One Coin is a scam and over 119 people have been arrested in China for the scam. Zhuzhou police were tipped off about OneCoin as early as March 2016, and in December the same year, state broadcaster China Central Television warned the public that OneCoin was one of more than 60 virtual currencies that exploited the concepts of blockchain technology and digital assets to lure people into a pyramid scheme.
Unsuspecting investors, however, continued to fall for the digital currency. In February 2017, OneCoin attracted widespread attention after news broke that Chen Man, a former convict who had been released after being wrongfully imprisoned for 23 years, had spent 1 million of the 2.75 million yuan he had received in state compensation on OneCoin. Video footage showed a OneCoin saleswoman telling him that the cryptocurrency had been licensed in 214 countries — more than the number of countries China acknowledges.
The currency has even ended marriages: One woman in Inner Mongolia filed for divorce in 2016, explaining that since 2014, her husband had raked up loans to support his OneCoin habit.