Senior members of OneCoin, the alleged $4bn Ponzi scheme based on a non-existent cryptocurrency, recently obtained permission to operate virtual currency exchanges and provide digital wallets in Estonia — and the licensing regulator says it is powerless to act because of the country’s “fundamentally flawed” laws.
Veselina Valkova, from OneCoin’s Bulgarian headquarters, and Habib Zahid, a OneCoin “master distributor”, secured licences from Estonia’s financial intelligence unit (FIU) on November 20, public records show.
OneCoin has been hit with a slew of charges by US prosecutors who allege it is a “hybrid pyramid Ponzi scheme”, and the brother of its creator has pleaded guilty to charges of fraud and money laundering.
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