Rainbow Shared Energy has received an investment fraud warning from Germany’s BaFin.

BaFin’s April 20th Rainbow Shared Energy warning pertains to failure to publish a prospectus.

The German Federal Financial Supervisory Authority (BaFin) has indications that Rainbow Shared Energy Ltd., based in Hong Kong, is publicly offering an investment in Germany in the form of a different type of investment as defined in Section 1 Paragraph 2 No. 7 of the German Investment Act (VermAnlG).

Contrary to Section 6 of the VermAnlG, no sales prospectus has been published for this investment.

In Germany, investment products may not, in principle, be publicly offered without the publication of a sales prospectus previously approved by BaFin (the Federal Financial Supervisory Authority).

Violations of the the German Investment Act constitute investment fraud under German financial law.

Rainbow Shared Energy is a rebooted “click a button” app Ponzi targeting Orange Cat Energy victims. A significant number of Orange Cat Energy investors are believed to be from Germany.

The Ponzi ruse behind Rainbow Shared Energy and Orange Cat Energy is rental of fictional power banks. BaFin notes the connection in its warning;

BaFin currently assumes that Rainbow Shared Energy Ltd. is a company affiliated with Orange Cat Energy Technology Co. Ltd.

The German Federal Financial Supervisory Authority (BaFin) is currently investigating Orange Cat Energy Technology Co. Ltd., based in Hong Kong, for publicly offering investments without the required prospectus.

These investments also involve the leasing of power bank charging stations (“device cooperation”).

MLM “click a button” app Ponzi schemes are run by Chinese scammers hiding in south-east Asia. BehindMLM has documented hundreds of the scams since they first emerged back in 2021.