The Ponzi scheme run by Kuailian has failed.
The company is giving its affiliates three choices for what to do next.
On September 29, a “corporate call” hosted by Communications Coordinator Fanis Anamourlis was where Kuailian announced that it was going out of business.
David Ruiz de Leon, the founder,r and CEO of Kuailian, was nowhere to be found.
In January 2020, BehindMLM looked at Kuailian. We found a fake investment plan that promised a 320% return on $100 or more invested in KUAI Ponzi points.
Anamourlis blames “aggressive corrections” in the crypto market instead of just admitting that Kuailian was a Ponzi scheme that ran out of money.
Then, Anamourlis says that Kuailian’s Spanish victims are to blame, which brings us to a class-action lawsuit that was filed earlier this year.
At the end of March, more than 300 Kuailian victims sued a local promoter named Javier Biosca Rodriguez, his wife Paloma Gallardo, and their son Sergio Biosca.
It is said that Rodriguez had more than 4,000 investors in his Kuailian downline. He asked for money for Kuailian through a UK company called “Algorithms Group LTD.”
In any case, Spanish Kuailian investors were told that they would get 20% to 25% back each month in 2019. By the time BehindMLM did its review in January 2020, this number had droppedfromo 8% to 10%.
Returns kept going down all through 2020, up until November, when Kuailian stopped paying returns altogether.
It is thought that investors will lose hundreds of millions of euros.
The class action was accepted by the National Court, and Rodriguez was arrested in Malaga in June.
Kuailian was also the subject of a complaint, which Anamourlis talks about.
[3:45] The Spanish market is in a tough spot right now.
False accusations have hurt us a lot, and they have been all over social networks and other ways to talk to people.
[4:04] It seems that the lawsuit in the National Court, which is still in the preliminary investigation phase and doesn’t have any defendants or proof to back up the accusations, is using up our resources. This is because we have to process a lot of information to present and defend our interests.
Anamourlis also says that Kuailian has given the National Court “more than a hundred thousand” pages of proof to back up his claims.
[5:09] Unfortunately, the situationinn the Spanish market is affecting the rest of the market, which leads us to a clear conclusion:
We don’t think it’s the right time to put any products on the market or move forward until we’ve won the legal case.
So, the time has come to put an end to the cycle.
“End the cycle” means that Kuailian should start its exit scam.
As part of that scam, Kuailian gives the people he is trying to scam three options.
They can first put in a
[7:50] You can ask for a liquidation, and you’ll get back the amount you put in, based on how much it’s worth now on the market.
The most important part of that sentence is “the value it has now on the market.” One victim who left a comment on our Kuailian review said they think they’ll lose 50% of the money they put in.
Second, victims of Kuailian can choose to let their investment contract run until it expires. At that point, they will be paid whatever the contract is worth.
Anamourlis says that if this choice is made, future returns will be “much lower than they are now.”
This choice doesn’t make much sense when you consider that Kuailian won’t pay withdrawals for most of 2021 and that Anamourlis says:
[6:24] The way we’ve done staking since 2018 isn’t working anymore because of how the market is.
It doesn’t make sense to trash your Ponzi scheme and then offer it to people as a way to get deeper into debt.
The third choice is 160% of 80% of what a Kuailian victim invested, less any returns that have already been paid out.
The only problem with this choice is
70% will be paid out in 17 equal monthly payments. The first payment will be made one month after the repurchase agreement is signed.
And a final payment (the 18th) worth 30% of the final price to buy it back.
Again, this choice doesn’t make much sense, since Kuailian already can’t pay withdrawals.
Any number of victims who choose the first option will use up what’s left, leaving even less money to pay for options two and three.
Or, and I think this is more likely, Kuailian won’t pay anything and this is all just talk for the court.
I would be very surprised if David Ruiz de Leon was still in Spain after seeing Javier Biosca Rodriguez get arrested.
Ruiz de Leon’s last official appearance for Kuailian was on a corporate call on June 6, where he tried to explain why Kuailian hadn’t paid.
Unless he gets caught by surpris,e later on, I don’t think we’ll see him again any time soon.