- Bank of New York Mellon (BNY Mellon) is being linked to OneCoin for the transfer of more than a $100million
- Thousands of suspicious activity reports (SARs) from the time 2011 to 2017 were leaked to Buzzfeed
- Officials from BNY Mellon have stated that they have always raised concerns to FinCEN for any transaction that seemed suspicious or layered
The infamous OneCoin has made a habit of making it into the news for frauds and crimes. One such incident associated with America’s oldest bank surfaced recently on Buzzfeed. According to that Bank of New York Mellon (BNY Mellon) is being linked to OneCoin for the transfer of more than a $100million. OneCoin has made news several times in past times and is considered as one of the largest successful Ponzi schemes of the US.
What is the Complete Story?
Thousands of suspicious activity reports (SARs) from the time 2011 to 2017 were leaked to Buzzfeed. The reports mentioned transactions that were flagged by the bank’s compliance team for the Financial Crimes Enforcement Network (FinCEN) to review. What summed to be 2657 documents in total described how deep the dirty money network is and knowingly/unknowingly some of the world’s major banks played a role in it.
Entities like OneCoin are linked to $137 million of transferred funds that seems to be suspicious. One such transaction out of many that gained the largest attention is where British Virgin Island-based Fenero-Equity Investment wired from DMS Bank & Trust a sum of $30 million in the account of BNY Mellon. The fund is being described as a loan for OneCoin’s Co-Founder Ruja Ignatova. As per the claims she took the loan for setting up CryptoReal, an investment trust. It is to be noted that Ignatova is not seen in public since 2017.
This was one of the many times when BNY Mellon received wire transfers by Barta Holdings through Hong Kong’s DBS Bank. US authorities seized email last year which showed Mark Scott laundered $400 million for OneCoin and $30 million as a loan for the purchase of oilfield in was sanctioned. Though seized emails and testimony of special agent Kurt Hafer also proves that the loan was never repaid and $10 million from were used by Ignatova for personal affairs
BYN Mellon’s Stance on the incident
Officials from BNY Mellon have stated that they have always raised concerns to FinCEN for any transaction that seemed suspicious or layered. Bank also stated to the International Consortium of Investigative Journalists (ICIJ) that they have always complied to the banking rules and regulations of the financial system. And as per the law, they are not authorised to comment anything on the SARs. Other banks who have flagged similar patterns of transactions include JPMorgan who flagged $500 billion worth transactions, Bank of America ($384 billion), Deutsche Bank ( $1.3 trillion) and BNY Mellon $64 billion in 325 separate SARs filed with FinCEN.
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