Binary Torrent Review: “Publishing rights” Ponzi scheme
Binary Torrent provides no information on its website about who owns or runs the company.
The Binary Torrent website is a prelaunch placeholder, advising a company launch on or around August 27th.
Binary Torrent’s website domain (“binarytorrent.com”), was privately registered on January 4th, 2022.
BehindMLM came across Binary Torrent last month, via an agreement sent out by “Bo Jensen”.
Jensen’s email, sent out from a BinaryTorrent domain email address, pitched Binary Torrent as an eEcomelize “rescue package”.
eComelize was a pyramid scheme launched by Jan-Eric Nyman in 2020.
Nyman’s MLM roots date back to the Unaico SiteTalk pyramid scheme. Today he’s best known for being a former developer of the notorious OneCoin Ponzi scheme.
After eComelize collapsed, Nyman went on to front Lucky Dozens, an illegal lottery scheme launched in mid 2021.
Lucky Dozens collapsed on or around September 2021. Four months later Nyman registered Binary Torrent’s website domain.
Read on for a full review of Binary Torrent’s MLM opportunity.
Binary Torrent’s Products
Binary Torrent affiliates invest in Lapland Mineral Gold Tokens (LMGT).
- White Package – invest €99 EUR and receive 16 LMGT
- Green Package – invest €199 EUR and receive 50 LMGT
- Blue Package – invest €499 EUR and receive 175 LMGT
- Red Package – invest €1299 EUR and receive 500 LMGT
- Purple Package – invest €2549 EUR and receive 1100 LMGT
- Black Package – invest €5049 EUR and receive 2300 LMGT
To stay eligible to earn commissions, Binary Torrent affiliates must reinvest every four months.
Binary Torrent represents “one token is pegged to 0.1 gram gold”. Binary Torrent goes on to state “investors often consider gold one of the safest
investments”, implying investing in LMGT will generate passive returns.
The MLM side of Binary Torrents pays on recruitment of affiliate investors.
Binary Torrent restricts affiliate withdrawals by segmenting them into three categories:
- cash wallet – can be withdrawn for actual money
- trading wallet – mandatory reinvestment through Binary Torrent’s internal exchange
- tokens – payment of withdrawals in LMGT tokens
How much or little Binary Torrent affiliates are able to withdraw without having to jump through hoops is based on the highest package tier they’ve investe at:
- White Package tier affiliates receive 40% of withdrawals to the cash wallet, 30% to the trading wallet and 30% in LMGT tokens
- Green Package tier affiliates receive 50% of withdrawals to the cash wallet, 25% to the trading wallet and 25% in LMGT tokens
- Blue Package tier affiliates receive 60% of withdrawals to the cash wallet, 20% to the trading wallet and 20% in LMGT tokens
- Red Package tier affiliates receive 70% of withdrawals to the cash wallet, 15% to the trading wallet and 15% in LMGT tokens
- Purple Package tier affiliates receive 80% of withdrawals to the cash wallet, 10% to the trading wallet and 10% in LMGT tokens
- Black Package tier affiliates receive 90% of withdrawals to the cash wallet, 5% to the trading wallet and 5% in LMGT tokens
Binary Torrent Affiliate Ranks
There are eleven affiliate ranks within Binary Torrent’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as a Binary Torrent affiliate, pay the annual fee, invest €99 EUR or more and continue to reinvest every four months
- Manager – personally invest at least €110 EUR, recruit and maintain two Affiliates or higher and generate 5000 GV in accumulated weaker binary team side volume over the past 12 months
- Director – personally invest at least €220 EUR, recruit and maintain three Affiliates or higher and generate 10,000 GV in accumulated weaker binary team side volume over the past 12 months
- Executive – personally invest at least €440 EUR, recruit and maintain four Affiliates or higher and generate 20,000 GV in accumulated weaker binary team side volume over the past 12 months
- Ruby – personally invest at least €880 EUR, recruit and maintain six Affiliates or higher (one must be Executive or higher), and generate 40,000 GV in accumulated weaker binary team side volume over the past 12 months
- Emerald – maintain an active €880 EUR investment, recruit and maintain seven Affiliates or higher (one must be Ruby or higher), and generate 75,000 GV in accumulated weaker binary team side volume over the past 12 months
- Diamond – personally invest at least €1650 EUR investment, recruit and maintain eight Affiliates or higher (one must be Emerald or higher), and generate 150,000 GV in accumulated weaker binary team side volume over the past 12 months
- Blue Diamond – maintain an active €1650 EUR investment, recruit and maintain nine Affiliates or higher (one must be Diamond or higher), and generate 300,000 GV in accumulated weaker binary team side volume over the past 12 months
- Black Diamond – personally invest at least €4950 EUR, maintain nine personally recruited Affiliates or higher (one must be Blue Diamond or higher), and generate 750,000 GV in accumulated weaker binary team side volume over the past 12 months
- Crown Diamond – maintain an active €4950 EUR investment, maintain nine personally recruited Affiliates or higher (one must be Black Diamond or higher), and generate 1,500,000 GV in accumulated weaker binary team side volume over the past 12 months
- Presidential Diamond – maintain an active €4950 EUR investment, maintain nine personally recruited Affiliates or higher (one must be Crown Diamond or higher), and generate 5,000,000 GV in accumulated weaker binary team side volume over the past 12 months
GV stands for “Group Volume”. Binary Torrent calculated GV as 90% of invested funds.
This means Binary Torrents investment packages don’t match up to the required investment amounts. Because of this I’ve provided required investment amounts in euros over tying them to any specific package tier.
Binary Torrent affiliates earn 10% of funds invested in LMGT tokens by personally recruited affiliates.
Binary Torrent affiliates pay 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 Binary Torrent tallies up new investment volume on both sides of the binary team.
Residual commissions are paid as a percentage of new investment volume on the weaker binary team side, based on rank:
- Affiliates earn a 10% residual commission rate, no cap specified
- Managers earn an 11% residual commission rate, capped at €100 EUR a week
- Directors earn a 12% residual commission rate, capped at €250 EUR a week
- Executives earn a 13% residual commission rate, capped at €500 EUR a week
- Rubys earn a 14% residual commission rate, capped at €1000 EUR a week
- Emeralds earn a 15% residual commission rate, capped at €4000 EUR a week
- Diamonds earn a 16% residual commission rate, capped at €10,000 EUR a week
- Blue Diamonds earn a 17% residual commission rate, capped at €20,000 EUR a week
- Black Diamonds earn an 18% residual commission rate, capped at €30,000 EUR a week
- Crown Diamonds earn a 19% residual commission rate, capped at €40,000 EUR a week
- Presidential Diamonds earn a 20% residual commission rate, capped at €50,000 EUR a week
Once paid out, funds are matched against the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side carries over.
Binary Torrent pays a Matching Bonus 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.
Binary Torrent caps the Matching Bonus at nine unilevel team levels.
The Matching Bonus is paid as a percentage of residual commissions earned by unilevel team affiliates across these nine levels, again based on rank:
- Directors earn a 10% match on level 1 (personally recruited affiliates)
- Executives earn a 10% match on levels 1 and 2
- Rubys earn a 10% match on levels 1 to 3
- Emeralds earn a 10% match on levels 1 to 3 and 5% on level 4
- Diamonds earn a 10% match on levels 1 to 3 and 5% on levels 4 and 5
- Blue Diamonds earn a 10% match on levels 1 to 3, 5% on levels 4 and 5 and 2.5% on level 6
- Black Diamonds earn a 10% match on levels 1 to 3, 5% on levels 4 and 5 and 2.5% on levels 6 and 7
- Crown Diamonds earn a 10% match on levels 1 to 3, 5% on level 4 and 5 and 2.5% on levels 6 to 8
- Presidential Diamonds earn a 10% match on levels 1 to 3, 5% on level 4 and 5 and 2.5% on levels 6 to 9
Rank Achievement Bonus
Binary Torrent rewards affiliates for qualifying at Executive and higher with the following one-time Rank Achievement Bonuses:
- qualify at Executive and receive €100 EUR
- qualify at Ruby and receive €500 EUR
- qualify at Emerald and receive €1000 EUR
- qualify at Diamond and receive €5000 EUR
- qualify at Blue Diamond and receive €10,000 EUR
- qualify at Black Diamond and receive €15,000 EUR
- qualify at Crown Diamond and receive €20,000 EUR
- qualify at Presidential Diamond and receive €50,000 EUR
Diamond to Presidential Diamond ranked affiliates qualify for a monthly Lifestyle Bonus.
- Diamonds receive €500 EUR a month
- Blue Diamonds receive €1000 EUR a month
- Black Diamonds receive €1500 EUR a month
- Crown Diamonds receive €2000 EUR a month
- Presidential Diamonds receive €5000 EUR a month
Black Diamond Trips
Black Diamond ranked Binary Torrent affiliates qualify for
unique and exclusive luxury holiday with all expenses paid together with our co-founders, management and mining operation partners.
The Black Diamond Trip is awarded annually, as long as Black Diamond rank is maintained.
Joining Binary Torrent
Binary Torrent affiliate membership is paid annually. The specific amount payable is not disclosed.
On top of that, in order to earn commissions, each Binary Torrent affiliate must invest €99 to €5049 every four months.
Binary Torrent Conclusion
Binary Torrent is essentially a slightly modified OneCoin Ponzi clone.
Education packages have been swapped out for “publishing rights”, and the ONE token equivalent is LMGT tokens. There are also withdrawal restrictions, designed to trap as much money in the system for as long as possible.
Binary Torrent’s official marketing presentation claims the company was “founded in the USA with offices in Sweden and Vietnam”.
Analyzing this claim allows to deconstruct the three core components of Binary Torrent’s Ponzi scheme.
The only connection Binary Torrent has to the US is the Delaware shell companies Binary Torrent LLC and Made4Share Publishing LLC.
Made4Share Publishing LLC was incorporated on March 21, 2022. I don’t know exactly when Jan-Eric Nyman acquired the domain “made4share.com”, but through the Wayback Machine I can confirm it was parked as late as December 2021.
The Made4Share component of Binary Torrent sees the company allow investors to upload ebooks to the site.
Publish your online e-book with Made4Share and get read by millions of readers. The new way to be heard, seen, and appreciated.
Credits to do so are bundled with Binary Torrent’s LMGT token investment packages.
Binary Torrent’s connection to Sweden is that’s where Jan-Eric Nyman is from:
Binary Torrent’s connection to Vietnam is through Simon Le:
Le was a top earner in OneCoin, focusing his marketing and recruitment efforts on Vietnam. After OneCoin collapsed in 2017, Le fled to Vietnam.
He’s since attempted to launch multiple spinoff Ponzi schemes, none of which have gone anywhere. BehindMLM last saw Le in late 2021, as part of the WinWheel Ponzi scheme – also run by former OneCoin scammers.
WinWheel collapsed shortly after launch. Today the scam’s website is non-responsive.
The second component of Binary Torrent is Lapland Minerals Inc., a shell company Nyman set up in Panama on or around March 2022.
Panama is a scam-friendly jurisdiction with no known regulation of MLM related securities fraud.
It is this jurisdiction Nyman has incorporated Lapland Minerals in, for the sole purpose of generating LMGT tokens through.
LMGT is a BEP-20 shit token. BEP-20 tokens are created on the Binance Smart Chain. Anyone can set one up in a few minutes at little to no cost.
Through Lapland Minerals, Nyman claims
all LMGT have accurate and verifiable 0.1 gram Gold asset claims attached to them, and there are a total of 1.2 billion supply.
On this baseless premise, Nyman flogs LMGT to investors “based on current gold price index.”
This is an interesting component of Binary Torrent, as it means anyone who invests is hit with an instant loss.
E.g. you feel like losing money to serial Ponzi scammers so you invest in Binary Torrent’s Black Package for €5049 EUR.
This gets you 2300 LMGT tokens, coming in at €2.19 EUR each.
Binary Torrent represents each LMGT token is the equivalent of 0.1 grams of gold.
There are 1000 grams in a kg, so we multiply 2.19 by 10,000 to get the LMGT 1 kg of gold equivalent.
That comes to €21,900 EUR. The actual value of 1 kg of gold is currently ~€56,463 EUR.
Binary Torrent’s bullshit gold tokens represent an instant 61% loss in value.
And things get even worse when you look at LMGT’s public trading value:
LMGT is currently trading at around 0.40 EUR. Jan-Eric Nyman is selling you tokens he created out of thin air for €2.19 EUR each. And at best they have a public trading value of 0.40 EUR each.
Keep in mind none of this is supposed to make sense under scrutiny. Nyman has just created a bullshit Ponzi backstory with a bunch of shell companies to gain access to banking channels.
The way the Ponzi scheme is supposed to work is new investors come on board, LMGT pumps and existing investors are able to cash out.
And that’ll probably happen as long as new investors sign up to lose money. Although at 0.40 EUR each, LMGT has to be pumped to at least the amount Nyman is selling them to Binary Torrent affiliates for.
Like OneCoin, the MLM side of Binary Torrent is a pyramid scheme. It’s sole objective is to incentivize recruitment of affiliate investors, without which Binary Torrent’s Ponzi scheme is dead in the water.
Since OneCoin the failed Ponzi launches between Nyman and Le are adding up. Binary Torrent isn’t likely to play out any different.
Notwithstanding, even if it does gain some traction and Nyman and Le are able to cash out, the majority of participants in Ponzi schemes lose money.