The Italian Competition Authority (IAA) has announced the conclusion of its investigation regarding One Life Network having provided misleading information in order to lure clients into buying OneCoin cryptocurrency.
The brokerage is being accused of using pyramid sales tactics, with its employees falsely assuring clients that they would be able to buy the cryptocurrency by way of a process called mining after purchasing the training package. Furthermore, the crypto currency’s value was alleged to grow following its dissemination.
According to the sales pitch, buying a package worth US$27,530 would have made the client US$3.4 million within two years. The training package was used to hide the program’s entry fee, as well as to convince more clients of the allure of OneCoin.
The IAA said in a statement:
“OneCoin’s dissemination took place through a pyramid sales system as recruitment of new consumers was the sole purpose of sales activity and was strongly encouraged by the recognition of various bonuses, the only real and effective remuneration of the program. The purchase of the training kit in fact concealed the entry fee required to enter the system and convince other consumers of the goodness of the product.”
Full Content: CoInDesk
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