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“As long as greed is stronger than compassion, there will always be suffering.” – Rusty Eric

Multilevel Marketing (MLM) Schemes, Pyramid Schemes, Ponzi Schemes have many similarities but are different. However, they do have in common the fuel that drives them, i.e., greed. As a result, many unsuspecting victims suffer the unfortunate demise of losing their money. Here is a great read, Multi-Level Marketing Unmasked by Dr. Jon M. Taylor.

The world has suffered an economic crisis due to the coronavirus pandemic, where job losses and businesses’ closure are at a record high. Many who are still employed have had to settle for salary cuts, making it difficult to make ends meet. Those who are unemployed have a much worse situation.

How then will persons make money to provide for their families, given the current economic climate? They turn to high-risk MLM, pyramid, or Ponzi schemes such as Blessing / Flower Sou Sous and CashFX (Bitcoin Arbitrage Scheme). 

Over the past months, we have seen several iterations of these sou sou and bitcoin schemes, which have collapsed, taking millions and billions of their participants’ money with them. Yet, many still exist, giving persons false hope that they will become wealthy by joining and recruiting others to the scheme. 

Some may say that the participants of these programmes are foolish, lack financial intelligence, are lazy or want to ‘get-rich-quick.’ In some instances, these assumptions may be correct; but, taking into consideration the ‘hard times’ people are experiencing, the curse of desperation has manifested itself on a significant scale, making them easy targets for MLM-recruiters.

This article is not to debate if these deceptive programmes can or cannot work, but to highlight the risks persons are taking to turn over their money given the gravity of Trinidad and Tobago’s economic situation.

“He who is greedy is always in want.” – Horace

What expedites the inevitable collapse of these deceptive programmes is the TOPPS’s greed and selfishness (Top of the Pyramid Promoters). The confidence men and women (con men/women) who hypnotize the gullible with their words, bravado, and charm, wooing them into their scheme because “who doesn’t need some extra money?…right” They show the potential future returns if you keep increasing your stake in the scheme.

The enticing ranks that can be achieved, such as Executive, Manager, President, Ambassador, give you a false sense of accomplishment. At the same time, your money is stuck in the scheme and slowly trickles back to you, and their pockets keep getting fatter and fatter.

 “Bitcoin is not a currency for the government; it is a global currency for the people.” – Wences Casares

If you have not heard about Bitcoin, you have not been paying attention. Bitcoin is a cryptocurrency that is considered digital gold and puts you in charge of your money, making you your bank.

Like anything good, it can be tarnished by greedy opportunists. Then came the birth of Bitcoin arbitrage, mining, high yield investment programmes (HYIP), and lending scams. 

These scams, pyramid schemes, and HYIP programmes are continuously evolving as the adoption of Bitcoin and cryptocurrencies increases. One of the latest Bitcoin-Forex Pyramid Schemes, which has gained significant popularity, is CashFX. 

WHAT IS CASHFX?

Cash Forex Group (CashFX) is an unregulated Panama-based investment company that claims to obtain revenue from trading foreign exchange (Forex) and cryptocurrencies and use these proceeds to compensate “investors.”

The challenge with unregulated investment companies is that there is no recourse if they randomly disappear with your money. They are often anonymous, provide fake documents, and their websites are populated with ambiguous information, unverifiable testimonials, and unrelated ramblings about success, to give the perception of legitimacy.

Any legitimate investment company should meet the countries’ regulatory requirements where they operate, and their information should be easily verifiable.

“Real Eyes Realize Real Lies”

 CASHFX GROUP CLAIMS

  1. Bitcoin returns are generated from trading Forex and Cryptocurrencies, and this is what they use to pay investors. Unfortunately, there is no proof to support these claims. 
  2. Forex training is provided through their “Academy” educational programme. However, you would not have access to any trading platform, trading tools, or charts because you would not do trading.
  3. All trades are done by their hired brokers and AI trading bot Expert Advisors, and that is it – you will earn money on autopilot. There is no trade history or proof to support these claims.
  4. They operate through corporate accounts that allow them to manage capital of different parts of the world with absolute security….The company only accepts Bitcoin payments. Don’t take our word for it, they said it best.What is even more ambiguous is that they claim to buy “packages” with Bitcoin then convert it to FIAT and deposit the FIAT to be traded…What happens next? Are the proceeds from trading in FIAT then used to buy bitcoin to then pay commissions? We can’t make this up.
  5. Maximum Trading Cap  of 15% return per week – There are no traders in the world, trading algorithms, or trading bots that win all trades. No reports on trade history are provided to validate trades.
  6. Withdrawal requests are paid out within three (3) business days after request. In SPECIAL circumstances, such as global crisis, market volatility, long delays in exchange times causing drastic negative fluctuation in BTC, etc. withdrawals could take up to one (1) week to reach your Bitcoin Wallet.– Basically, they can use any of the above excuses to prolong the transfer of your bitcoin to your wallet.

Ask yourself the following:

      1. Why does a withdrawal require 3 business days?
      2. Why is the withdrawal fee a whopping 20% of the withdrawal amount? Remember this is not a “ponzi scheme;” pun intended.
      3. Does this make any sense? – …global crisis, market volatility, long delays in exchange times causing drastic negative fluctuation in BTC, etc. withdrawals could take up to one (1) week to reach your Bitcoin Wallet.

CASHFX TERMS AND CONDITIONS

It is doubtful that many of the participants of this scheme read their terms and conditions. It is structured in a way that enables them to change information about the company including management, services offered, operations, and the location without prior notice. Also, if for any reason a dispute arises it must be resolved via an arbitration team chosen by their legal. Basically, they can be an apple one day, an orange the next, and can exit with their participants’ money due to ambiguous legalese.

Remember CashFx requires minimal effort. Invest your bitcoin, they “trade on your behalf” and you are guaranteed weekly returns on your investment.

If you understand the basics of bitcoin, you would understand, “Not your keys, not your crypto!”

 “Deception may give us what we want for the present, but it will always take it away in the end.” – Rachael Hawthorne

 THE RISKS

CashFX Group was added to Quebec’s list of illegal investment companies and several securities fraud warnings have been issued by other regulatory agencies:

  1. Financial Conduct Authority in the UK
  2. Financial Supervisory Authority of Norway
  3. Panama’s Superintendency of the Securities Market (SMV)
  4. The Securities Commission of the Bahamas
  5. British Columbia Securities Commission in Canada

CashFX is no different from other Ponzi or pyramid schemes that landed on our shores of Trinidad and Tobago and spread like wildfire through the heavy promotion by greed-driven MLM and Ponzi Promoters. It is a textbook replica of other Forex and Bitcoin schemes that collapsed. Below are a few notable ones.

  • Troncase
  • QubitTech/QubitLife
  • Watermine
  • Bitfinevo
  • Silverstar
  • FX Trading Corp (F2 Trading Corp)
  • GladiaCoin
  • USI Tech
  • BitClub Network
  • Bitconnect

Their deceptive marketing focuses on Forex Education and TradingThis is not the real business, which is recruiting your friends, family, and everyone you can convince to join the scheme so you can level up and earn more Bitcoin, which slowly trickles into your wallet while the scheme is alive.

The company commits securities fraud by not providing regulators and consumers with audited financial reports. No reports have been provided to confirm whether trades are actually taking place and, more importantly, whether trading revenue is in fact being used to pay affiliate investors.

Since the CashFX Group only accepts Bitcoin, it is challenging for participants to obtain Bitcoin locally. As a result, many Trickydadians have used this challenge as an opportunity to not only rip off purchasers by overcharging for the Bitcoin, but also to scam participants out of their money by making false claims that they can provide Bitcoin, and even scam the brokers as well through unscrupulous tactics.

When CashFX collapses, and it will like its predecessors, over one thousand and five hundred participants in Trinidad and Tobago would have lost ALL their money: life savings, pensions, salaries, and burrowed money. It will be a multi-million-dollar disaster.

The dog-eat-dog, survival of the fittest, and greedy nature of humans would not change. However, if regulators hold Ponzi and pyramid scheme promotors responsible for their actions, we can significantly reduce financial loss. On the flipside, education about finance, investment, and risk management are necessities for improving one’s financing situation. 

If you are thinking about joining CashFX, or any other magical money multiplier programmes, consider the devil in the details before risking your money. If you are already participating in CashFX, keep holding on to the string of hope that you get back your initial investment before it collapses.

Due diligence is important when considering any investment!

 Here are some notable Bitcoin MLM, Pyramid, and Ponzi schemes that collapsed or will soon collapse. Observe the similarities between them.

 CASHFX – STILL RUNNING

 

 

QUBITTECH/QUBITLIFE – RECENTLY COLLAPSED

1. Did you know that their registered offices were virtual offices? (Like Regus in POS)

2. Did you know the insurance policy document, claiming $100 million coverage, from an insurance company in the Czech Republic is non-existent and the company has confirmed the policy number did not exist and the syntax of the number was wrong?

3. Did you know that the patent application from Czech Republic was faked! On the audit document by Ernst & Young, it was confirmed with the company and the supposed signatory, that his signature was forged?

4. Did you know in an effort to get some hype about quantum technology, their whitepaper was a copy and paste of another company’s website, unaltered into their document?

5. Did you know that there are several European and Middle East police investigations into all the people involved behind the scenes, like Marc Swickle, Greg Limon, Jorge Sebastiao, Arijit, Graham Leach, Andrei Elichin and a slew of Russians? Before asking for proof….here is some due diligence.

BITFINEVO

 

GLADIACOIN – COLLAPSED

USEFUL RESOURCES

USI TECH – COLLAPSED

https://coincentral.com/usi-tech-crypto-scam

BITCLUB NETWORK – COLLAPSED

USEFUL RESOURCES

BITCONNECT – COLLAPSED

USEFUL RESOURCES

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