Bitsolives Review: BuxCoin Ponzi points investment fraud
Bitsolives provides no information on their website about who owns or runs the business.
The Bitsolives website domain (“bitsolives.com”) was privately registered on March 10th, 2017.
Further research reveals Bitsolives marketing material crediting Mohsin Jameel as CEO of the company.
As reported by the Tribune India last year, Jameel (right) is known to Indian authorities and has a history or running scams.
The Enforcement Directorate (ED) has initiated the process of attaching properties of five arrested accused in the multi-crore Crown Chit Fund scam even as some of the other accused held a function in Thailand last week to attract investors.
The function has sent the alarm bells ringing here as both ED and Punjab Police had banned the six companies that were floated one after the other by the accused in the last five years to dupe investors of about Rs 10,000 crore.
Despite this, the accused, led by Mohsin Jameel, the CEO of the companies, went ahead with the function.
The accused allegedly floated the seventh company named Crown Coin last month.
After related reports were published in The Tribune, the name was changed to Bitso Lives.
The new company has invited investors to use Crypto Currency (which is a digital currency called Bit Coins) for the purpose.
Officials in the ED and the Punjab Police said the new company too was illegal.
The ED is looking into the money laundering angle in the scam while the police have acted on fraud against thousands of investors.
Rs. 10,000 crore comes to about $1.5 billion dollars, so Jameel’s scamming has evidently proven lucratively profitable over the years.
Whereas his earlier efforts focused on forex fraud, now it seems he’s turned his interest to cryptocurrency.
Late last year, the Times of India reported several arrests of investors pushing Jameel’s Zuflo Coin Ponzi scheme
Jameel himself remains at large and, when he’s not promoting his various scams in third-world countries, is believed to be operating out of the UK.
As of February 2018, Jameel remains a fugitive and wanted by Indian authorities.
Read on for a full review of the Bitsolives MLM opportunity.
Bitsolives has no retailable products or services, with affiliates only able to market Bitsolives affiliate membership itself.
The Bitsolives Compensation Plan
Bitsolives affiliates invest €200 to €10,000 EUR on the promise of an advertised ROI over 20 months:
- Silver – invest €200 EUR and receive a €320 EUR ROI
- Gold – invest €1000 EUR and receive a €2000 EUR ROI
- Platinum – invest €5000 EUR and receive a €12,000 EUR ROI
- Diamond – invest €10,000 EUR and receive a €30,000 EUR ROI
Note that all ROI and commission payouts within Bitsolives are split between bitcoin (70%) and buxcoin points (30%).
Buxcoins are issued to affiliates via a 4:1 ratio ($1 commission equivalent = 4 buxcoins).
BuxCoins are held by Bitsolives for 180 days, after which they are returned to the affiliate with a 25% point bonus.
Bitsolives pay affiliates to recruit new affiliates.
How much of a recruitment commission is paid out is determined by how much a Bitsolives affiliate has invested:
- Silver affiliates receive a 6% recruitment commission
- Gold affiliates receive an 8% recruitment commission
- Platinum and Diamond affiliates receive a 10% recruitment commission
Bitsolives 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 Bitsolives tallies up new investment volume on both sides of the binary team.
Affiliates are paid a percentage of funds generated on their weaker binary side.
How much of a percentage is paid out is determined again by how much a Bitsolives affiliate has invested:
- Silver affiliates are paid 6%, capped at €5000 EUR a week
- Gold affiliates are paid 8%, capped at €10,000 EUR a week
- Platinum affiliates are paid 10%, capped at €15,000 EUR a week
- Diamond affiliates are paid 12%, capped at €25,000 a week
There is also a Super Diamond rate however specific details are not provided.
Bitsolives pay 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.
Bitsolives cap payable unilevel team levels at seven.
The Matching Bonus is paid out on residual commissions generated across these seven levels as follows:
- Silver affiliates earn a 10% match on level 1 (personally recruited affiliates)
- Gold affiliates earn a 10% match on levels 1 to 3
- Platinum affiliates earn a 10% match on levels 1 to 3 and 5% on levels 4 and 5
- Diamond affiliates earn a 10% match on levels 1 to 3 and 5% on levels 4 to 7
Bitsolives affiliate membership is tied to a €200 to €10,000 EUR investment.
- Silver – €200 EUR
- Gold – €1000 EUR
- Platinum – €5000 EUR
- Diamond – €10,000 EUR
The primary difference between the above affiliate membership options is income potential via the Bitsolives compensation plan.
On its website Bitsolives claims to be “an exclusive marketing partner for Buxcoin”.
The ultimate aim of Bitsolives is to make buying and selling of Buxcoin as simple as possible for people who wanted a pain-free experience and the fastest transactions.
Buxcoin is a non-publicly tradeable altcoin, with Bitsolives presenting itself as your typical MLM pump and dump marketing arm.
Buxcoin itself has likely been set up by Mohsin Jameel and his associates.
The only exchange I found trading buxcoin is Cashfinex, whose marketing tag-line is as follows:
Transfer from one wallet to another within second. It’s that simple, Buy buxcoin at the best rate.
Cashfinex appears to have been set up solely to trade buxcoin through, thus making it an internal exchange.
In effect Bitsolives, Buxcoin and Cashfinex are all part of the same scheme.
Through Bitsolives, Mohsin Jameel and friends offload pre-generated buxcoin through at whatever value they set.
It also serves as a ROI withdrawal platform, allowing Bitsolives affiliates to who put in withdrawal requests to steal money from those who invested after them.
For their part Bitsolives claim to generate ROI revenue through cryptocurrency trading.
No evidence of any trading taking place is provided, leaving new investment as the sole source of revenue.
Bitsolives use of newly invested funds to pay off existing investors makes it a Ponzi scheme.
The rest of the compensation plan is tied to recruitment of new affiliate investors, adding an additional pyramid layer to the scheme.
Mohsin Jameel has a documented history of launching scams dating back as far as 2010 with Capital Consultant.
Bitsolives presents a new vehicle for Jameel to continue scamming people though, however the fundamentals remain the same.
You sign up as a new affiliate, invest your money and for as long as new investors sign up after you, steal their money.
Once recruitment dies down, Jameel drops the company and launches a new one.
Migration into the cryptocurrency niche serves Jameel’s interests, as when Bitsolives inevitable collapses, he can just adjust the value of buxcoin on Cashfinex to $0.
On the backend most of the money winds up in Jameel’s hands and he gets to effectively wipe any remaining ROI liabilities.
Jameel has been Ponzi scamming victims for around eight years now. Don’t expect anything other than widespread losses when Bitsolives inevitably collapses.