Peru issues Pay Diamond, OneCoin, CoinSpace & MMM Global warning
Peru has grouped some of the top MLM Ponzi schemes doing the rounds and issued a collective consumer warning.
The warning was issued on September 9th by Superintendencia De Banca, Seguros & AFP (SBS), Peru’s top financial regulator.
MLM companies named in SBS’ warning include Pay Diamond, OneCoin, CoinSpace and MMM Global (MMM Peru).
The business models of the four companies see them each solicit investment and use newly invested funds to pay off existing investors.
The business models also reward affiliate investors for recruiting new investors, combining both pyramid and Ponzi fraud.
Pay Diamond affiliates invest up to $36,000 on the promise of weekly ROI payments of up to $1800 for 50 weeks.
OneCoin affiliates invest €110 to €27 500 (and more) on OneCoin Ponzi points.
The company sets the value of the points invested in and, up until eight months ago, used newly invested funds to pay ROI withdrawal requests.
CoinSpace is a clone of OneCoin’s Ponzi points model, with investment in S-Coin points capping out at €12,000 EUR.
MMM Peru is part of the MMM Global Ponzi family. Affiliates invest bitcoin on the promise of a 50% monthly ROI, paid with subsequently invested funds.
The general population is called upon to inform themselves adequately and to take the necessary precautions when deciding where to deposit, save or invest their money.
The SBS warn that none of the MLM Ponzi schemes named are authorized to solicit investment in Peru.
Whether further action is taken against local promoters of the scams remains to be seen.