Nui launches kala cloud mining despite securities fraud cease & desist
It’s pretty established now that MLM cryptocurrency cloud mining opportunities are a security.
Which makes Nui’s new kala mining offering all the more unbelievable.
Nui announced their new kala mining opportunity in a November 29th blog post;
If you missed the pre-sale of Kala last winter, your only chance to mine has been through the purchase of a Kala Mining Rig.
Starting today, that’s about to change, with the introduction of the Kala Mining Product Line!
Nui are offering two ways for affiliates to acquire kala; cloud mining and/or the purchase of mining hardware.
The cloud mining sees Nui affiliates invest in either “Gigahash” or “Terahash” contracts.
All you’ll have to do is pay a monthly service fee, and watch your Kala coins build up.
Gigahash contracts start at $50 with an additional $15 a month fee. There’s also a $100 contract ($30 monthly fee), $500 contract ($42 monthly fee) and $1000 contract ($57 monthly fee).
Terahash contracts cost $4000 plus a $115 monthly fee.
On the MLM side of things the Gigahash contracts pay a direct referral commissions and unilevel team commissions (10 levels).
Note that both the initial investment and ongoing monthly fee are commissionable.
For the Terahash contract, only the initial investment is commissionable (direct commission plus ten level unilevel).
Kala mining rigs are being flogged for $4000 and also pay direct and residual commissions.
As it stands kala is not publicly tradeable. It has no value outside of Nui and is only exchangeable for actual money via Nui’s internal exchange.
What makes Nui’s kala mining offering remarkable, and not in a good way, is the fact the company is already under investigation for securities fraud.
Back in July Nui was served a securities fraud cease and desist by the state of Texas.
In additional to CEO Darren Olayan claiming securities regulation didn’t exist, Nui vowed to “vigorously defend” allegations in the cease and desist notice.
Periodic updates from Olayan on social media suggest there is an ongoing dialogue between Nui and the Securities Board. We haven’t had any official updates however since the initial notice was issued four months ago.
Here’s the thing though, to the best of my knowledge Nui still isn’t registered to offer securities in Texas.
In fact the company isn’t registered to offer securities anywhere in the US. Neither Nui or Darren Olayan appear on the SEC’s Edgar database.
Meaning from the outset, Nui’s passive kala mining opportunity is an illegal unregistered securities offering.
Pending a response from the Texas Securities Board (or SEC), stay tuned…
This situation will end up in one of two ways.
Either Darren Olayan will win an unprecedented, unforeseeable and utterly unbelievable victory over the Texas State Securities Board.
OR, he should be remembered as someone who stole many thousands of dollars from the affiliates who trusted him after the July 11th Cease and Desist order proved that he was lying his ass off about having the vaguest understanding of what “Compliance” with securities regulations really means.
Almost all the changes and additions to the Nui/Mintage/Kala offering after July 11th has been designed to drain affiliates pockets, again and again, while Nui dragged out their legal process.
Fresh $500 investments (or reinvestments) to buy a $30 AntRouter. It’s for “compliance,” but if you don’t buy one you can’t compound your Hashrate investments
The hardware Nui sells for $4K as a Kala Rig can be bought through Amazon, from the manufacturer for $200.
A new “Premiere” affiliate level was created with a $6K buy in (I believe they’ve changed that somewhat) but if you weren’t “Premiere” you couldn’t invest in the ServerX offering.
ServerX is a couldmining investment which pays off in garbage alt coins other than Kala.
“CompChain” is another cluster fudge. Your MLM genealogy hermetically sealed inside a blockchain. No one can ever take that away from you, build one dowline and keep it for life.
Of course pert near no other MLM company will honor your Compchain linage so it’s nothing but a daisy chain circle jerk but it’s a daisy chain circle jerk with a comp plan.
For $100 you can buy your “block,” they don’t like to call it your position in the comp plan but that’s exactly what it is.
For $1.2 to 1.5K you can purchase your “Node” which opens up more compensation options.
Both Blocks and Nodes are of no use what so ever to anyone outside of the compensation structure and therefore should not be commissionable but of course they are, perhaps for “compliance.”
The new Kala investment options are thoroughly centralized, give fiat or BTC to Nui without receiving any hardware and you get monthly rewards of Kala, which completely contradicts last summer’s “compliance” initiative who’s buzz word was “decentralization.”
The current “Cyber Week” promotion amps up commissions for the sale of Kala investment contracts. Darren Olayan’s wisdom with securities compliance once again is on further display.
If he ever read July’s C&D he’d know how many ways implying that Kala will appreciate in real world (as opposed to in house) value and why that, in and of itself, violates several securities laws.
So either Darren Olayan will pull the biggest rabbit out of the smallest hat in US securities history or he will earn his spot in the MLM scumbag hall of shame.
What a cute write up. If you think its impossible to win against the SEC, why dont you check the recent court ruling that they lost against the blockvest ico? They also lost against Genesis Mining. And if this case with nui was so easy to win, they would have won already.
Nui also just received an $40 Million Investment from the publicly traded company PRTT (Protect Pharmaceutical Corp)…would they invest in a scam? Doubt it.
So after MONTHS of talking to the SEC they keep following their path, would they do so if they think they lose against them? Doubt it.
Not getting an injunction is not the same as losing a case. I’m not tracking the case (non-MLM) so I can’t say why the injunction was denied.
It’s a moot point in any case because it’s completely offtopic.
Nui hasn’t been sued by the SEC, they were issued a cease and desist as part of a Texas Securities Board investigation.
The SEC never sued Genesis Mining.
What case? Nui was issued a cease and desist, which they have the right to challenge.
We haven’t heard anything further since the cease and desist notice was issued, so pretending you have any knowledge of the dialogue between Nui and the TSB is deceptive.
Do you know anything about PRTT or the particulars of the alleged investment? Yeah I’ve seen the press-release. It’s marketing bullshit and extremely light on specifics.
Random pharmaceutical company drops $40 mill on an MLM company under investigation for securities fraud? Yeah no worries, totes legit.
Stupider things have happened. Welcome to the MLM cryptocurrency niche.
Out of curiosity I went and looked up the Blockvest ruling. It didn’t even make it to ICO, it was some pre-ICO token bullshit that the SEC shut down because the company fraudulently represented the SEC signed off on it.
Had it of been open to the public the SEC would have got their injunction. As it stands all Blockvest were able to do was pre-position their family and friends. They weren’t able to follow through and steal from gullible bagholders.
Good on the SEC for shutting it down before Blockvest had the chance to scam people.
wait………a scam claiming something that isn’t true isn’t a scam? lmao!
Tell me which of these statements is true about Kala:
~The investment of money (or BTC),
~Into a common enterprise (Nui/Mintage),
~With the expectation of profit,
~The expected profits being derived almost exclusively through the efforts of others.
I see all four being true which is in fact the problem.
It doesn’t matter to securities regulators if you’re talking about stock shares, crypto or talking about orange groves, if the above four statements are true about an offering, it is a security.
And if it is a security it needs to be registered with the proper authorities, or it’s illegal. Plain and simple.
THAT is what Nui needs to prove isn’t true and why I believe Nui is dragging out their hearings as long as they possibly can.
I think it was the keystone call two weeks ago when Casey Combden (who knows a thing or two about being investigated by local securities regulators) gave us the last “Texas Update” and what did he say?
He said that Nui has responded Texas State Securities Board. THAT was an update? By law they needed to respond by August 11th (unless they asked for a continuance which I’ll bet you they did).
It wouldn’t have sounded much like a breaking update if Casey had said “Nui responded to the Texas C&D about three months ago and mums the word on anything since.” But make no mistake, by implication that is exactly what he said.
Not quite living up to their “fully transparent and easily accessible” mantra are they? But you can rest assured there is a good reason for that.
Like how much did they net from their $500 (investment or reinvestment) for a $30 Antrouter sales?
Kala was specifically mentioned in the C&D but they couldn’t put sales on hold before they sold more $200 Antminer rigs (and now cloud contracts) for $4000. This alone is proof they aren’t following their attorneys advice.
I still hold that either Nui is going to pull the world’s largest rabbit out of the world’s smallest hat or Darren Olayan and his crew deserve to become pariahs in this industry.
One thing here, PRTT is only a shell company that will change it’s name early next year. The name to follow here is Una J. Taylor.
I get headaches reading through EDGAR filings for stinky pinkie shell swaps but from my very incomplete research into Ms. Una she appears to have a lot of imaginary business experience that sounds quite impressive but verification is hard to come by.
She uses defunct business entities (Renewable Energy Supplies LLC for one example) to pad her resume to the SEC knowing full well they could rend that veil anytime the took an interest in doing so. Which makes me suspect that they aren’t the people she’s trying to fool.
Another one of Una and PRTT’s press releases from last month is sorta interesting:
Tobit clicks looks very much like (yet another) adcredit/alt coin MLM. I suspect Una has soaked up one too many “multiple steams of income” sales pitch.
That’s a pretty impressive investment from a company with a $39.2 million total market cap.
yeah. I was laughing at the bloviating in the ‘press releases’ (self aggrandizing press releases = always funny) instead of explaining what these acquisitions really mean.
A company that’s enjoying a -0.005 Earnings per share (i.e. losing money), with a market cap of only 39.2 million, is willing to invest in some no-name company for $40 million?
Not impossible, given PRTT also bought a “blockchain powered traffic exchange” in October called TobitClicks (undisclosed amount), but did you read ALL of the press releases?
September 14: PRTT buys into Tobit (something)
October 2: PRTT joins Tobit “Consortium”
October 20: PRTT buys TobitClicks
November 27: PRTT will invest $40 mil in IMD (how is this related to NUI?)
November 28: PRTT bought Winner’s Circle, some marketing company headed by an inspirational speaker.
Nui et al are an interlocking group of companies. The Texas C&D listed five of them. Nui has stated that International Membership Data, LLC (IMD) is something of a holding company on top of their previously announced scad of company names.
Nothing like a list of shell companies to hide money, just ask the product supplier suing LuLaRoe.
A new data point: imgur.com/a/Cmvjwrq
That is the kala yield chart for Nui’s new “giga hash” investment contract. They’ve finally gotten smart enough not to use terms like ROI in their official communications but they are promising a fixed multiple of return on USD investments denominate in kala.
Granted the value of kala is a variable but no where in any of their publications do they ever admit that kala might drop below it’s current artificially set value of two cents per coin.
I seem to recall that this exact issue is part of the Texas C&D:
Nui DID hire high end legal representation, it’s a shame they aren’t following that advice.
I just want to throw an idea out there, if anyone from Nui/Mintage wanders by and actually wishes to honor the companies commitment to transparency, perhaps they could weigh in.
What % of Kala coins are premined?
* According to the Kala White Paper (such as it is):
Three Billion of the 21 billion total Kala coins were reserved for the ICO and also for payments made from their “Core” application.
*Core (and “Reach”) are the last vestiges of the prefailed Divee opportunity. Core being the “get paid to” app, take surveys, watch videos ect. for a pittance, that pittance could be used to buy products on the ecommerce site Reach.
Nui simply changed that to “get paid to” and get paid in points which can be converted to Kala. So we see you can get Kala without mining Kala.
*The AntRouter R3-LTC, which I ~think~ is no longer a required product purchase, mines, as it’s name implies, Light Coin. This was part of last summer’s compliance dog and pony show.
But it was confirmed that the miner sent a thin small stream of LTC to Nui and Nui sent back Kala in return. But again, the antrouter did not in fact mine Kala. So, were the Kala given to router owners part of that three billion premined coins?
*Next up, the Antminer V9 4Th “Kala Rig.”
These too seem to be phasing out in favor of the 4Th cloud miner offering and it’s a good thing too. Nui was (is) selling a now $200 miner and power supply for $4000 but I suspect the secret of the cloud deal is really just to save Nui $200 plus shipping.
What do I mean?
There is no publicly available proof that Kala rigs mine Kala. Bitmain sells (or sold)the Antminer V9 with options to mine BTC, BCH or Acoin. This isn’t to say the rig can not be converted to mine other alt coins but again, For Nui’s purposes it isn’t imperative that the rig does so.
Nui ~could~ let the rigs mine BTC and just transfer premined Kala back to the rig owners and pocket the tiny amounts of BTC for themselves.
*IF that is true and this is only my speculation at the moment but IF that were true why would they need to purchase outdated rigs for internal mining purposes?
What could stop them (and how would we know) if the new 4Th cloud contracts didn’t use a router at all? They could pocket the $4K upfront (minus commissions of course), charge $115/month maintenance and just slide premined Kala into people’s wallets?
I don’t believe there is a technical or integrity issue that would prevent them from doing so. After all they’ve been selling hundreds of thousands of dollars worth of investments even after the Texas State Securities Board accused them of selling investments.
Again, if Darren or anyone else at Nui cares to address these questions you have my thanks in advance.
More Smoke, New Mirrors:
That PR doesn’t mention Nui or Compchain but Nui is waving that article around as if it’s some form of validation.
Erick Mosteller is not a very public person to be slated to head up a $250 million fund licensed in Luxembourg and not licensed in the US. FINRA has never heard of him so despite him living in Utah he has zero credentials and holds no license to perform any type of finical services in his home country.
But I do suspect he can hook you up with vacation time shares:
ViolaLux, where to start. There are no fewer than two ViolaLux related companies registered in Luxembourg.
Viola S.à r.l. which is currently listed as inactive but from what little I’ve been able to find online:
As you can see above S.a.r.l. is related to ViolaLux SICAV-SIF:
ViolaLux SICAV-SIF in turn has two funded entities in Luxembourg:
Violalux SICAV Global Equity Mngt
And Violalux SICAV Global Equity A EUR Cap
I may sound a bit churlish in saying this but I think the odds are that these entities exist only on paper are greater than them commanding five billion in assets as the PRTT PR claims.
Last weeks pretense that PRTT was pouring $40 million into Nui’s parent company was only about as effective as a tiny cup of espresso to the tranquilized rhinoceros that is the affiliate base. Maybe a $250 million dollar investment (not in Nui) will ramp the buzz level up a bit.
Not being a woman of riches should not keep a wise woman from understanding that this and all affiliates with “Daryl’s” name attached has not advanced anywhere but undercover to what was suppose to “LAUNCH” years ago.
Nul, Symitrei,Mintage Mining, and others, which can be remembered by investors, were told at meetings that “Soon the launching of The cyrtocurrency “Kala” will bring in Bitcoin (plus a fee of $125.00 for Mintage Mining and rig purchase of $4000.00) and catch the highest percentage rate, which went from 2% to %1.
Now, as I was only a bystander to this organized jargon, I became skeptical although my other half was convinced by the smooth orientation given by the speaker to invest. The good part is that the investment only BURNED us for $175.00.
As the months parished without any word or any $$ from company, I began reading that “We” weren’t the only suckers… The Company of names mentioned above involved themselves in the Texas Affiar!
After, the cash money that was given had diminished to “They don’t know what happened with our investment. Following this we attended Nui’s weekly meeting, aproached speaker, (which was charming like) inviting a “Discounted Air Far and Travel Company for us to invest in.
Why in the world would we even care? I knew then that the $$ we put in would never be seen again. The speaker which I’d not mention offered Kala Coin for the $$. A coin that still to this day is not worth a penny in US currency, only a Bitcoin made up.
Please be very careful investing in these types of organization s. If it sounds to good to be true, as I know it is, don’t feed the kitty.
It’s a shame, what ever happened to earning a honest dollar?
The days will finally arrived,kala will hit an exchange on may 5th. The exchange is probit.
Also nui is now own at 100% by appliqate, a public traded company.
So it’s a race to the bottom through a public exchange exit-scam then. Sorry for your loss.
We recently covered why this doesn’t mean anything here – https://behindmlm.com/mlm-reviews/nui-served-securities-fraud-cd-in-montana-last-sep/
So I’ve got a friend who is in for a significant amount investing in what he was told were “contracts” for Kala, I’m somewhat familiar but he was more or less ignorant of what he was getting into.
Anyone care to explain what old boy was actually offering in these contracts?
I’ve haven’t seen my friends contract yet but what he explained left me scratching my head.
Basically the same old failed shitcoin pump and dump story. Nui changed the narrative so many times it’s hard to keep up.
Invest in Kala, moon lambo, cash out. Never happened and the shitcoin has long since been abandoned.
Going by memory before Kala did it’s nosedive on the exchange, there were two preferred ways of investing in Kala. One was to buy disgustingly overpriced mining hardware and plug it in at home, the second was to invest in mining contracts.
With a contract you’d more or less rent mining hardware which would be housed by NUI and you would pay a monthly fee for electricity and support.
In either case you would be mining Kala which has proven to be near worthless so you lost your investment no matter which option you chose.
I’m in a few NUI International fb groups and it’s mostly tumbleweeds but now and again some enthusiastic sucker posts about Kala so some pimps are still seem to be flogging it.