New digital pyramid scheme from Africa
Cryptocurrencies, whether we like it or not, are used by a huge number of scammers from all over the world. Various scammers launch new dishonest companies built on the Blockchain every day. One of these was the new financial pyramid launched in Africa. Next, we will tell you everything that is known about this rather dangerous site. So read carefully so as not to miss important information and not become another victim of this fraudulent project. So let’s get started.
Who is behind the exposure
Much depends not only on the company that deceives users, but also on the specialists who expose the enterprise. In the case of the new pyramid, representatives of the SEC took up the fraudsters. Experts from the US Securities Commission published information about the investigation, which is directed towards the African financial pyramid. Apparently, it was Blockchain that was taken as the basis of the project. The principles of the cryptoindustry have made it possible to more effectively deceive thousands of naive investors.
This is another company that shames the glorious name of digital financial assets. The SEC has already formed an appeal to the relevant structures. The Commission has filed a request for an audit and a verdict on the new company. Representatives of the Federal Court of Maryland, Greenbelt, will undertake additional checks and announcement of the results. The reason for the investigation is a violation of the provisions of the anti-fraud document. You can familiarize yourself with this paper by opening the federal legislation on securities.
The fraudsters have been charged and demanded to fully reimburse the damage suffered by investors. Literally stolen funds must be returned to unlucky investors along with interest. The amount to be reimbursed, together with the interest described, is in the order of $ 429 million. Such large sums, however, are not overwhelming capital for the owners of a dangerous cryptocurrency pyramid. Below we will tell you exactly how the fraudulent platform works and why you should be more careful when choosing partner companies.
How does the pyramid scheme work?
It is based on the Ponzi principle, standard for such structures. The site is designed in such a way as to pay old investors at the expense of new ones. Therefore, sooner or later, when the money runs out, new investors will be left without money and on the verge of ruin. However, we note that the first investors can really earn. Nevertheless, among the initial contributors are the developers of the dishonest company and their associates. Much more interesting is that the classic pyramid scheme is multiplied by the Blockchain concept.
The creators of the project even released their own cryptocurrency to back up the promoted deception. Note also that the financial pyramid focused on representatives of African migrants. The investors presented themselves as coming from disadvantaged countries as well as their audience. Thus, a closer relationship with investors was built. Users trusted their “related” entrepreneurs and boldly invested in the project. In order to get a fictitious cryptocurrency in return and finally go broke. Also, promises of an imminent receipt of income had an impact. Developers talked about 42% revenue in no time.
Like SEC representatives, we strongly advise you to carefully choose your partner companies. Be careful not to contact deceivers. You can follow all the new pyramids and other events in the cryptoindustry with us. We publish only high-quality and interesting material. Thanks for your attention. Good luck!