In the intricate crypto world, transparency is key to building trust among investors. However, the L7 DEX scheme, operating under the guise of a decentralized asset management protocol based on Web3, raises red flags due to its opaque nature and potential connections to fraudulent activities. The L7 DEX website, encompassing domains like L7dex.com, L7dex.financial, and L7pay.finance, is shrouded in secrecy, offering little information about its operating legal entities and key individuals.
The L7 DEX Ponzi Scheme
This lack of transparency is a significant concern, particularly for a financial scheme dealing with crypto assets. As reported by FinTelegram and highlighted by intelligence service BehindMLM, L7 DEX is suspected to be a Ponzi scheme, a claim substantiated by its promise of unrealistically high returns on crypto assets. The scheme boasts a daily 1.5% staking award on invested funds, a characteristic hallmark of Ponzi schemes.
At FinTelegram, we’ve designated L7 DEX as “under investigation” and are preparing to release a comprehensive review, including a rating, to provide potential investors with insights into the risks associated with this venture.
Notably, there are suspicions that L7 DEX might be linked to other notorious schemes like Paraiba World and Trillant, both facing criminal charges and regulatory scrutiny. The lack of clarity regarding L7 DEX‘s connections heightens concerns about its legitimacy.
The scheme’s crypto debit card, issued by Alchemy GPS Europe UAB in Lithuania, adds another layer of complexity. While the card offers virtual versions with Visa and MasterCard options, the absence of clear operator information on L7 DEX websites is disconcerting. Furthermore, Alchemy Pay‘s registration with the Financial Crimes Investigation Service of Lithuania as a Virtual Asset Service Provider does not guarantee supervision but necessitates compliance with anti-money laundering laws.
Read our open letter to Alchemy Pay here.
Masterminds and Key People
Our investigation reveals that key figures behind the L7 DEX Crypto MLM Scheme include Eddie Chong (link), Gerald Check (LinkedIn), and German individuals like Andreas Wengler, Sandra Gutzeit, Waldemar Gutzeit, and Alexander Brodjienski.
Notably, the German MLM artist Dirk Griesdorn, a former mental and NLP trainer, emerges as a significant contributor to the L7 scheme, with questionable associations in the crypto scene, including ties to the notorious CMC Invest and Paraiba World schemes.
Call For Whistleblower Information
As concerns escalate regarding the legitimacy of L7 DEX, FinTelegram urges whistleblowers to come forward with additional information. The lack of transparency and potential links to Ponzi schemes raise serious questions about the scheme’s credibility, emphasizing the need for a collective effort to uncover the truth and protect unsuspecting crypto investors.
Please share your information and experiences via our whistleblowing system, Whistle42.