BCC Mining Network Review: Unsavory Crypto Mining Securities Fraud Scheme to Avoid?
BehindMLM is known for their reviews of various cryptocurrency platforms, exposing them for the frauds they could be. One of the recent subjects of interest for them was BCC Mining Network, which privately registered their domain on June 9th of this year.
The company’s official Facebook page predominantly features Spanish posts, so the BehindMLM reviewers had a difficult time with the “language barrier.” This also inhibited their search for information on CEO Jose Mendoza. Much like other platforms that the company has evaluated, there is no product or service associated with the platform, though users have a chance to enlist in a membership.
The memberships draw in users by promising a return on their investment (ROI) . The membership that the user participates in will directly determine how much they can make back. The available memberships include:
- Start: $250 investment for a 5% ROI
- Bronze: $500 investment for a 10% ROI
- Silver: $1,000 investment for a 20% ROI
- Gold: $2,500 investment for a 50% ROI
- Platinum: $5,000 investment for a 100% ROI
- Diamond: $10,000 investment for a 200% ROI
- Master Diamond: $20,000 investment for a 400% ROI
- Master Mining: $25,000 investment for a 500% ROI
BehindMLM points out that the BCC Mining Network doesn’t offer any details about the way that the ROI earnings are paid out. However, they note that the payouts occur either daily or weekly.
Along with the initial investment, this website says that the affiliates who participate are able to get paid for recruiting other affiliates, which is basically the definition of a pyramid scheme. The amount of commission is directly tied in with the membership they choose, ranging from 10% to 15%. While the company requires users to pay their membership fees in USD currency, the payouts are only provided with Bitcoin or Bitcoin Cash, which varies in value as the market changes. Furthermore, the withdrawal of the funds comes at a 5% fee.
Considering that the company uses cryptocurrency, which is drawn from “mining farms in the USA and other cities of the world, it qualifies as a securities offering. The offering would require the company to register with the regulators in the US, complying with the protocols outlined by the SEC. However, based on the information gathered, neither the CEO or the BCC Mining Network has performed this registration.
According to BehindMLM, the BCC Mining Network is “generating external ROI revenue but still operating as an illegal unregistered securities pyramid scheme.” At best, they see it as a “full blown Ponzi scheme.”
Continuing, the report concludes,
“Typically when we see MLM cryptocurrencies offer unregistered securities it is because, either in part or in full, they are recycling newly invested funds to pay off existing investors. This results in the majority of investors losing money when the scheme inevitably collapses. Based on the current regulatory status of the company, there is an extremely high probability BCC Mining Network falls into this category.”