Defily fails to provide ownership or executive information on its website.

Defily’s website domain (“defily.ai”), was registered in January 2024. The private registration was last updated on April 2nd, 2025.

Over on Defily’s official YouTube channel we find marketing videos featuring Parwiz Daud:

Daud is a serial MLM crypto Ponzi fraudster dating back to OneCoin. Daud’s last Ponzi, prior to Defily, was Validus.

Daud launched Validus back in 2021 with fellow OneCoin scammer Mansour Tawafi.

Following regulatory fraud warnings from New Zealand, Australia and Belgium, Validus collapsed in April 2023.

Dubai eventually issued a belated Validus securities fraud warning in December 2023.

Mansour Tawafi launched Odecent, an unregistered MLM trading bot scheme,  in mid to late 2024. Daud seems to have prelaunched Defily around the same time.

Daud, who fled the UK as OneCoin took off, is still hiding out in Dubai. And it is from Dubai that Defily is run.

Due to the proliferation of scams and failure to enforce securities fraud regulation, BehindMLM ranks Dubai as the MLM crime capital of the world.

BehindMLM’s guidelines for Dubai are:

  1. If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
  2. If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.

If you want to know specifically how this applies to Defily, read on for a full review.

Defily’s Products

Defily has no retailable products or services.

Affiliates are only able to market Defily affiliate membership itself.

Defily’s Compensation Plan

Defily affiliates invest USD equivalents in cryptocurrency:

  • Basic – pay a $100 fee to invest $100 to $1000 for 1 year
  • Essential – pay a $250 fee to invest $100 to $2500 for 1 year
  • Premium – pay a $500 fee to invest $100 to $5000 for 1 year
  • Pro – pay a $1000 fee to invest $100 to $15,000 for 1 year
  • Ultimate – pay a $5000 fee to invest $100 to $100,000 for 2 years
  • Max – pay a $10,000 fee to invest $100 to $1,000,000 for 3 years

This is done on the promise of a passive return, purportedly generated via an AI trading bot.

Defily also offers “pay as you go” plans (1 year) with 5% to 10% fees (calculated on received returns).

The MLM side of Defily pays on affiliate investor recruitment.

Defily Affiliate Ranks

There are eight affiliate ranks within Defily’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. Jade – pay for and maintain access to Defily’s investment scheme, and generate $2000 in investment access fees on both sides of the binary team
  2. Sapphire – maintain access to Defily’s investment scheme and generate $6000 in investment access fees on both sides of the binary team
  3. Ruby – pay for Essential tier or higher access to Defily’s investment scheme, and generate $20,000 in investment access fees on both sides of the binary team
  4. Emerald – pay for Premium tier or higher access to Defily’s investment scheme, have a Sapphire or higher on both sides of the binary team and generate $60,000 in investment access fees on both sides of the binary team
  5. Diamond – pay for Pro tier or higher access to Defily’s investment scheme, have an Emerald or higher on both sides of the binary team and generate $200,000 in investment access fees on both sides of the binary team
  6. Blue Diamond – pay for Ultimate tier or higher access to Defily’s investment scheme, have three Diamonds across your binary team (split 2:1 or 1:2), and generate $600,000 in investment access fees on both sides of the binary team
  7. Black Diamond – pay for Max tier access to Defily’s investment scheme, have three Blue Diamonds across your binary team (split 2:1 or 1:2), and generate $2,000,000 in investment access fees on both sides of the binary team
  8. Crown Diamond – maintain Max tier access to Defily’s investment scheme, have four Black Diamonds across your binary team (split 2:2), and generate $6,000,000 in investment access fees on both sides of the binary team

Referral Commissions

  • Defily affiliates earn $15 per affiliate they recruit
  • 20% is paid on investment access fees paid by personally recruited affiliates
  • 20% is paid on performance fees paid by personally recruited affiliates (“pay as you go” plans)

Startup Bonus

If a Defily affiliate recruits ten affiliates who invest at the same or a higher tier than them, their investment access fee is refunded ($100 at Basic to $10,000 at Max).

Residual Commissions

Defily pays residual commissions via a binary compensation structure.

A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):

The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).

Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.

Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.

At the end of each week Defily tallies up new investment access and performance fees paid across the binary team. Residual commissions are paid as 10% of this amount.

Once paid out on, volume is matched against the stronger binary team side and flushed. Leftover volume on the stronger binary team side carries over.

Leadership Bonus

The Leadership Bonus is a bonus on investment access fees generated on the weaker binary team side each week.

The Leadership Bonus is paid out on up to two generations per recruitment leg:

  • Blue Diamonds earn a 1% Leadership Bonus on one generation
  • Black Diamonds earn a 2% Leadership Bonus on the first generation and 1% on the second
  • Crown Diamonds earn a 3% Leadership Bonus on the first generation and 1% on the second

A generation appears to be defined when an equal or higher ranked affiliate is found in a recruitment leg (this affiliate caps off the generation).

Rank Achievement Bonuses

Defily rewards affiliates for qualifying at Jade and higher with the following one-time Rank Achievement Bonuses:

  • qualify at Jade and receive $100
  • qualify at Sapphire and receive an Apple Watch
  • qualify at Ruby and receive an iPhone 16 Pro Max
  • qualify at Emerald and receive a MacBook Pro
  • qualify at Diamond and receive a “Diamond Retreat”
  • qualify at Blue Diamond and receive a Rolex watch plus undisclosed bonus residual commission rate
  • qualify at Black Diamond and receive a BMW Gran Coup plus undisclosed bonus residual commission rate
  • qualify at Crown Diamond and receive a Tesla Cybertruck plus undisclosed bonus residual commission rate

Joining Defily

Defily affiliate membership is $30.

An additional $100 to $10,000 fee plus additional investment is required for full participation in the attached income opportunity.

Transactions within Validus are made in various cryptocurrencies..

Defily Conclusion

Not surprisingly, anything Parwiz Daud and Mansour Tawafi launch is bogged down by Validus investor losses:

The bad news is Defily is just more the same fraud Daud ran with Validus.

Validus’ Ponzi ruse was “forex trading”:

Defily’s Ponzi ruse is AI bot trading:

The long and the short of it is if trading was taking place, Daud would just run Defily’s purported bot for himself.

On the regulatory front, like Validus, Defily’s passive returns investment scheme constitutes a securities offering.

Defily fails to provide evidence it has registered to offer securities in any jurisdiction. This means that at a minimum, Defily is committing securities fraud.

Again, like Validus, the reason Defily commits securities fraud is because its a Ponzi scheme. There was no profitable trading in Validus and there is no profitable trading taking place in Defily.

Likely the primary reason we haven’t seen Defily fraud warnings yet, is because Defily’s launch has been an utter failure. As of April 2025 Defily’s website traffic is too low for SimilarWeb to track.

In addition to securities fraud, Defily operates as a pyramid scheme. This begins by forcing affiliates to pay for investment access to qualify for commissions.

From there all MLM commissions paid out by Defily are tied to spending by recruited affiliates.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Defily of ROI revenue, eventually prompting a collapse.

Math guarantees that when a Ponzi scheme collapses, the majority of participants lose money.

We’ve already seen this happen with AuLives (Daud’s and Tawafi’s bridge Ponzi between OneCoin and Validus) and Validus. It will happen again when Defily inevitably collapses.