Alioth Club Review: Investment fraud + ALI token exit-scam
Alioth Club provides no verifiable information on its website about who owns or runs the company.
Supposedly Alioth Club “was the idea of Kerry Walsh”. Naturally there’s no information on Walsh provided.
In an attempt to appear legitimate, Alioth Club provides New Zealand incorporation details for “Alioth Club Limited” on its website.
Considering Alioth Club Limited is a basic incorporation, for the purposes of due-diligence it is meaningless.
Various Alioth Club marketing videos feature “Eric Barton”, presented an Executive Director”.
Barton speaks with a distinct European accent. The actor playing him is standing in front of a green screen.
From this it’s pretty obvious neither Kerry Walsh or Eric Barton actually exists.
Alioth Club’s website domain (“alioth.club”) was privately registered on June 16th, 2020.
At the time of publication, Alexa ranks the US (27%), Russia (26%) and Vietnam (12%) as the top three sources of traffic to Alioth Club’s website.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Alioth Club’s Products
Alioth Club has no retailable products or services, with affiliates only able to market Alioth Club affiliate membership itself.
Alioth Club’s Compensation Plan
Alioth Club affiliates invest funds on the promise of advertised returns, paid out Monday through Friday.
Alioth Club group their investment plans into forex, crypto, futures trading & eco energy and assets capitalization.
Forex
- Forex Trading 1 – invest $100 and receive $120 over 20 days
- Forex Trading 2 – invest $500 and receive $695 over 30 days
- Forex Trading 3 – invest $1000 and receive $1640 over 40 days
- Forex Trading 4 – invest $5000 and receive $10,000 over 50 days
Crypto
- Crypto 1 – invest $50 to $499 and receive $187.50 to $1870 over 250 days
- Crypto 2 – invest $500 to $2999 and receive $2375 to $14,242 over 250 days
- Crypto 3 – invest $3000 to $9999 and receive $17,250 to $57,492.50 over 250 days
- Crypto 4 – invest $10,000 to $49,999 and receive $67,500 to $337,492.50 over 250 days
- Crypto 5 – invest $50,000 to $499,999 and receive $400,000 to $3,999,990 over 250 days
- Crypto 6 – invest $500,000 to $3,000,000 and receive $4,6250,000 to $27,750,000 over 250 days
Futures Trading & Eco Energy
- invest $10,000 to $1,000,000 and receive $80,000 to $8,000,000 over 140 days
Assets Capitalization
- invest $10,000 to $1,000,000 and receive $44,319.38 to $4,432,044.63 over 100 days
Alioth Club Affiliate Ranks
There are eleven affiliate ranks with Alioth Club’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Investor – sign up at an Alioth Club affiliate
- Inspired Investor – generate $50,000 in downline investment volume
- Enthusiast – generate $100,000 in downline investment volume
- Partner – generate $250,000 in downline investment volume
- Commercial Partner – generate $500,000 in downline investment volume
- Brand Partner – generate $1,000,000 in downline investment volume
- Business Partner – generate $3,000,000 in downline investment volume
- Regional Representative – generate $5,000,000 in downline investment volume
- Representative – generate $10,000,000 in downline investment volume
- Co-founder – generate $20,000,000 in downline investment volume
- Leader – generate $50,000,000 in downline investment volume
Referral Commissions
Alioth Club 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.
Alioth Club caps payable unilevel team levels at twenty-five.
Referral commissions are paid out as a percentage of funds invested across these twenty-five levels as follows:
- Investors earn 6% on level 1 (personally recruited affiliates), 4% on level 2, 1% on levels 3 and 4, 0.5% on levels 5 to 7, 0.3% on level 8 and 0.2% on level 9
- Inspired Investors earn 7% on level 1, 3% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
- Enthusiasts earn 8% on level 1, 4% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
- Partners earn 9% on level 1, 5% on level 2, 2% on level 3, 1% on levels 4 and 5, 0.5% on levels 6 to 8, 0.3% on level 9 and 0.2% on level 10
- Commercial Partners earn 10% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 and 10 and 0.2% on levels 11 to 15
- Brand Partners earn 11% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 and 10 and 0.2% on levels 11 to 15
- Business Partners earn 12% on level 1, 5% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 13, 0.3% on level 14 and 0.2% on levels 16 to 20
- Regional Representatives earn 13% on level 1, 6% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 15 and 0.2% on levels 16 to 20
- Representatives earn 14% on level 1, 6% on level 2, 3% on level 3, 2% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 20 and 0.2% on levels 21 to 25
- Co-founders earn 15% on level 1, 7% on level 2, 4% on level 3, 3% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 20 and 0.2% on levels 21 to 25
- Leaders earn 15% on level 1, 8% on level 2, 5% on level 3, 3% on level 4, 1% on levels 5 to 8, 0.5% on levels 9 to 25 and 0.2% on levels 26 to 30
Rank Achievement Bonus
Alioth Club rewards affiliates for qualifying at Inspired Investor and higher with the following one-time bonuses:
- qualify as an Inspired Investor and receive $500
- qualify as an Enthusiast and receive $1000
- qualify as a Partner and receive $2500
- qualify as a Commercial Partner and receive $5000
- qualify as a Brand Partner and receive $10,000
- qualify as a Business Partner and receive $30,000
- qualify as a Regional Representative and receive $50,000
- qualify as a Representative and receive $100,000
- qualify as a Co-founder and receive $200,000
- qualify as a Leader and receive $500,000
Joining Alioth Club
Alioth Club affiliate membership is free.
Full participation in the attached income opportunity requires investment in USD, bitcoin or ethereum (see compensation plan details above).
Conclusion
Alioth Club represents it generates external revenue via a number of external investment opportunities.
No evidence of Alioth Club participating in any of the advertised activities is provided.
Furthermore by providing passive returns, Alioth Club’s MLM opportunity is a securities offering.
Alioth Club is not registered to offer securities in New Zealand or anywhere else in the world.
Irrespective of whether Alioth Club is operating as a Ponzi scheme (which they definable are), the company at a minimum operates illegally by committing securities fraud.
As with all MLM Ponzi schemes, Alioth Club will begin to collapse when affiliate recruitment dies down.
The exit-scam of choice for Alioth Club’s anonymous admins is an ERC-20 token launch.
Alioth Token is a stablecoin, because the project is based on the principle of providing a cryptocurrency with a fiat reserve fund in US dollars, with the initial equivalent of 1 token = 0.01 US dollars stored in the offshore reserves of Alioth Club and in New Zealand.
When new investment begins to dry up, Alioth Club will launch its Alioth Token.
At some point ROI withdrawals will be switched over, resulting in no actual money being paid (the admins keep everything invested).
From there it’s either shut everything down and run away, or get Alioth Token listed on some dodgy exchanges and then shut everything down and run away.
However Alioth Club inevitably collapses, math guarantees the majority of participants will lose money.
Bonus content!
youtube.com/watch?v=qgyEbUh2pVI
Company mug? CHECK
Company logo glued to laptop lid? CHECK
Cheesy earworm music? CHECK
Limo footage? CHECK
Stock footage? CHECK
“Stock” footage? CHECK
Goofy accent/outfit/hairstyle? CHECK
6 minutes of talking while saying nothing? DOUBLE CHECK
Sign me TF up!!!
Wait, wait, hol’ up. Where’s your desk flag?
Pssh. Amateurs.
It is remarkable what similar taste in cars the financial wizards behind investment companies like this tend to have, even when they live and work on opposite sides of the globe.
For instance, this Mr Eric Barton of the newly emerged Alioth Club is being driven around somewhere in New Zealand in exactly the same model of car Mr Adam Schultz of Forrise was being driven around in in Moscow, not that long ago:
https://behindmlm.com/mlm-reviews/forrise-review-consolidated-financial-flows-ponzi/
(Of course, Forrise only a few weeks ago sadly had to shut down after a vicious attack by hackers, who vaporized all the investors’ money with a DDOS attack: https://behindmlm.com/companies/forrise-ponzi-collapses-pulls-nonsensical-ddos-exit-scam/)
They both own a Mercedes Maybach S450, black, with a black interior but white leather seats. The only discernible difference is that Mr Schultz had the adjustable LED lighting set to blue, whereas Mr Barton has his driver set them to purple.
Now that I mention the driver: they even seem to have a similar taste in those. While we can’t see much of them, the glimpses we do get of the drivers in the two videos could almost be of the same middle-aged gentleman.
But it cannot be the same vehicle. Mr Forrise’s, sorry, Mr Schultz’s one had a sign saying “FORRISE” where the license plate should be, whereas Mr Barton’s one has a proper New Zealand license plate, CES022 (see 00:15).
But there, a slight problem creeps in. They drive on the left in New Zealand, and only right-hand drive cars are allowed on the road. This Maybach is left-hand drive. And in the one bit of footage where we see the car in traffic (00:07), it’s driving on the right.
This made me laugh so hard. Someone actually went to the trouble of finding out what a New Zealand license plate looks like and having a fake one made, to firmly locate their fictional business there – and then they stuck it on what has to be the same rental car from Moscow, forgetting about which side of the car the steering wheel should be.
(Hell, if they’d been clever they could have fixed it by having printed the plate flipped L/R, and also flipped the footage – that’s what they used to do in low-budget British movies and TV series, when they wanted to pass of scenes showing traffic shot in Britain as being set on the continent.)
I’d love to think someone read my comment about that Forrise car not having a proper license plate, and tried to not make that mistake again, only to screw up in a different way, but I’d probably be flattering myself.
And oh yes, in case someone doubts we’re in Russia again: the standard tell-tale Russian keyboard, on that laptop with the logo entertainingly ineptly stuck on it, makes its appearance at 05:39.
Amazing research- thank you guys.