Ten MLM crypto Ponzi scams have received cease and desist letters from California’s Department of Financial Protection & Innovation.
According to a press release from September 27 and, if available, the relevant BehindMLM evaluations, DFPI has issued cease and desist orders to:
Cryptos OTC Platform Limited, often known as COTP (reviewed March 2022, collapsed May 2022)
escalator pass (Reviewed August 2021, collapsed in May 2022, and again in August 2022)
Yielders for MetaFi (reviewed May 2022, collapsed later the same month)
Pegasus (reviewed May 2022, collapsed August 2022) (reviewed May 2022, collapsed August 2022)
Polina (reviewed July 2022, collapsed August 2022) (reviewed July 2022, collapsed August 2022)
Remabit (collapsed) (collapsed)
SityTrade (collapsed) (collapsed)
Trade Sytrex (Reviewed August 2022, collapsed shortly after)
Exam
Known as World Over the Counter Limited, WorldOTC (Reviewed August 2022, collapsed earlier this month)
Greencorp Investment, a non-MLM cryptocurrency Ponzi, was also a target.
DFPI alerts the public about the aforementioned frauds.
reportedly marketed and sold unqualified securities, and eleven of them are also accused of making materially false and misleading investor statements.
All of the organizations are accused of operating like a Ponzi scheme by using money from investors to pay out supposed gains to more investors.
Each of the entities also had a referral program that functioned like a pyramid scheme.
The main social media platforms used for recruiting US citizens into MLM crypto Ponzi scams include Facebook, Telegram, and YouTube.
The organizations guaranteed to pay investors commissions if they attracted new investors, as well as further commissions if those new investors attracted more new investors.
The referral schemes worked as intended, encouraging investors to produce and publish material on social media platforms like YouTube to persuade others to invest in these businesses.
The parties involved in the current actions are exemplary high-yield investment schemes (HYIPs).
These investment frauds frequently make high returns with low risk and excessively consistent returns, give few details about the individuals running the HYIP, use ambiguous language to describe how the HYIP makes money, offer referral bonuses, allow deposits and withdrawals with cryptocurrency assets, and use social media to draw in investors.
These scams frequently target the most recent investment opportunity, and in the past, they have targeted investments in cannabis, oil and gas, and other sectors.
The good news is that federal officials frequently follow state regulators in issuing cease and desist orders.
MLM crypto Ponzi schemes and the con artists that promote them are governed by the SEC in the US. Additionally, the DOJ has been accusing people of money laundering and wire fraud more frequently lately.
The DFPI urges MLM crypto Ponzi victims and their promoters to submit an online complaint. Through the SEC, complaints may also be made at the federal level.
