BotTronic Review: USDC forex trading bot securities fraud
BotTronic provides no information on its website about who owns or runs the business.
Despite the lack of transparency, BotTronic claims to be “solely focused on transparency”.
In the footer of BotTronic’s website a corporate address in Malta and registration number appear.
The address is shared with multiple unrelated shell companies. This suggests BotTronic exists in Malta in name only.
The provided “registration number”, if legitimate to begin with, would thus correspond to a meaningless shell company.
On its website BotTronic claims to be “a brand under F.A Services”.
Malta itself is a scam-friendly jurisdiction with no active regulation of MLM companies.
BotTronic’s official marketing credits Jeffrey Voskuil as the company’s CEO.
On July 23rd BotTronic uploaded a video to its official YouTube channel titled “Live Zoom – BotTronic Copy Bot Trading in the Forex Markets | 2021/07/22 | With CEO & CMO“.
The Q&A section of the video features Voskuil and BotTronic CMO Elisabeth Botman:
BotTronic represents Voskuil was “born and raised in the Netherlands”. This would appear to confirm that BotTronic is being operated from the Netherlands as opposed to Malta.
I wasn’t able to verify whether Voskuil has an MLM history.
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.
BotTronic has no retailable products or services.
BotTronic affiliates are only able to market BotTronic affiliate membership itself.
BotTronic’s Compensation Plan
BotTronic affiliates invest USD Coin (USDC) on the promise of “target ROIs”.
- ExTronic ($97 monthly fee, $597 bi-annually or $997 annually) – invest $1000 to $50,000 and receive a targeted 20% a month
- LiTronic ($197 monthly fee, $1197 bi-annually or $2297 annually) – invest $1000 to $15,000 and receive a targeted 30% a month
- VoTronic ($297 monthly fee, $1697 bi-annually or $3297 annually) – invest $5000 to $50,000 and receive a targeted 30% a month
- ProTronic ($497 monthly fee, $3097 bi-annually or $5997 annually) – invest $15,000 to $100,000 and receive a targeted 30% a month
The MLM side of BotTronic sees commissions paid on recruitment of affiliates.
Note that to qualify for commissions, a BotTronic affiliate must have an active subscription.
BotTronic pays referral commissions down three levels of recruitment (unilevel):
Residual commissions are paid as a percentage of mandatory subscription fees paid by recruited affiliates:
- level 1 (personally recruited affiliates) – 15%
- level 2 – 10%
- level 3 – 5%
BotTronic affiliates earn a $500 bonus per 250 subscriptions they personally sell.
With affiliates required to purchase a trading subscription to qualify for commissions, these become the defacto cost of BotTronic affiliate membership.
- ExTronic – $97 monthly fee, $597 bi-annually or $997 annually
- LiTronic – $197 monthly fee, $1197 bi-annually or $2297 annually
- VoTronic – $297 monthly fee, $1697 bi-annually or $3297 annually
- ProTronic – $497 monthly fee, $3097 bi-annually or $5997 annually
Note that while USD is quoted throughout this review, BotTronic represents it only accepts and pays out USD Coin (USDC).
BotTronic is your typical “trading bot” passive investment scheme.
BotTronic claims it is
redefining and simplifying bot trading in the forex markets.
Affiliates pay a monthly fee for access to the forex bot, with BotTronic trading for them and generating passive returns.
As per the Howey Test, BotTronic’s offering is an investment contract.
BotTronic affiliate funds are pooled under control of the bot (a third-party) and returns being generated passively (through the work of others).
The MLM side of BotTronic constitutes pyramid recruitment. All affiliates being required to maintain a subscription is pay to play, another regulatory red flag.
On its website BotTronic claims to be legally compliant:
We Are Compliant
Compliance matters! We have strived to do everything just right. We have partnered with the right professionals and taken care of all the required legalities.
On its official YouTube channel, BotTronic has uploaded several interview videos featuring early US-based affiliate investors.
There’s Ken Shuler (aka Doyle Shuler) from Charleston, South Carolina:
Zeb Summers from Ashburn, Virginia:
Phillip Lee from Atlanta, Georgia:
David Garner from Kentucky:
And Fetigue Gbane from Fredericksburg, Virginia:
There are also videos featuring Alex Boorman (South Africa) and Oddbjorn Dahl (Norway).
In order to offer securities legally, BitTronic needs to be registered with financial regulators.
A search of the SEC’s public Edgar database reveals neither BitTronic or Jeffrey Voskuil are registered to offer securities in the US.
Providing passive returns via forex trading would also require BotTronic to register as a broker with the CFTC.
On its website BitTronic makes no representation it has registered with financial regulators in any jurisdiction.
This means that, irrespective of anything else, BotTronic is committing securities fraud in every country it operates in.
In order to maintain regulatory compliance, BotTronic would be required to provide periodic audited financial reports.
As part of these reports BotTronic would be required to disclose crucial due-diligence information about its trading bots.
Who created them, who owns and runs them and whether the bots have a proven track record.
Without these reports, there is no way for consumers to accurately assess BitTronic’s income opportunity.
Note that social media marketing is not a substitute for legally required regulatory requirements. Nor is “bUt I’m MaKiNg MoNeY!”
Typically the only real money made is in pyramid recruitment.
So it is with BitTronic.
If an MLM company offering a passive investment opportunity isn’t registered with financial regulators and can’t provide you audited financial reports, stay away.