CapitalX Review: AI trading bot MLM crypto Ponzi scheme
CapitalX fails to provide ownership or executive information on its website.
CapitalX’s website domain (“capitalx.pro”), was privately registered on March 7th, 2023. CapitalX marketing videos on their website feature dubbed over stock footage.
In an attempt to appear legitimate, CapitalX provides incorporation details for Capital X Limited.
Capital X Limited was incorporated in the UK on March 7th.
In the footer of CapitalX’s website, the company states;
Capital X Limited is a Registered Cryptoasset firm and is registered with the UK Financial Conduct Authority.
A search of the FCA’s publicly accessible database reveals Capital X Limited is not registered with the FCA. It appears CapitalX is attempting to pass off basic incorporation as registration with the FCA.
In any event, an MLM company operating or claiming to operate out of the UK is a red flag.
UK incorporation is dirt cheap and effectively unregulated. On top of that the FCA, the UK’s top financial regulator, do not actively regulate MLM related securities fraud.
As a result the UK is a favored jurisdiction for scammers looking to incorporate, operate and promote fraudulent companies.
For the purpose of MLM due-diligence, incorporation in the UK or registration with the FCA is meaningless.
CapitalX also provides a “capital loss protection” document, purportedly procured from Berkshire Hathaway Speciality Insurance.
This document appears to be forged, by way of
- awkwardly placed logos at the bottom
- font size disparity
- spacing inconsistencies and
- no names appearing on the document
For reference I’ve provided a copy of the bogus document below (click to enlarge):
One name we can peg to CapitalX is Alisher Bekmuratov.
Bekmuratov’s name appears as the author for CapitalX’s one-page marketing presentation (right).
I ran a search for Alisher Bekmuratov and came across several hits in Kyrgyzstan, Uzbekistan and Russia. I only have a name to go on so can’t definitively identify CapitalX’s Bekmuratov, but it’s clear it’s an Eastern European name.
This suggests whoever is running CapitalX has ties to eastern Europe.
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.
CapitalX has no retailable products or services.
Affiliates are only able to market CapitalX affiliate membership itself.
CapitalX’s Compensation Plan
CapitalX affiliates invest funds on the promise of advertised returns:
- Silver – invest $50 to $10,000 and receive 3% a day for 90 days
- Gold – invest $1500 to $10,000 and receive 5% a day for 24 days
- Platinum – invest $2000 to $10,000 and receive 200% after 14 days
- Elite – invest $2500 to $50,000 and receive 250% after 7 days
- VIP – invest $5000 to $50,000 and receive 300% after 120 hours
CapitalX pays referral commissions on invested funds down three levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 5%
- level 2 – 3%
- level 3 – 1%
CapitalX affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $50 investment.
CapitalX claims to use AI trading bots to generate returns.
Capital X Limited uses advanced AI technology to create trading bots that can analyze market data and make trading decisions based on that data.
The AI algorithms used by the company are designed to analyze large amounts of data and identify patterns and trends that may not be easily visible to human traders.
No evidence of CapitalX having or using trading bots to generate external revenue is provided.
Furthermore, CapitalX’s marketing claims fail the Ponzi logic test.
If CapitalX had an AI trading bot capable of generating 300% every 120 hours, what do they need your money for?
As it stands, the only verifiable source of revenue entering CapitalX is new investment. Using new investment to pay ROI withdrawals makes CapitalX a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve CapitalX of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
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