A Cloud Token affiliate investor has been “fined” 1000 CTO points, purportedly for failing to explain the opportunity to someone they recruited.

According to a recent Facebook post by Cloud Token admin Ronald Aai, an affiliate was “fined” 1000 CTOs for ‘fail(ing) to explain … how (Cloud Token’s) affiliate program works‘.

In terms of what that means practically, Cloud Token transferred 1000 CTO from an affiliate’s app wallet.

At the last known internal value, 1000 CTO is worth $412 within Cloud Token.

Despite CTO points being worthless outside of Cloud Token, Aai (right) claims confiscated CTO points will be put in a “charity fund”.

Whether this will require a charity to sign up to the Ponzi scheme, or whether Aai will convert the points to real money for donation is unclear.

Cloud Token affiliates invest in CTO points. The company arbitrarily increases the internal value of CTO points, allowing affiliates to cash out more than they originally invested.

In the absence of a verifiable external revenue source, Cloud Token pays withdrawal requests with subsequently invested funds.

Going forward, Aai warned the rest of the Cloud Token affiliate-base he’d be dishing out fines to “lazy sponsors” from June 8th.

If you ask me affiliate questions I will fine your sponsor.

If you ask me marketing questions I will fine your sponsor.

Aai also suggested affiliates who request password resets might also be fined in the future.

Putting aside the fact that a legitimate MLM company wouldn’t get away with stealing money from affiliates, Aai’s actions shed light on what might be an eventual exit-scam strategy.

Cloud Token are evidently able to manipulate CTO app wallet balances at whim.

When the time comes to do a runner (new investment dries up), all Aai has to do is issue a company-wide wallet reset.

Something something “we got hacked”, you know how it goes.

Can’t get scammed if your backoffice says you don’t have any Ponzi points to cash out, right?