Cloud Token drops investment terminology, pseudo-compliance ahoy
As the most prominent app wallet Ponzi scheme on the market, it’s only a matter of time before Cloud Token attracts regulatory attention.
Evidently fully aware of this, Cloud Token has begun to embrace pseudo-compliance.
In it’s latest app update, Cloud Token advises it has removed any references to returns.
Instead, Cloud Token now refers to returns affiliates receive as “rewards”.
From a regulatory perspective, Cloud Token can call its returns whatever it chooses.
The mechanics of payment within Cloud Token sees affiliates invest $x in CTO points.
CTO points are parked with the company within their app, providing affiliates with additional CTO points.
Over time Cloud Token arbitrarily increases the internal CTO value, thus allowing affiliates to withdraw more than they’ve invested.
Reward, return… it is what it is – securities fraud.
This isn’t the first time Cloud Token has attempted to distance itself from its fraudulent business model.
Previously Cloud Token admin Ronald Ai and US promoter Faith Sloan claimed that because the company was investing funds invested into by affiliates, that affiliates themselves weren’t investing.
This convoluted logic fell apart upon consideration that affiliates were paid returns (a security exists when a return is derived via the efforts of a third-party).
At present Cloud Token is operated between Malaysia and Singapore. The company also has a notable presence in the US, headed up by a number of serial scammers.
As of yet the Bank of Malaysia, Monetary Authority of Singapore or the US SEC has taken any action against the scheme.
Given Cloud Token is now adopting Zeek Rewards’ and TelexFree’s greatest hits, regulatory action probably isn’t too far behind.