Welcome to the Crypto-MLM Wave “made in Germany”
The world of cryptocurrencies is full of strange people and even stranger projects and schemes. Unfortunately, most of these strange ventures are just busy collecting money from private investors in questionable ways. Thanks to a mostly “bank-free” and “boundless” crypto-world and thanks to Facebook groups, this accumulation of millions of investors’ funds via pseudonymous blockchain wallets takes place at an unprecedented speed and ease and with unimaginable amounts of money.
Even though most people would think now of publicly conducted ICO’s in the first place, this phenomenon is perhaps most evident in the area of Multi-Level-Marketing (MLM) schemes. The combination of MLM and crypto proved themselves to be a powerful vehicle to roll out “get-rich-quickly” schemes on a global scale via private meetings, events, and with Facebook.
The two people on the cover of the FAST COMPANY magazine (South Africa issue) are actually neither the “Bitcoin Kings” nor somehow at all at home in the cryptoworld. The bearded man on the left is the German Mao LAL and the guy on the left is the world-famous self-made (underdog) millionaire, wealth coach and motivator JT FOXX (look at his website), a US guy.
The two have formed a powerful alliance to promote a crypto-MLM project called CRYPTOGOLD. The goal of this German project with US flavor is simply to sell the crypto-mining package to naive investors worldwide through distributors! The simple selling point of CRYPTOGOLD:
Cryptocurrency! Set up and install a money printing machine in 5 steps! (Source: Facebook Page)
Wow! After all, almost 3,000 people love this crypto-money printing machine’s Facebook page. It’s another German crypto-MLM scheme like USI-TECH, OMNIA TECH or NEXUS GLOBAL. All of them sell the “made in Germany” brand and have a strong “Dubai connection”. Whether Dubai’s attraction for these MLM operators lies only in the tax benefits or whether it is perhaps also the non-existence of extradition agreements in the criminal field, we do not yet know, but we are starting a special report in this regard. Dubai has also been the hiding place of the famous Indian crypto-MLM artist Amit BHRADWAJ who has been arrested already for cheating investors with his crypto-schemes.
The Austrian Regulator files a criminal charge against CRYPTOGOLD
While Mao LAL and JT FOXX have been celebrated as the Bitcoin Kings, the Austrian Financial Market Authority (FMA) has already reported the CryptoGold project to the Austrian public prosecutor’s office for suspected investor fraud. Nikolaus JILCH already reported on this in the Austrian medium DIE PRESSE in mid-May 2018. But what can a local medium like DIE PRESSE do to the crypto-MLM’s global fake news machine? Nothing at all, really!
The fake news around CRYPTOGOLD rolls on in Facebook postings, JT FOXX videos on youtube, and other social media channels. Those guys actually don’t care about the regulators, prosecutors, and enforcement agencies in Europe. “Catch me if you can!” seems to be their way of doing their crypto-ventures.
Fake News, Fake Identities and Real Problems
Given the support of underdog millionaire JT FOXX it will come as no surprise that CRYPTOGOLD has enjoyed the favor of investors for a few months and has probably raised many millions. CryptoGold payout problems are now reported on Facebook by one of its most important distributors. Of course, he appears with a “fake identity” as Dmitri SAVALEJEV.
Unfortunately, SAVALEJEV had to inform his approximately 1,700 members in his CRYPTOGOLD Facebook group that a new monitoring system cause problems with payments to investors and even account blocks. Those weren’t the first problems he had to report. A few days earlier, SAVALEJEV had to inform investors that there had been a massive drop in payouts due to problems in the procurement of crypto-mining hardware. Well, those are not good signals in a pyramid scheme.
The Circus Moves on, Next stop: NEXUS GLOBAL
SAVALEJEV is a diligent artist when it comes to investors’ funds and MLM schemes. He also appears to be an important distributor and leader of the NEXUS GLOBAL crypto-MLM system, where he also runs a Facebook group with 15,000 members. Well, then. Then he won’t die of poverty just because CryptoGold will soon disappear and the two Bitcoin kings will be overthrown. But by then, they will have received millions of investor money.
It is noteworthy that although Facebook has taken action against Bitcoins and ICO’s, the crypto-MLM’s hasnot had any problems with Facebok. The NEXUS GLOBAL Facebook group, for example, already has more than 45,600 members. A lot of money has evidently been collected for another MLM-cryptomining scheme.
Most of these crypto-MLM systems did not start until 2017 and most of them are showing clear signs of decay in view of the declining prices of the cryptocurrencies and the resulting decline in investors.
Also published on Medium.