An illegality alert has been issued against Crowd1, HyperFund, and Solmax Global by Nepal’s top financial authority.
Crowd1, HyperFund, and Solmax Global are recognized as MLM businesses by the Nepal Rastra Bank that uses cryptocurrencies.
In Nepal, both network marketing (MLM) and cryptocurrencies are prohibited.
Affiliates in the long-running MLM Ponzi scam Crowd1 can now invest in a UK shell firm. A crypto NFT “game” that solicits investment is also available.
In the wake of many regulatory cautions, HyperFund changed its name to Hyperverse in the latter half of 2021. The Ponzi scheme wants to engage in NFT fraud but is always having withdrawal issues.
Launched in 2018, Solmax Global was an MLM cryptocurrency Ponzi scam. Pakistan, which has Nepal to its east, was where Solmax Global was predominantly advertised.
October 2021 saw the fall of Solmax Global. The restart was declared right away.
On January 23, the Nepal Rastra Bank issued a warning.
The Department of Revenue Investigation in Nepal has reportedly taken action against four people, according to a story in the Himalayan Times on January 26.
A DRI investigation into the suspects’ marketing of Crowd1, HyperFund, and Solmax Global led to the filing of a complaint against the four individuals, three of whom are family members.
From the con artists, the DRI was able to recoup Rs. 370 million (USD 3 million).