AladdinBOT Review: AI trading bot ruse Ponzi scheme
AladdinBOT fails to provide ownership or executive information on its website.
AladdinBOT’s website domain (“aladdinbot.io”), was privately registered on September 9th, 2023.
In an attempt to appear legitimate, AladdinBOT provides a UK company registration certificate for “Aladdinbot Limited”.
As per AladdinBOT’s website FAQ;
Which deposit methods do you accept?
ETHEREUM, BITCOIN, BNB(BSC), USDT (TRC20, ERC20 AND BEP20)
It should be noted that the FCA banned MLM cryptocurrency investment schemes on October 8th, 2023. This means that, such to the extent AladdinBOT has any actual ties to the UK, the company is operating illegally.
As opposed to the UK, AladdinBOT marketing material suggests ties to Dubai;
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:
- If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
- If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.
To get to the bottom of who’s running AladdinBOT, we turn to YouTube.
In a marketing video uploaded to AladdinBOT’s official YouTube channel on November 11th, Mark Davis is cited as CEO.
In the video Davis, believed to be an Australian national, claims he’s currently in Bali, Indonesia.
BehindMLM first came across Davis in AI Trade Ponzi marketing videos, circa 2018.
Davis worked in AI Trade with RV Palafox. The pair would go on to launch PGI Global in 2020.
In October 2021 BehindMLM confirmed a US criminal investigation into PGI Global. Since then however there have been no further updates.
RV Palafox, believed to hold dual US and Philippine citizenship, has not been seen in public since PGI Global’s collapse. Mark Davis appears to have fled Australia for Indonesia.
Whether RV Palafox is involved in AladdinBOT is unclear.
Read on for a full review of AladdinBOT’s MLM opportunity.
AladdinBOT has no retailable products or services.
Affiliates are only able to market AladdinBOT affiliate membership itself.
AladdinBOT’s Compensation Plan
AladdinBOT affiliates invest USD equivalents in cryptocurrency.
This is done on the promise of advertised returns:
- JazzBOT – invest $400 or more and receive up to 1.5% a day
- AutoBOT – invest $2000 or more and receive up to 2% a day
- LiquidityBOT – invest $8000 or more and receive up to 2.5% a day
The MLM side of AladdinBOT pays on recruitment of affiliate investors.
AladdinBOT pays referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
AladdinBOT caps payable unilevel team levels at five.
Referral commissions are paid as a percentage of cryptocurrency invested across these eight levels as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 5%
- level 3 – 3%
- level 4 – 2%
- level 5 – 1%
AladdinBOT rewards affiliates who recruit new investors with the following one-time bonuses:
- generate $15,000 in downline investment volume and receive $500
- generate $100,000 in downline investment volume and receive $5000
- generate $1,000,000 in downline investment volume and receive $50,000
AladdinBOT affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $400 investment.
AladdinBOT solicits investment in various cryptocurrencies.
There’s not a lot to AladdinBOT. Mark Davis has launched a run-of-the-mill MLM crypto Ponzi, hidden behind an AI trading bot ruse.
AladdinBot offers a cutting-edge AI-based Telegram trading bot platform with a wide range of features, utilizing real-time market data, advanced charting tools, and intuitive order and risk management systems.
AladdinBOT fails to provide evidence it is paying withdrawals with trading revenue. Furthermore, AladdinBOT’s passive returns investment scheme constitutes a securities offering.
Neither AladdinBOT or Mark Davis are registered to offer securities in any jurisdiction. This means that at a minimum, AladdinBOT is committing securities fraud.
As it stands the only verifiable source of revenue entering AladdinBOT is new investment. Using new investment to pay affiliate withdrawals would make AladdinBOT a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve AladdinBOT of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of investors lose money.
Look no further than PGI Global’s collapse to see this in action.