I know about this China arrests case from when it happened in March 2016.
This forum made me links to legit and strict Onelife IMAs all around the globe so now I also have a link to Chinese chat and voice groups and I can finally write some solid info about China.
I can confirm that Onelife IMAs in China work regularly, they are actually more focused on promoting dealshaker cause it is the pillar of Onecoin success on public trading, current users number is not so important cause those are only people who will want to sell the coins, they realized.
Real users will come after Onecoin hits public trading.
So those legit Onelife people are aware that there is some independent group involved in several scams, and they used "one coin" name and fake website with their own misleading and high return promising promotional material to scam people (similar to Italy except in Italy it was done by the actual IMAs). Those Chinese scammers did not even sell real oneacademy gift codes. The amount of money collected by those fraudsters was $45.7 Million, it is a bit too small amount for 1+ million users in China? Correct. OneCoin company might even sue those persons I heard from Chinese IMAs.
Real Onelife IMAs actually collected Billions or at least hundreds of Millions and all those were for paying Education packages, not tokens nor Onecoins so recent temporary ban for ICOs in China has nothing to do with Onecoin since they did not make "typical" crypto fund raising ICO.
Here is a list of ICOs that need to return funds to investors: finance.caixin.com and I was confirmed that OneCoin is NOT on that list so this BS article from behindMLM was just yet another abuse of OneCoin name to make a click bait.
Turned out it was forward thinking from dr Ruja to sell Education, and not Coins or Tokens and even smarter recent decision to implement an option upon activating education code to select whether Education buyer wants to receive tokens or not.
So, now, let's cover the actual material about arresting those scammers.
We could see some info in this May 26 2016, article $45.7 million recovered from Chinese OneCoin scammers from one and only behindMLM. I will never quote his text cause even birds know how tricky and twisting they are. What I do like and respect for him is that he is always sourcing his texts and I like to analyze source links. So, concerning this particular article, back in May, I read the source article that links here but that article seems to be removed.
I remember both google translating it and confirming it from a friend who knows Chinese and that article explained how those arrested people collected money from some pension fundraising pyramid investment scheme and that money was recovered. But those scammers were only mentioned to be also promoting certain "one coin".
So those $45.7Million recovered was not from one coin, it was from all their scam schemes. We will see below how many they collected on their one coin scam scheme.
I was able to find this July 23. 2016 article in www.zsbtv.com.cn that seems to write about "one coin":
No need to comment deeply, scammers using OneCoin name were detected, reported, investigated and arrested cause they were scamming people. Those are not legit Onelife IMAs, I was confirmed that from official Onelife source from China.Zhongshan City Public Security Bureau of the Eastern Branch of the "hurricane 2016" special action, increase the drug-related, involving steal robbery, involving telecommunications network fraud, financial fraud in the field of efforts.
Recently, the Zhongshan District, the police successfully cracked with the "one coins" MLM case, destroyed a suspected organization and leadership network pyramid schemes, fraud gangs, according to criminal detention Liao Mou, Cao and other three major suspects, the entire network involving multiple provinces City, involving the amount of more than 600 million yuan ($92 Million).
In March this year, the Zhongshan District police in the work was informed that there are lawless elements through false propaganda can get high returns way to attract the masses to invest in the network virtual currency "one coin", suspected network pyramid schemes, fraud.
March 16, the Eastern District police after a day investigation, in the eastern part of Zhongshan City, a district captured Liao (female, 40 years old, Zhongshan), Lin (female, 39 years old, Zhongshan), Cao (male, 45 years old, Hong Kong people) three suspects, seized the crime tools computer, mobile phone, bank card and a number of.
So recent news from news.sina.com.cn where 35 scammers were sentenced to jail and money fine is no surprise. They also say that 13.6 Million Juan was collected by them (around $2.1 Million).
Please, those are not legit Onelife IMAs, those are some copycat scammers who were able to scam people for $2.1 Million that were recovered.
This was just a fraction of the original $45.7Million funds recovered.
I would like to quote something interesting from this article:
Zhuzhou County Court found that the "peacekeeping card" pyramid selling organization outside the territory of China to promote the virtual currency organization, MLM website and marketing model by the Bulgarian Luya organization established, the server set up in Denmark, Copenhagen
Since when does official Onecoin company has any servers set up in Denmark? Well, those scammers might, let them do the sentence but leave the company out of it.
This all looks just like Onecoin has the same fate as Bitcoin with scammers using its name.
This China action looks just like Bolivian action where Bolivian Authorities Arrested 60 Bitcoiners, Reiterate Virtual Currencies as Illegal Pyramid Schemes
So is Bitcoin to blame for this? Of course not, some even defend it:
Bolivia’s Government Arrests 60 People Over a Pyramid Scheme – Not Bitcoin
But Onecoin is centralized company and it gets attached all those scammers blame. It will be challenging to carry out and survive all these negative events spiced with much twists and slander.