SINGAPORE: A man was fined S$100,000 on Wednesday (Jul 1) for promoting a multi-level marketing scheme involving a purported cryptocurrency.
Fok Fook Seng was convicted on one count for “actively promoting” the scheme between January 2016 and June 2017, police said in a news release on Thursday.
Participants took part by purchasing packages containing online education courses bundled with promotional tokens, which they were told could be used to “mine” the purported cryptocurrency OneCoin.
Participants of the scheme could also receive commissions by directly referring people who purchased the packages, and if their referred participants brought in other people in turn.
Fok had organised multiple seminars to promote the scheme, which he advertised on a public Facebook page, OneLife One World Team Singapore, police said.
“In addition, he took part in other large-scale events to promote the scheme in Singapore,” they added. “As at June 2017, there were 1,180 members in Singapore and other countries under his main account due to his own referral efforts and that of his team members.”
Another man who was promoting the scheme has also been charged with the same offence. He faces an additional charge for incorporating a company to promote the multi-level marketing scheme.
Court proceedings for that case are ongoing.
Police advised the public not to deal with unregulated entities or people for investment opportunities.
“If you choose to deal with unregulated entities or persons, you will forgo the protection available under MAS’ regulations,” they said.
The police also reminded the public that cryptocurrencies are not legal tender and are not regulated by the Monetary Authority of Singapore. There are also no regulatory safeguards for investment in them, police added.