Why these schemes fail as new investors will dry up exposing it for what it truly is.
When I posted earlier today this was information I received regarding a phone call with a friend who was scammed in the MTI scheme. I thought I would have a poke around and try and get some facts as it is interesting how these people can pull this stuff off.
$2000 invested with 10% guaranteed monthly accumulated growth works out to be in the region of $185 Million after 10 years. What were these people smoking to believe that. The truth is you believe what you want to hear as you like the sound of being wealthy.
The so called 280 000 accounts is apparently more like 50-60 000 as because of the referral system with built in commission many members had more than 1 account and were piggy backing off their own accounts. 10 percent commissions were paid out to members securing new accounts which should have been an immediate red flag. That makes clear sense and the type of "investors " involved in this scenario.
The FBI are also heading up the investigation now as they are obliged when USD is used in fraudulent business. It is estimated that of the 50-60 000 accounts 20 percent were from the US and the UK. It is understood a bulk of the investors on the US side were from California.
Financial regulators in Texas and Canada sounded alarm bells months ago stating this was a fraudulent business practice yet still nothing was done. Already some of the investigation has pointed to certain parties in California who were bad eggs and have now filed for bankruptcy.
The head of the operation has fled to Brazil via Doha and maybe was forced to play his hand earlier than expected. Surely with Bitcoin over $40 000 he would have lured more "investors" in to his evil plan but Covid messed with that. having no international flights for so long and then having a short window of time as the President and SA Government could close any escape plan at a moments notice.
It turns out he fled on the 23rd December just before Christmas buying him some time before others realised what had just happened. the time delays don't exactly help resolve the issue and chances of finding the missing millions is slim to not happening. Anyone wanting to hide crypto uses something called a mixer which mixes it all up with other wallets doing the same thing and spits it out making it harder to trace. Amazing what is out there that I had no clue about and why reading up on this stuff is fascinating to me.
International laws vary from country to country which will make things much harder. The companies servers were based In India of all places which has rather harsh penalties for those involved in financial fraudulent crime.
I don't expect the "investors" will ever see their money again as so many of these things have happened in the past with no success. The only thing that could help them is when countries go into lock down mode as travel restrictions will be limited and this will happen throughout the year. he has left his wife and kids behind yet she is still defending him so she will be the next to suddenly disappear and they must be keeping close tabs on her.
This whole thing is like a film we have seen in the past as it doesn't seem real yet it is. People are stupid enough to get caught up in this regularly as greed outweighs proper thought. Lack of understanding as who would go to an ATM and withdraw money and hand it to an arbitrary person with fake promises. This is exactly what they have done as they sent Bitcoin directly to a wallet that isn't their own and is more like a gift. Possibly what they have done is not illegal in some eyes as people were stupid enough to fall for this.
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