Clube365 Review: Bitcoin investment fraud
Clube365 provides no information about who owns or runs the company on their website.
Clube365’s website domain (“clube365.com”) was privately registered on December 4th, 2019.
I came across Clube365 doing background research on a recent story on Sann Rodrigues.
News had broke of Rodrigues fleeing Brazil with the help of Federal Police. And sure enough, there was Rodrigues pimping Clube365 on YouTube:
Whether Rodrigues, who is believed to be hiding out in Portugal, has a hand in running Clube365 is unclear.
Wouldn’t be the first time he’s fronted a Ponzi scheme and pretended he wasn’t running it.
Note that the English translation for Clube365 is “Club365”. Given promotion of the company is exclusively in Portuguese, I’ve used the Portuguese name throughout this review.
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.
Clube365 has no retailable products or services, with affiliates only able to market Clube365 affiliate membership itself.
Clube365’s Compensation Plan
Clube 365 affiliates deposit bitcoin with third parties and then hand over control of the funds to Clube 365.
- Clube Junior affiliates are able to deposit $500 with BitMex, $2000 with ICMarkets, $200 with Binary and $375 with Bet365
- Clube Professional affiliates are able to deposit $5000 with BitMex and ICMarkets, $500 with Binary and $750 with Bet365
- Clube President affiliates are able to deposit $10,000 with BitMex and ICMarkets, $1000 with Binary and $1250 with Bet365
- Clube President VIP affiliates are able to deposit $100,000 with BitMex, $1,000,000 with ICMarkets, $1000 with Binary and $2000 with Bet365
Clube 365 claims it generates returns via sports arbitrage, forex and cryptocurrency trading and binary options.
Specific return examples aren’t provided, however Clube 365’s marketing represents monthly returns of between about 15% to 30%.
Clube365 pays residual 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.
Residual commissions are paid out as a percentage of monthly affiliate membership fees paid by unilevel team affiliates.
How many unilevel team levels a Clube365 affiliate earns residual commissions on is determined by how much they pay in monthly fees:
- Clube Junior affiliates earn 25% on level 1 (personally recruited affiliates)
- Clube Professional and President affiliates earn 25% on level 1 and 5% on levels 2 to 5
Clube President VIP Bonus
Clube365 takes 5% of company-wide affiliate membership fees and pays equal shares to Clube President VIP ranked affiliates.
To qualify as a Clube President VIP, an affiliate must
- sign up as a Clube President; and
- recruit ten Clube President affiliates within your first 60 days
Clube365 has four affiliate membership tiers:
- Clube Junior – $72 a month
- Clube Professional – $144 a month
- Clube President – $239 a month
How much a Clube 365 affiliate spends on membership directly impacts their income potential.
Note that all payments in Clube 365 are made in bitcoin.
The “but the money is in your account” Ponzi ruse was a thing a few years back. When you hand over complete control of your money to scammers, don’t be surprised when they scam you.
And that’s exactly what happened.
When the pot of money scammers control gets big enough, they execute bad trades in their favor.
This effectively clears out their affiliate’s balances. Sure, you can put the brakes on the bot after the fact – but by then it’s too late.
If you want to read a good example of all the bullshit arguments raised by scammers promoting this model, our Crypto World Evolution review makes for good reading.
That was two years ago, and now you have Clube365 targeting the Portuguese speaking world with the same model.
Anonymous owners, unrecoverable bitcoin, pyramid recruitment commissions – all hallmarks of an illegal operation.
Another aspect to consider is if these profitable bots actually existed, why don’t Clube365’s owners just run them for themselves?
And even if you buy into Clube365’s trading claims, of which there’s no proof (“money in my account!” isn’t verifiable proof of trading), Clube365 are still promoting a passive investment opportunity.
An MLM company promoting a passive investment opportunity is a securities offering.
Clube365 provides no evidence it has registered its securities offering with financial regulators, meaning the company is committing securities fraud.
Fun fact; Sann Rodrigues is explicitly barred from committing further acts of securities fraud as part of his TelexFree Ponzi settlement. That’s why he’s not living in the US anymore, or promoting anything in English.
At the end of the day Clube365 will chug along as long as promoters like Rodrigues are able to recruit. When that dies down, in addition to pyramid recruitment losses (monthly bitcoin fees), affiliate accounts will be wiped clean.
Here’s an idea: If an MLM company is asking you hand over control of unrecoverable cryptocurrency to persons unknown; Don’t.