Turkish regulator finds Kairos Technologies is a pyramid scheme
Back in July the Turkish Customs and Trade Ministry launched an investigation into Kairos Technologies.
The aim of the investigation was to establish whether or not Kairos Technologies was a pyramid scheme.
As with most countries, the operation and promotion of pyramid schemes is illegal.
In a press-release issued yesterday, the Customs and Trade Ministry announced the results of their investigation.
As per the Customs and Trade Ministry’s findings, in Kairos Technologies’ compensation plan
the reward for bringing new members to the system is kept at a higher level than rental income, and members are indirectly encouraged to gain new members to the system rather than to obtain rental income from the product packages they buy.
For those unfamiliar with Kairos Technologies’ business model, the company combines affiliate recruitment with a Ponzi investment (the cloud services side of the business).
As per Turkish law;
A typical pyramid system is formed as a system of expectation of earnings which is very difficult to realize due to the fact that the income of those who get more, the income of the members of the lower arms of the system is transferred to the members at the upper levels of the system.
Pyramid scheme regulation is a criminal matter in Turkey, with the Customs and Trade Ministry press-release suggesting the matter has been forwarded to the Public Prosecutor’s Office.
As it stands, promotion of Kairos Technologies in Turkey is illegal and those found to be doing so are at risk of criminal prosecution.
At the time of publication, Alexa estimate that Turkey is the largest source of traffic to the Kairos Technologies website (26%).
On top of the ban in Turkey, last week Austria’s FMA issued a warning against a shell company Kairos Technologies was using to pay affiliates with.
Every day a new “ICO” – of course now from the scammers of Kairosplanet:
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Thanks for the heads up.
K ICO doesn’t seem to have gone anywhere. Hopefully their investors didn’t fall for it.