Magellan International confirms securities fraud by pulling out of US
In recent communication sent out to its investors, Magellan International Alliances has announced it is pulling out of the US.
The announcement also serves as confirmation Magellan are engaged in securities fraud.
Magellan International Alliances began as CGI Limited on around February 2018.
The company initially planned to illegally offer crypto gambling services in the US through its BetChip altcoin and Coinsinos casino.
By April Coinsinos had been dropped and CGI Limited renamed to CGI Global.
Magellan International Alliances surfaced in August, as a new vehicle for CGI Global to push its BetChip altcoin through.
On the corporate side of things Magellan International is set up as a Irish shell company. CEO Jef Welch however is based out of Georgia in the US.
With all that in mind, here’s Magellan International’s latest announcement;
Magellan Intl. Alliances, Ltd., is not doing business in the U.S.A., or any of it’s territories. [sic]
Any accounts confirmed as set to U.S.A. in their profile, will be disabled, The positions are not being terminated (disabled only).
*All IP addresses in the U.S.A. will be restricted soon from logging in.
The announcement also details withdrawal delays, supposedly owing to “programming updates”.
What Magellan International will do with funds invested by US affiliates is unclear. No reason for pulling out of the US is provided, however it’s pretty easy to read between the lines.
Neither cryptocurrency or e-commerce is illegal in the US. In order to legally offer a ROI through cryptocurrency, as Magellan International does, a company must register its securities offering with the SEC.
This requires full public disclosure to both US regulators and the general public. Through these regulators filings, potential investors would be able to verify whether Magellan International are doing what they say they are.
So what’s the problem?
The only verifiable source of revenue entering Magellan International is new investment. Using new investment to pay existing investors would make it a Ponzi scheme, which as far as the SEC are concerned is securities fraud.
That’s not to say Magellan International isn’t operating illegally elsewhere in the world, just that regulation of MLM securities fraud isn’t as diligent as it is in the US.
Meanwhile what Magellan International will do with invested funds from the US is unclear. Whether “disabling” a US investor account means they will no longer receive ROI payments is unclear.
At the time of publication Alexa cite the US as the only significant source of traffic to the Magellan International Alliances website (~81%).
Magellan International’s affiliate back-office is a little more varied, with the US still the largest source of traffic but only making up 37%. The four next largest sources of traffic are all African countries (Nigeria, Cameroon, Tanzania and Ghana).
MLM cryptocurrency companies targeting African investors has emerged as a disturbing trend over the past 12 to 18 months.
Typically when an MLM company confirms it’s a scam by pulling out of the US, US investors get around the block by either using fake addresses or offshore PO Boxes and virtual addresses.
With the overwhelming majority of new investment coming from the US, you’d be pretty naive to believe Magellan International are just going to cut off American investors overnight.
*winkwink nudgenudge* Pseudo-compliance and awaaaaay we go!
Oz, one of the things you need to stress (and it’s something I haven’t seen you mention in reviews of any of the MLM programs promoting the buying and selling of a crypto-currency, its initial coin offering, or bitcoin mining, or trading) is that in addition to the company having to register their offering as a “security in every country they claim to operate in (failure to do automatically classifies the program as a ponzi/pyramid scheme in the eyes of regulators), which I have seen you mention, is that ALL their reps would also be required to possess a securities license.
And should the company get hit with violating securities laws and/or ponzi/pyramid scheme statutes, that individual reps would also be subject to being charged with violating securities laws for promoting investments and/or a security without a securities license, as well as ponzi/pyramid scheme statutes, both of which involve big fines in addition to jail/prison time.
Not to mention if they were considered a top “net winner” by the Receiver, they are subject to being hit with a “clawback” notice and forced to return all that money they were running around bragging about earning!
Thanks for the feedback. I don’t recall a serial unregistered securities promoter in the US being having criminal charged filed or convicted (unfortunately), so I don’t really mention it.
It’s typically the SEC that handles net-winner cases and even then who they go after is extremely limited (and civil in nature).
Clawbacks get mentioned once a Receiver is appointed.
I still haven’t received an answer on what is going to happen to my investment in as you can’t do business in the US. I think should at least get a answer or return my investment. Alan. Kahler
Unless something VERY unexpected happens. Your $ is gone. You will never see a penny of it.
We keep hearing, were getting our original investment money back when it matures,after a year. However I’ve yet to see what penny returned.
My accountant got me involved,and I told him straight up that were gonna get beat out of our money. We just invested a few thousand, but we have a friend that put in a Million dollars. And he really is upset.
We’ll see what happens, but I’m pretty sure I know the answer. I don’t see a happy ending coming.
Jeff Welch is always saying how fantastic, incredible, just super about how things are going, and we never see a dime. Classic Scammer.
I don’t see how he can do this, and live in Georgia-very long.
I have been following the various companies that pushed betchip from early on. I am curious, has anyone actually received a refund as promised?