President of MoneyFree Club Crypto MLM Scam Detained, a My Trader Coin Leader
President of MoneyFree Club Detained, Yet Another Crypto MLM Scam
As per Behind MLM, President of MoneyFree Club, Andre Feitosa was arrested for possibly conducting a cryptocurrency based multi-level marketing (MLM) scam.
According to the report, the arrest was carried out on Saturday, August 18 in Santo Domingo. He was charged for having stolen nearly USD$20 million from over thousands of individuals who participated in the scheme. The investigation was an ongoing effort, as the victims of MoneyFree reported their losses to the police in as early as May to July.
Further digging in revealed that the funds Feitosa managed to scam out of the victims was spent in an enjoyable way, that is through investing in new “apartments, jeeps, and luxury vehicles,” notes Behind MLM.
Unfortunately, he was the only one to have gotten caught since the investigation, as the other involved members, namely, Rafael Pimentel Mendez, Victor Manuel Pichardo and Guarien Jesus Ariza Lluberes remain on the police’s radar.
All the members involved supposedly have several “high-tech crimes” under their belt. In particular, this scam was not Feitosa’s first, as he was apparently part of another Ponzi Scheme dubbed, “My Trader Coin”, which has since been shut down.
According to a local news outlet, Dominican Today, promises were made to investors – who were largely novice – that “outstanding profits” would be made. A victim who remains unnamed shared a little bit on the tactic used by the MoneyFree Club team. They were quoted saying the following,
“They made a rule saying no one could withdraw their money and you had to get more people to join, which led me to realize it was a scam.”
Clearly, this is a MLM Ponzi scheme at its best! Investors, especially newbies, need to be educated on the possible ways scammers can rid one of their money. One particular way to identify a scam is if the team boasts of a ridiculously high ROI.
What other points are enough to call a project a “scam”? Let us know in the comments below.