German Court Releases 3M Euro in Stolen Funds

OneCoin convinced a German court to release 3M EUR in funds accumulated by prosecutors from ponzi schmes. The funds were frozen by BaFin, Germany’s financial regulator, as a larger seizure back in April 2017. BaFin argued that the funds were laundered by OneCoin through the country from 2015 to 2016.

OneCoin countered, arguing that out of the total 29M EUR seized, 3M EUR was generated by shell company transaction fees and thus, should not be subject to seizure.

The argument went on appeal and on October 11, Hamm Higher Regional Court ordered the 3M in funds to be released to OneCoin. Public prosecutors have tried to unsuccessfully stop the release by issuing a new arrest order.

Worse yet, the Court ordered the German Treasury to pay attorney’s fees to OneCoin. Oddly enough, some are questioning the court’s decision, especially because it seems odd that funds obtained by ponzi scheme are not subject to seizure by the government.

For now, there is one negative outcome for OneCoin, and that is it remains banned in Germany and it is subject to further investigation.