The QZ Asset Management Ponzi scheme has collapsed.

Withdrawals were disabled on or around May 1st, under the ruse of an “SEC audit” exit-scam.

CEO Blake Yeung Pu Lei informed investors withdrawals were delayed in a May 1st “weekly update”.

We are now at the last phase of financial auditing by SEC which will take between 6 to 8 weeks to complete.

And of course, QZ Asset Management withdrawals are disabled during this time.

Therefore, there will be some inconvenience and disruption to our operations.

Once this auditing is done, we can then resume back to norm and business as usual.

Yeung goes on to blabber about “adhering to strict SEC requirements”…

…which is amusing seeing as QZ Asset Management has been committing securities fraud in the US and elsewhere in the world since launch.

Launched in late 2022, QZ Asset Management is a simple 400% ROI MLM crypto Ponzi scheme.

Preparations for QZ Asset Management’s exit-scam began in February, through a misinformation riddled S-1 Registration Statement filed with the SEC.

One example is QZ Asset Management claiming to have “approximately $8.4 billion in assets”. Through it’s MLM opportunity, QZ Asset Management pitches up to 3.5% a week.

3.5% of $8.4 billion is $280 million. If that money actually existed QZ Asset Management obviously doesn’t need your money. There’s also no need for Blake Yeung to be stringing investors along with marketing update videos from his basement.

That said, filing anything with the SEC is a bit of effort to go to for an exit-scam. Much easier to just disappear.

On the flip side, if you just disable withdrawals and do a runner, you don’t get “6 to 8 weeks” to create distance between you and your victims.

Getting back to Yeung’s exit-scam video; First and foremost, the SEC doesn’t audit companies. Registered companies hire third-party auditors, who then put together periodic financial statements that are filed.

QZ Asset Management have failed to make any financial filings. In fact, QZ Asset Management hasn’t made any additional SEC filings beyond its first February filing.

QZ Asset Management doesn’t have a third-party financial auditor because obvious Ponzi is obvious.

Typically we don’t see Ponzi scammers tempt the SEC but when you’re running a scam targeting Africa from Hong Kong, with an easy backdoor to mainland China, you’re probably not too worried about US authorities coming after you.

In the wake of Yeung’s “withdrawals are disabled” announcement, promoters are circulating a request to complete a W-8BEN tax form.

I don’t know if this is an official communication through QZ Asset Management or promoters trying to harvest data.

 

Update 4th May 2023 – QZ Asset Management is sending out W8-BEN forms through its backoffice.

Investors are being told if they don’t return the completed forms, QZ Asset Management will deduct 30% from their backoffice funds. /end update

 

A W8-BEN tax form is an IRS filing for non-US residents, used to declare non-US sources of income.

For the vast majority of QZ Asset Management investors, who have no ties to the US and aren’t filing US tax returns, this is smoke and mirrors.

What I suspect is happening is W8-BEN forms are being used to confirm investor details, once the forms are returned to QZ Asset Management (or promoters making the request).

Once confirmed, details of QZ Asset Management’s most gullible investors will likely be sold on.

Presently SimilarWeb tracks top sources of QZ Asset Management website traffic as South Africa (72%), the Philippines (8%), Namibia (5%) and Botswana (3%).

South African authorities can’t get on top of a $1.7 billion Ponzi scheme being run by South Africans, so don’t expect too much from them.

Back in February Indonesian authorities confirmed QZ Asset Management was operating illegally, quickly killing off recruitment there.

Pending QZ Asset Management completing its exit-scam sometime in June or July (“bad new guys, the SEC said we didn’t pass the audit. Oh well… bye!”, total QZ Asset Management victim numbers and how much they’ve lost remains unknown.

 

Update 25th May 2023 – QZ Asset Management’s exit-scam is complete. The Ponzi scheme pulled its website offline on May 24th.