BitVegas.biz is a company that purportedly offers a “wide range” of investment opportunities in the world of cryptocurrency, with a stated focus on Bitcoin mining. However, it appears that BitVegas is simply a Bitcoin-based high-yield investment program (HYIP) that offers an hourly ROI of 0.15 percent and an accompanying affiliate recruitment scheme.
BitVegas.biz has a Companies House registration and an operating address in the UK. Records indicate it was founded on the 14th of June 2017 and that its principal point of contact is one Mack Gibson, also of London, at an address in Wimbledon. We haven’t been able to find any more information about Gibson other than his name and address as listed on Companies House.
Additionally, BitVegas’ site registration provides no additional clues or information either, as the site was registered – in June of 2017 – under a private registrar.
Meanwhile, BitVegas.biz major sources of site traffic, according to Alexa, are from Japan and Brazil. These two countries make up more than 50% of total traffic, making it likely that the company is located in either country. There’s no way to know for sure, of course, but it’s a good guess.
BitVegas offers one investment opportunity, an HYIP that provides 0.15% hourly ROI (or 3.6% daily ROI which seems to be pretty standard amongst industry offers. Minimum investments is 0.001 BTC and withdrawal fees are 5% of total funds withdrawn. Interest accrues 24 hours a day, 7 days a week.
BitVegas.biz also offers an affiliate recruitment scheme that provides either 5% or 10% commission-based income to existing investors who recruit new ones.
The standard 5% commission rate is the default one. Investors can unlock a promotion to 10% commissions through contacting BitVegas directly and applying to become a local representative. The specifics of this procedure are not publicly available.
BitVegas insists that the ROI it provides to its investors is sourced from its own cloud mining activities. However, there’s no real verifiable proof that this is what BitVegas is actually doing. Additionally, this fails a logic test as most crypto cloud mining collectives ask for members to contribute computing power, not money.
What is instead much more likely is that BitVegas is simply using the idea of “crypto cloud mining” as a blind for its true income generation activities – encouraging recruitment of new investors in order to provide revenue to pay existing ones. This is, of course, how the vast majority of HYIPs operate. This is reinforced by the focus BitVegas places on recruitment activities, as the company won’t be able to function for very long without a steady stream of new investment funds to pay off older investors waiting for the ROI they’re expecting.
What happens when new recruitment doesn’t produce enough money to pay off existing investors? Well, ultimately, payouts to older investors cease and any money invested into the system – from new and old investors alike – is no longer accessible.
In many cases, HYIP admins take the money – your money included – and disappear.