BitRegion Review: Bitcoin Ponzi gifting scheme

There is no information on the BitRegion website indicating who owns or runs the business.

The BitRegion website domain (“bitregion.com”) was registered on the 22nd of October 2015, however the domain registration is set to private.

Default languages on the BitRegion website are English, Chinese, Vietnamese and Indonesian.

Alexa currently estimate that some 70% of all traffic to the BitRegion website domain originates out of Japan.

This strongly suggests that whoever is running BitRegion is likely based out of Asia.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The BitRegion Product Line

BitRegion has no retailable products or services, with affiliates only able to market BitRegion affiliate membership itself.

The BitRegion Compensation Plan

The BitRegion compensation plan sees affiliates participate in a 3×8 matrix gifting scheme.

BitRegion affiliates can also invest up to 30 BTC in a perpetual 1% a day ROI Ponzi scheme.

Recruitment Commissions

When a BitRegion affiliate recruits a new affiliate, they are paid 10% of the new affiliate’s membership fee.

This fee is 0.05 BTC ($33.72), which at the current BTC exchange rate equates to a $3.37 recruitment commission.

Note that BitRegion affiliates pay a 0.05 BTC fee every time they advance in affiliate rank. This fee is commissionable at a rate of 10%.

Residual Recruitment Commissions

Residual recruitment commissions in BitRegion are paid out via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Residual recruitment commissions are paid out as a percentage of affiliate fees paid by affiliates in a unilevel team (including affiliate rank fees).

How many levels a BitRegion affiliate can earn on is determined by their rank:

• Immigrant – 10% on level 1 (personally recruited affiliates)
• Visa Holder – 10% on level 1 and 5% on level 2
• Permanent Resident – 10% on level 1, 5% on level 2 and 3% on level 3
• Citizen – 10% on level 1, 5% on level 2, 3% on level 3 and 1% on level 4
• Ambassador – 10% on level 1, 5% on level 2, 3% on level 3, 1% on level 4 and 0.5% on level 5
• Senator – 10% on level 1, 5% on level 2, 3% on level 3, 1% on level 4, 0.5% on level 5 and 0.1% on level 6
• Vice President – 10% on level 1, 5% on level 2, 3% on level 3, 1% on level 4, 0.5% on level 5, 0.1% on level 6 and 0.05% on level 7
• President – 10% on level 1, 5% on level 2, 3% on level 3, 1% on level 4, 0.5% on level 5, 0.1% on level 6, 0.05% on level 7 and 0.01% on every level thereafter

Cash Gifting

Cash gifting payments in BitRegion are tracked via a 3×8 matrix.

A 3×8 matrix places a BitRegion affiliate the top of a matrix, with three positions directly under them:

These initial three positions form the first level of the matrix. The second level of the matrix is generated by splitting each of the three positions into another three positions each (9 positions).

The third level of the matrix is generated by splitting the nine second level positions into another three positions each (27 positions).

Subsequent levels of the matrix are generated in the same manner, down a total of eight levels. A full 3×8 matrix houses 9840 positions.

Commissions within the matrix are paid as BitRegion affiliates transfer funds to eachother.

A new BitRegion affiliate is classified as an immigrant. They pay 0.15 BTC to the affiliate who recruited them, which qualifies them to receive three 0.15 BTC payments from subsequently recruited affiliates.

These three payments correspond with the three positions on the first level of their 3×8 matrix.

Once their first matrix level is full, they pay 0.45 BTC to a BitRegion affiliate which along with a 0.05 BTC rank fee, opens up the second level of their matrix.

This qualifies the affiliate to receive nine payments of 0.45 BTC from BitRegion affiliates placed in the second level of their matrix.

In this manner cash gifting continues down eight levels of the matrix, with payments and amounts received as follows:

• Immigrant (0.15 BTC gifting payment plus 0.05 BTC rank fee) – receive three 0.15 BTC gifting payments
• Visa Holder (0.45 BTC gifting payment plus 0.05 BTC rank fee) – receive nine 0.45 BTC gifting payments
• Permanent Resident (0.9 BTC gifting payment plus 0.05 BTC rank fee) – receive twenty-seven 0.9 BTC gifting payments
• Citizen (1.8 BTC BTC gifting payment plus 0.05 BTC rank fee) – receive eighty-one 1.8 BTC gifting payments
• Ambassador (2.4 BTC gifting payment plus 0.05 BTC rank fee) – receive two hundred and forty-three 2.4 BTC gifting payments
• Senator (4.2 BTC gifting payment plus 0.05 BTC rank fee) – receive seven hundred and twenty-nine 4.2 BTC gifting payments
• Vice President 6 BTC gifting payment plus 0.05 BTC rank fee) – receive two thousand one hundred and eighty-seven 6 BTC gifting payments
• President (9 BTC gifting payment plus 0.05 BTC rank fee) – receive six thousand five hundred and sixty-one 9 BTC gifting payments

Pairing Commissions

Pairing commissions in BitRegion are paid using the 3×8 matrix.

Each of the first three positions on level 1 are counted as a “leg”, with investment volume in the leg tracked monthly.

Investment volume on the stronger and weaker leg is “paired”, with affiliates earning a 0.5% to 10% commission on this amount.

• Permanent Resident – 0.5% pairing commission
• Citizen – 1% pairing commission
• Ambassador – 3% pairing commission
• Senator – 5% pairing commission
• Vice President – 7% pairing commission
• President – 10% pairing commission

Give Back Commissions

When a personally recruited affiliate qualifies at the Permanent Resident or higher ranks, the recruiting affiliate must gift half the funds they receive to three affiliates in their downline (I believe these are the three affiliates on level 1 of the matrix).

Half of the amount gifted from the Permanent Resident rank is split between these three affiliates.

To qualify to receive Give Back commissions, a BitRegion affiliate must be at the Visa Holder or higher rank themselves.

Region Bank ROIs

Under the guise of “providing help” through a “Region Bank”, BitRegion affiliates invest up to 100 BTC (currently $67,437) on the expectation of an advertised 0.5% to 1% a day ROI.

This ROI is paid out indefinitely, with affiliates able to start withdraw earnings after 20 days.

Investments made by BitRegion affiliates are converted into “BR Shares”, which affiliates use to place withdrawal requests.

In a nutshell, BitRegion affiliates invest between 0.1 and 30 BTC. They earn 0.5% a day until the funds are transferred to another BitRegion affiliate.

After the transfer they earn 1% a day, with re-investment required every 20 days.

Failure to re-invest (transfer funds to another BitRegion affiliate) results in account suspension.

Re-investment amounts are not specified in the BitRegion compensation plan material, but are believed to be the amount initially invested.

Joining BitRegion

Affiliate membership with BitRegion is 0.05 BTC.

Participation in the cash gifting matrix component of the compensation plan starts at 0.15 BTC.

Participation in the Ponzi scheme component of the BitRegion compensation plan requires a 0.1 to 30 BTC investment.

Conclusion

If you discarded the use of bitcoin, BitRegion is no different to the countless matrix-based gifting schemes that have come before it.

The Region Bank Ponzi component adds an additional layer of financial fraud, but again is nothing we haven’t seen before.

In an era of mounting cryptocurrency-based fraud from within the MLM industry, BitRegion seeks to elude regulators through use of bitcoin.

The owner(s) of BitRegion will have inserted themselves at the top of both the matrix gifting and Ponzi components of the compensation plan, ensuring they ultimately receive the lion’s share of deposited funds.

By the time BitRegion affiliates put in withdrawal requests the company can’t honor, it’s too late. The scheme will have already collapsed and mathematically, the majority of BitRegion affiliates are guaranteed to lose money.

There are some quirky “pay back” components to BitRegion, but ultimately you’re still only shuffling a finite source of invested funds around.

As far as the Ponzi scheme goes, ROIs will eventually exceed funds actually invested and trigger a collapse.

The gifting scheme will collapse once new BitRegion affiliate recruitment slows down.

Matrix positions need to be filled via recruitment, and if there’s no recruitment they stall. Stalling within the context of BitRegion’s gifting scheme, means no gifting payments are being funneled in the bottom of the company-wide matrix to pay those at the top.

Long story short? The owners of BitRegion will make the most money. A small group of early investors will make some money and a smaller group will make peanuts.

In order for these groups to be paid, everyone else loses out.