Between the SEC suing it for securities fraud and Indian authorities arresting money launderers, iX Global’s original forex and crypto mining ruses are dead.

In an effort to continue violating US federal securities law, iX Global has announced a new NFT “rewards” grift.

iX Global’s new NFT grift is run through IN8 tokens. IN8 is a BEP-20 token, created by Debt Box.

BEP-20 tokens can be created in a few minutes at little to no cost.

Despite having clear ownership, “decentralization” is a key IN8 marketing point. This is from IN8’s whitepaper;

iX believes that the decentralization movement is the future, and that it’s a movement happening on many fronts.

The IN8 NFT project, powered by D.E.B.T., is a global decentralized rewards program in sync with the entire iX ecosystem in support of the iN8 tokenomics.

This is of course baloney. iX Global is owned by Joseph Martinez (right).

Debt Box (aka D.E.B.T) is owned by Jason Anderson, Jacob Anderson, Schad Brannon and Roydon Nelson.

These individuals centrally control all aspects of IN8 and its attached NFT “rewards program”.

iX Global is selling 200,000 IN8 investment positions as NFTs. Each IN8 NFT costs $25 and provide access to a staking investment scheme.

At the launch of the IN8 project, 200,000 NFTs will be made available to wallets that have staked a DEBT token.

In order to participate in the IN8 project, all NFTs are required to be minted and staked.

A minting fee of $25 per NFT is required to mint NFTs.

Reward distributions to NFT owners will begin only after all IN8 NFTs have been minted.

Users must manually “stake” their NFT to a third-party platform, such as the D.E.B.T. platform, in order to receive reward distributions.

In a nutshell; purchase DEBT tokens (another centrally controlled cryptocurrency), use DEBT tokens to invest in $25 NFT positions, stake NFTs (park them with Debt Box), get paid passive rewards.

DEBT tokens are leftover from a previous Debt Box investment scheme, tied to various fictional revenue generating ruses (as alleged by the SEC).

Passive rewards are paid in IN8, which is generated on demand (up to 888 million). All of this is coordinated through a smart-contract, owned and set up by Debt Box.

Cashing out IN8 occurs through Debt Box. The only identified sources of funding are

a portion of the corporate revenue from lifestyle products, mentorship programs, and other services provided by iX.

After the SEC filed suit in August iX Global tried to reboot as an education platform. That flopped hence the NFT investment scheme grift.

Part of iX Global’s “services” includes selling $25 NFTs. 200,000 NFTs sold for $25 comes to a quick $5 million.

Oh and IN8 NFT investors are also slugged with all sorts of hefty fees:

  • 10% passive rewards fee
  • 10% transaction fee
  • $1 withdrawal fee
  • “additional fees may apply”

Beyond that there doesn’t seem to be a plan to allow investors to keep cashing out.

There is a plan to launch an endless parade of NFT investment schemes however – and this is tied to existing DEBT token bagholders;

By staking DEBT token, users will be rewarded an opportunity to receive free NFTs from each upcoming Version 2 project.

Each wallet can stake up to 5 DEBT tokens*. When a wallet stakes a DEBT token, that wallet is eligible to receive one free NFT per future project per DEBT token staked (for example: 3 DEBT tokens staked = 3 free NFTs from all future projects while staked and while supplies last).

All NFTs must be minted (for a fee) and staked to receive reward distributions.

Seemingly aware it is violating US securities law, the IN8 NFT investment scheme whitepaper states;

DEBT token staking is not ROI staking.

NFT owners are NOT making an investment into iX Ventures, the IN8 project, third-party partners, affiliates, or parents.

As explained above, this is clearly nonsense. Calling a passive return a “reward” doesn’t change what  it is.

Specifically, with respect to US securities law, we can apply the Howey Test to iX Global’s IN8 NFT investment scheme.

The U.S. Supreme Court’s Howey case and subsequent case law have found that an “investment contract” exists when there is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.

With respect to iX Global’s IN8 NFT investment scheme:

  1. a $25 investment is required to obtain an NFT investment position
  2. the $25 investment is made into Debt Box (through iX Global), both of which constitute common enterprises
  3. the only reason anyone would invest into an IN8 NFT investment position is the advertised “IN8 Rewards Program”
  4. rewards paid out through the IN8 Rewards Program are passive in nature and derived via the efforts of Debt Box and iX Global (“others”).

As you can see, iX Global’s IN8 investment positions satisfy every prong of the Howey Test.

Like the passive returns forex scheme before it, once again iX Global and Debt Box are violating US securities law.

As it stands the SEC intends voluntarily dismiss the $110 million securities fraud case it brought against iX Global and Debt Box.

This is due to original attorneys handling the case mixing up some dates when applying for a TRO. It has nothing to do with iX Global’s and Debt Box’s alleged securities fraud.

With a new group of “experienced trial attorneys” assigned the case, it’s expected the SEC will refile at some point. Aligning with ongoing parallel criminal proceedings in India, the DOJ might also file criminal charges.

Whether iX Global’s new IN8 NFT investment scheme factors into a refiled lawsuit or criminal charges, remains to be seen.