have taken its first steps in August 2017.

Nils Grossberg, the founder, the CEO

Both OneCoin and DagCoin are marketed via MLM based pyramid scheme and they both have ponzi coins offered as a giveaway attached to purchase of an education package. The education packages sold by DagCoin have prices varying from 100 € up to 25.000 €. The content of each education package is very briefly described on DagCoin's webshop. However, those brief texts don't really justify the price tags included and there are no specific information about the education available. It's of course obvious that no one is buying this for the sake of education but for the coins attached. – Just like victims of OneCoin did.

Chain, chain, chain – Chain of fools

The biggest difference between DagCoin and OneCoin is the technology used – or to be more exact, the lack of it. 

OneCoin has claimed to use blockchain technology similar to Bitcoin's. However it's evident that all the talk about OneCoin's blockchain has been total nonsense and it seems that the company was never even meant to launch an actual cryptocurrency. 

DagCoin on the other hand has an actual technology in the background. It appears that the original idea of DagCoin was presented already in 2015 by someone named Sergio Demian Lerner. Here you can read Lerner's first post about DAG (Direct Acyclic Graph). Little did Lerner know that his idea would be later exploited to launch a scam.

One other difference between DagCoin and OneCoin is the way of marketing. Whereas OneCoin has used social media and internet to spread like a virus around the globe, DagCoin uses a much more subtle way. I really think that it's just a necessity to avoid any unwanted attention since most of the main characters marketing DagCoin are former OneCoin scammers.

The lack of cult of personality

There is one more thing separating DagCoin from OneCoin. That is the lack of cult of personality. 

OneCoin has Ruja Ignatova, "Dr Ruja", who has been presented as the founder behind OneCoin cryptocurrency – like Satoshi Nakamoto of ponzi coin. Among the cult members she is hold in high regard for no apparent reason. She obviously has something that appeals to scam victims. 

DagCoin has Nils Grossberg who really doesn't strike me as a cult leader. I managed to find only couple of short videos of Grossberg giving short speeches in English. Based on those appearances he doesn't appear to be fluent with English, which really doesn't make him more convincing. Other than being the founder of the scheme, I don't see him having much else to offer besides his name and face. 

Nils Grossberg and Kari Wahlroos preparing for DagCoin event in Dubai in February 2018.

The event in Dubai, February 2018

There hasn't been any publicly shared videos of the event so far, so we don't get to see Kari Wahlroos rampaging on stage and threatening to punch those who disagree with him.

However, a Canadian former OneCoin promoter (still allegedly a believer though), Ken Labine, has released some information about the latest news from the Dubai event in a YouTube video published 24 February.

According to Labine:
  • Many merchants signed up to accept DagCoin.
  • PayGety, an active public exchange for DagCoin opening up on March 5th. In addition an exchange named SwipeX coming up.
The most hilarious news is that DagCoin is going to change to a new chain. Due the change of chain the initial supply of DagCoins of 1 billion is going to be increased to 10 billion. Not minding at all about the awkward familiarity of all this Labine is excited to explain:
  • "Our company is moving away from the byteball Dag plateform, and for the last 6 months we have been creating our own technology that will be announced in Panama May 2018."
  • "The total supply goes from 1 billion to 10 billion." 
And as a cherry on top:
  • "All of us will get 10 times the amount of coins we have up to this point."

Now, how come this all sounds so familiar? Oh, yes, OneCoin launched their new "blockchain" too and doubled the coins every one had in October 2016.


It might very well be that the former OneCoin scammers are the ones behind the recent new ideas brought into DagCoin. I suppose they are preying on the people who haven't heard about OneCoin and are gullible enough not to search information about the history of the people marketing DagCoin.

Like OneCoin
DagCoin is a ponzi-pyramid scam. It is combining pyramid scam with ponzi coins that nobody will want to buy from the suckers who'll desperately try to sell them.

Oh, by the way, Kari! – DagCoin is a scam.

Wednesday, 24 January 2018

Global InterGold – Yet again bank account changes

Global InterGold has just recently removed bank account details of one of the two banks they had been able to hold on to in Bulgaria for quite some time. Those two bank accounts had been in use for surprisingly long considering that meanwhile Global InterGold had been changing banks accounts in Philippines like socks, until apparently gave up even trying due continuous banking problems there.

The bank account details removed were the ones of United Bulgarian Bank. The bank account of International Asset Bank is still available but there's also a new addition, a bank account in Piraeus Bank Bulgaria AD. – Let's see how long they can hold on to that.

The account holder of both bank accounts is MD7 Trade Ltd. According to the company's financial statement from 31 December 2016 the initial capital of MD7 Trade Ltd. was only about 255 euros. The owner of the company is Mihails Subotins, an Ukrainian businessman who is pretty much unknown anywhere else but in Greece. There he got his name into headlines after filing 97.2 million euros lawsuit against owner of Aris BC (Basketball Club) Nikos Laskaris accusing him of embezzlement. You can read more about it from here.

Here's updated list of Global InterGold's present bank accounts and their holders:

International Asset Bank
Bank recipient:
International Asset Bank
Bank address:
1303 Sofia, 81-83 Todor Alexandrov Blvd., Bulgaria
Beneficiary's address:
Sofia 1407, Lozenets area, No. 103 James Bourchier blvd., 1st floor
Beneficiary's account:

Piraeus Bank Bulgaria AD
Bank recipient:
Piraeus Bank Bulgaria AD
Bank address:
115 E Tsarigradsko Shosse Blvd., 1784 Sofia, Bulgaria
Beneficiary's address:
Sofia 1407, Lozenets area, No. 103 James Bourchier blvd., 1st floor
Beneficiary's account:
BG77 PIRB 9170 1604 6899 88

The bank account of Piraeus bank is used only for money transfers that do not exceed 7000 euros. What comes to the account in International Asset Bank there isn't any limitations for the amount of euros to transfer yet.

Monday, 22 January 2018

OneCoin/OneLife – Official response to recent happenings

OneLife/OneCoin published today a press release about the recent happenings and accusations.

The announcement – signed by no one – of course denies all accusations and goes on to claim that the ongoing investigation and news reports are results of a well organised, purposeful campaign, aiming to damage corporate reputation and destroy its business.

Despite labeled as a criminal organisation by investigating authorities, OneCoin claims having nothing to do with organised crime.

"The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business."
"Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria."

Ruja Ignatova is accused in Germany for being a member of an organised crime group involved in financial fraud. I'm sure the raid to OneCoin's offices in Bulgaria conducted by Europol and German investigative bodies was quite an exceptional measure. However, I don't think raiding offices of a foreign company in another country is done based on any guesses and rumours. It's not a result of a smear campaign but a result of money laundering of 360 million euros in Germany. The raid was done after 2-3 years of investigation by German Police and international co-operation of authorities and banks.

OneCoin preparing for closure of its scam-business due bankruptcy

The most interesting part of the statement by OneCoin is that the company is evidently ready to exploit the situation and already preparing its victims for upcoming total closure of its business due bankruptcy.

"Currently, because of the ongoing investigation, the OneCoin company and its partners are facing immeasurable financial loses. From the offices of our partners was, among other things, confiscated technical equipment that is necessary for their daily operations and its loss will not only lead to financial harm but could very well lead to bankruptcy. This fact is also puzzling and makes us believe that this is not a random coincidence."

That's of course a perfect excuse for the company, and easy to swallow for some cult members. Now the victims can blame governments, police, banks and so called haters instead of the scammers and the ponzi-pyramid company. However, I don't think that they all will be that gullible. I'm pretty sure that there will be lot of victims reporting their local police about getting scammed into this. 

It's not happy Mondays for onecoiners anymore.

Here's the whole statement by OneCoin:

Jan 22, 2018 | Press Releases 

Dear Members, 

We are publishing the official statement of the OneCoin company regarding the recent media publications without any editorial changes: 

OneCoin official statement regarding publications about exposed criminal group related to OneCoin cryptocurrency 

January 22, 2018 

The OneCoin company would like to officially state that the multiple recent media announcements about an exposed criminal group, engaged in money laundering using the OneCoin cryptocurrency, are untrue and are misleading the public. 

The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business. 

Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria. The company and its partners have always openly declared their willingness to cooperate with regulators, governmental organizations and media, and provide any information that would be useful in clarifying any confusion or suspicion, related to their business activities. Therefore, we have been extremely surprised that we were never approached and asked for clarification, including by any media outlet worldwide, as expected by media striving for journalistic professionalism, fairness and objectivity. A point that we could all agree on is that media is essential to and should be the pillar of a healthy democracy. 

The fact that during the past couple of days we are witnessing completely the opposite, is quite disturbing. We are led to believe that this is a deliberate attack against the OneCoin company, its partners and the OneCoin cryptocurrency, as well as its Founder, Dr Ruja Ignatova. What we currently observe is a calculated media storm, aiming to harm the reputation of the company and its Founder, aiming to hide important characteristics of the OneCoin cryptocurrency, so that it is presented in a completely different way than it objectively should be. 

To clear out all doubts about OneCoin lacking transparency, we would like to point out that this is a centralized cryptocurrency, thus providing higher liquidity and less volatility with a long-term vision and strategy for a stable development, unlike other cryptocurrencies that open and allow possible speculation from traders. It is a well-known fact that cryptocurrencies are usually distrusted, mainly because of their anonymity of transactions and lack of user identification. This makes it possible for criminals to use cryptocurrencies for illegal activities. As far as we know, such activities are not possible with OneCoin – a cryptocurrency that has strived to implement compliance procedures aiming to identify each user (KYC - Know your customer), each business (KYB - Know your business), to prevent money laundering (AML - Anti Money Laundering), etc. All these procedures aim to prevent the usage of OneCoin for dubious activities. In addition, it is also important to note that the centralized model provides the highest level of prevention from possible loss due to malfunction of the user’s hardware, eventual thefts or, for example, due to the ability of ongoing data backups. These facts were never presented by the media and the OneCoin cryptocurrency was not presented objectively as well. 

Currently, because of the ongoing investigation, the OneCoin company and its partners are facing immeasurable financial loses. From the offices of our partners was, among other things, confiscated technical equipment that is necessary for their daily operations and its loss will not only lead to financial harm but could very well lead to bankruptcy. This fact is also puzzling and makes us believe that this is not a random coincidence. 

It is important to clarify that based on the feedback we received from our lawyers, there is still an ongoing investigation, which in all democratic countries means one thing – there is no conclusion made by judicial authority, based on evidence and objectively indicating a ground to make accusations either against a company or against a natural person. During the search of our and our partnering companies’ offices on Wednesday, January 17, 2018, the employees enquired after the charges, the reason for the search and the interviews by officials. So far such information was not provided. 

In conclusion we would like to state that the media coverage of the ongoing investigation, done under doubtful circumstances, lacking a final conclusion of the competent authorities is misinforming the public regarding the facts and evidence collected, further questioning the objectivity of the circulated information in the Bulgarian press, which could be defined as a black PR with dubious goals. 

In order to protect the rights of our employees, clients and partners, the OneCoin company and its partners will inform media representatives and the public of the developments, related to this case.

Friday, 19 January 2018

OneCoin's HQ raided by authorities – a lot of evidence seized

The Prosecutor's Office of the Rebublic of Bulgaria released news today headlined:
"The Specialized Prosecutor's Office participates in neutralizing an international money laundering group through the virtual currency".

OneCoin's headquarters in Sofia

According to the Prosecutor's Office the raid was part of their involvement in an international operation to neutralize a large-scale pyramid structure for commercial fraud, progressive customer recruitment and money laundering by creating and distributing the virtual currency OneCoin.

In addition to the headquarters of OneCoin also offices of 14 other companies involved in the scam have been raided. The raids happened on 17 and 18 January 2017 in the presence of representatives of Europol and the German investigative bodies. The raids led to a lot of material evidence having been seized, including servers and also 50 witnesses have been questioned.

No wonder that OneCoin's fake blockchain (viewable in user accounts) has been stalled for two days now:

 I guess Ruja's laptop that was running the database was seized as well. Good bye coins!

No one has been arrested for now. Presumably during the raids there was no one around responsible for the crimes committed. The people interrogated were most likely staff that OneCoin had hired to run its business, websites and organize events. Ruja Ignatova hasn't been seen for a long time. That been said, the raiders were longing to interrogate "two Bulgarian women with German citizenship". Those women are presumably Ruja Ignatova and her mother Veska Ignatova.

A video by Bulgarian authorities capturing OneCoin's HQ after police had emptied it.

OneCoin is an international criminal organization

The authorities are labeling OneCoin as an international criminal organization, so anyone defending the scheme claiming that the company hasn't done anything illegal can shut their pieholes.

Quoting the Prosecutor's Office:
"Investigators identify the location of the servers in Sofia and the service companies used by the international criminal organization."
"According to the prosecutor's office, besides Dubai's OneCoin Ltd. the network operates through hundreds of affiliated companies on 4 continents."

Finally some international co-operation in Europe against scams! Hopefully this is a start of more efficient co-operating agains ponzi-pyramid schemes in Europe. So far scams have been operating quite freely, and crossing borders has provided almost a secure way to spread scams from nation to nation.

The news about the raid have been covered also in the following media:
Bulgarian Capital
Sofia Globe

Original news release by the Prosecutor's Office of the Rebublic of Bulgaria.

Ignatova accused being a member of an organized crime group in Germany

According to the Chief of Prosecutor's office of Bulgaria, Ivan Geshev, Ruja Ignatova is accused in Germany for being a member of an organized crime group involved in financial fraud.


Thursday, 18 January 2018

OneCoin's ICO ain't happening

It seems that the website published for the launch of OneCoin's ICO has been abandoned soon after getting it online.

This screenshot was taken January 18 2018. Click to enlarge.

According to the roadmap on the website the start of first round of coin offering was supposed to already happen in October 25 2017. The start of second round of coin offering was meant to happen yesterday but even the animated chart has not reached the date yet, and of course nothing has happened. There's no way to participate this "public coin offering" despite the FAQ of the website instructs as follows:

– Nope, not possible.

Initially the coin offering was supposed to be carried out by Golden Gate Investments Ltd allegedly registered in Dubai. Not long after publishing the website SILO Capital Group Ltd was introduced to carry out the project instead of GGI Ltd, whose involvement would then be only "limited, supervising the communication activities of the Coin Offering."

Neither of those companies can be found on Dubai's public company registry.

As a conclusion I repeat that the website seems to be abandoned soon after publishing it. Not even the terms of conditions have been updated to suit the change of company responsible for the coin offering.

Igor Alberts giving his statement about resigning OneCoin

Igor Alberts was allegedly the top earner of OneCoin/OneLife before leaving the company at the turn of the year. Alberts joined immediately to another scheme called DagCoin and started promoting it spicing things up with comparing OneCoin/OneLife to Titanic.

Igor Alberts: 
"The higher we get, actually, the closer you get to the top, and the responsibility comes to you – it's growing."
– I don't know what responsibility has to do with pocketing shitloads of money from his downline and leaving the company at the verge of final collapse.

"I'm not a tech guy, I'm a believer. But at a certain moment whatever belief you have, you must not be ignorant. And we get heavy questions, and we had no clue what to answer.
But you know, we believed... Aaand that changed unfortunately since the event in Lisbon where the captain of our ship didn't appear. It was meant to be... we had high belief to Dr. Ruja Ignatova, and I don't know, the real truth, I really have no clue what has happened to her."

Then Alberts goes on explaining how he tried to get answers from the company but couldn't get any, nor was he able to find someone responsible now that Ruja Ignatova was gone.

He also wonders what happened to Edward Ludbrook, who was the Chief Leadership Officer of OneCoin. "We don't even know if he resigned or he get fired."

Alberts brings up also the exit of OneCoin's short-term CEO, Pierre Arens. According to Pierre Arens himself, he decided to left the company because of "a lack of leeway as a leader". Apparently Alberts was told that Arens had a heart attack and left the company because health issues. 

As a side note, it's funny that nobody seems to remember Pablo Munoz anymore. He just disappeared from the position of OneLife's CEO without a trace soon after being introduced to the ponzi victims.

Igor Alberts confirms that OneCoin leaders bought a blockchain in 2016 

"Some of our other uplines told us: Yeah, you know what we did, don't worry, we built a blockchain already a year ago."
– This also goes along with the known case of failed attempt to hire a blockchain specialist from Norway, Bjorn Bjercke. Finally DXmarkets was a company the ponzi managed to have a relationship with and a white paper was delivered in May 2017. However, I don't think that went quite as it was planned, because the whole thing was just an awkward mess.

Alberts continues:  
"Now we were shocked! When we hear from our upline leaders that they built the blockchain. Why should they build, because we have a blockchain? They said: but for the case that ... (there wasn't any)"
– And so it appears that there hasn't been much management in the scam for a long time but mismanagement to spread rumours and confusion in the network. Even the top scammers haven't received information about what was going on.


The rest of the video is mostly about Igor promoting DagCoin scam, which is pretty much like OneCoin but in different wrappers. Again we have education packages full of ponzi and a pyramid scheme to go along with it. Oh, and there are a lot of familiar faces from OneCoin too!

Igor Alberts let's us know that it was his friend Kari Wahlroos who persuaded him to join DagCoin. However, this time he is doing his due diligence: 
"I pulled up every possible technical question that I could come up with. And you know what, I get all the answers."

– Well, this all comes from a man who just a while ago said he's not a tech guy, and who still doesn't know how to say "directed acyclic graph". 

I must say that I'm amazed how these so called leaders are so incapable of spotting obvious scams while they are heavily involved in one and busy pocketing money. – Now, the question is, would you take business advices from them?

Source: Statement of Igor Alberts on Facebook.

Thursday, 11 January 2018

Polish authorities tighten their grip on scammers

A recent article published 20th December 2017 on Gazeta Prawna let's us know that Polish authorities want to tighten their grip on scammers. As the article puts it: 
"The UOKiK's message is unambiguous: the permission to cheat hundreds of thousands of Poles has ended. Officials warn and want to convict cheaters."
– UOKiK is the Office of Competition and Consumer Protection in Poland.

The decision of UOKiK might have based at least partly, if not largely, on case Recyclix. Recyclix was based in Poland and apparently had also many Polish victims.

What comes to pyramid scams in general, Polish officials apparently have had quite loose attitude towards pyramid scams before.

Gazeta Prawna:  
"Almost all experts say clearly: the reaction of the state authorities is late. But better now than not at all. For although the last two years have been the resurgence of pyramidal structures resembling Amber Gold, the state organs are still operating slowly."

In fact international scams are quite free to operate throughout the Europe, so this is not a problem that only Poland is struggling with. The internet makes it very easy for pyramid scams to spread and operate without respecting any laws. 

For instance, the Finnish NBI was supposed to evaluate the legitimacy of OneCoin by the end of 2016 when the coin was meant to go public. That of course never happened, because the coin never went public. So OneCoin got off the hook just because the NBI didn't attach the hook with a knot to the line. (Later there was a separate criminal investigation launched by the Finnish Police, but it might still take some time to get some information about the case in public.)

UOKiK warns about ongoing scams

The article by Gazeta Prawna mentions two ongoing scams that UOKiK wants to warn consumers about, DasCoin and Lyoness. DasCoin is referred as a cryptocurrency that does not exist. Lyoness on the other hand is described having pyramid scam features. 

OneCoin was not mentioned in the article, but then again UOKiK had already published a warning about OneLife (OneCoin) in September 2017. OneCoin has been crumbling since the late 2016, so the scam growth in Poland probably has been in a stagnant state for quite some time.

The case Recyclix

After UOKiK had investigated Recyclix and found it to be a scam, the president of UOKiK obliged Recyclix to give investors all the money back they had invested.

However, a Polish attorney Dominik Jędrzejko interviewed in the article says:
"It is good that the decision has been issued, but it is rather symbolic. There is no doubt that the company will not refund money to consumers, if it got into financial trouble much earlier."
From what I have studied the aftermath of Recyclix, it seems likely the attorney is sadly right. On the contrary, it seemed that scammers were even trying to milk more money from their victims. This is copied from a Facebook group titled "Recyclix Support":

But since the company is not running, there is no payment source for us for our hard work and for this reason, we charge users with fees before we validate their refund request 
# We can't deduce those fees because all your investments and profit are by the owners of the financial accoutns and for them, deducing any amount from the total refund is considered as an illegal activity 
# We have no guarantee that users who will receive their refund are going to pay us the required fees later. This is why we charge them with fees before we validate their refund request 
# Our activities are legal and everything is explained in the T&Cs that was signed by the juridical courte of Poland 

– By the sound of that I bet it was a Nigerian Prince sorting things out there.