Hungary Regulators and Police Investigate OneCoin

The Hungarian Central Bank has announced a joint investigation with various police departments and tax authorities against OneCoin, the controversial cryptocurrency that has drawn legal attention and social media scorn as an alleged pyramid scheme.

On May 5, the Magyar Nemzeti Bank (MNB), Hungary’s central bank, initiated a meeting with representatives from the Interior Ministry, Budapest Police Headquarters, the Municipal Prosecutor’s Office, the Prosecutor General’s Office the National Tax and Customs Administration, the National Bureau of Investigation, and the National Police to discuss OneCoin.

The central bank said that the meeting is part of a wide-ranging task force aimed at cracking down on certain elements of OneCoin. The central bank noted that OneCoin resembles a pyramid scheme which promises high returns. It also encourages participants to invite other investors.

Hungary is the third country to recently clamp down on the alleged pyramid scheme, with both India and Germany taking action against the scam.

Last month, Germany’s Federal Financial Supervisory Authority (BaFin) has issued cease and desist orders against three companies connected to OneCoin. The order is aimed at ending any activity related to OneCoin in the country.