BitClub Network “staying anonymous” to avoid regulators
Among other things, such as the company housing several former Zeek Rewards Ponzi investors, one of the prominent red flags raised in a review of BitClub Network was the lack of information provided about the company’s owners.
In a recent newsletter sent out to affiliates, BitClub Network have decided to address the issue.
Sent out sometime in the last twenty-four hours, the BitClub Network newsletter reads:
One of the key features of Bitcoin is the private and anonymous nature of it. It works without knowing who you are or where you live so that nobody can be discriminated against.
It also requires zero trust from either party because everything is made public and verified across the entire network. Since there is no centralized location for these records nobody has the power to control or manipulate it.
Whereas a bank for example you have to “trust” them to keep your money safe and hope they provide an accurate ledger for your account.
The bank can do whatever they want because they have full control over your account and they can see everything you spend money on. But with Bitcoin and other digital currencies nobody controls or regulates the accounts and all the details are kept private, secure and anonymous.
Because of these principles we don’t need to know “who” you are, and we will never ask for any of your personal details. Likewise, the team behind BitClub Network will remain anonymous too.
There is no benefit in sharing any personal details because it will only create security risks and unwanted attention that could ultimately lead to attacks by hackers, regulators, or other organizations. So we are staying anonymous to protect this business model for everyone.
“Attacks from regulators”? How cute.
The language used strongly suggests that those running BitClub Network are disgruntled MLM Ponzi veterans. And given the Ponzi pimp clientele the company has thus far attracted, it’s likely they’re all in on it too.
BitClub Network’s business model is little more than a daily ROI promise for 1000 days, with the opportunity relying on new investment to be able to continue to pay off existing investors.
The whole “bitcoin mining” facade is just that, with the actual reason the company uses the crypto-currency revealed above: to fend of regulators who might investigate the company.
The short of it is the only people “protected” by the owner(s) of BitClub remaining anonymous are themselves, and the Ponzi protegés they’ve enlisted to promote it.
The (owners of BitClub Network) can do whatever they want because they have full control over your account and they can see everything you spend money on.
Because of these principles (the owners of BitClub Network) don’t need to know “who” you are, and we will never ask for any of your personal details. Likewise, the team behind BitClub Network will remain anonymous too (so that you don’t know who actually has your money).
When newly invested funds dry up and there isn’t enough money to pay honor withdrawal requests, by keeping the ownership structure of the company anonymous, said owners can then disappear off quietly into the night.
Or perhaps not. If anyone things US regulator aren’t on to BitCoin Ponzis, think again:
The Securities and Exchange Commission announced that, on September 18, 2014, a United States District Court in Sherman, Texas entered final judgment against Trendon T. Shavers and Bitcoin Savings and Trust (“BTCST”), the online entity Shavers created and used to operate his Ponzi scheme, and through which he defrauded investors out of more than 700,000 bitcoins.
The Court’s judgment requires Shavers and BTCST to pay more than $40 million in disgorgement and prejudgment interest, and orders each Defendant to pay a civil penalty of $150,000.
The Commission established, and the Court found, that from February 2011 through August 2012, Shavers offered and sold investments in BTCST over the internet.
Shavers solicited all investments, and paid all purported returns, in bitcoins. Operating under the internet name, “pirateat40,” Shavers solicited investors in online chat rooms and on the Bitcoin Forum, an online forum dedicated to Bitcoin, promising them up to 7% returns weekly based on his claimed trading of bitcoin against the U.S. dollar, including selling bitcoins to individuals who wanted to buy them “off the radar.”
In reality, Shavers used new bitcoins received from BTCST investors to pay purported returns on outstanding BTCST investments, and diverted BTCST investors’ bitcoins for his personal use.
The Court further found that, even as he publicly denied the Ponzi scheme on the Bitcoin Forum, Shavers knowingly and intentionally operated BTCST as a sham and a Ponzi scheme, and repeatedly made materially false and misleading representations to BTCST investors and potential investors concerning the use of their bitcoins, how he would generate the promised returns, and the safety of their investments.
It’s like looking into a crystal ball… and I bet Trendon Shavers thought he was “protected” by BitCoin’s purported anonymity too.