CryptoLux Review: CLX points trading bot Ponzi scheme
CryptoLux provides no actual information on their website about who owns or runs the company.
As is typical of MLM crypto opportunities, a stock image of some guy is used to represent “Robert Alexander”, who CryptoLux claim is CEO and Founder of the company.
The same name and corporate bio appears on another website, FXTM Capital (Advanced Markets Invest):
FXTM Capital appears to be a collapsed Ponzi scheme touting a 100% monthly ROI.
It should be obvious that whoever is behind FXTM Capital is also behind CryptoLux.
The CryptoLux website domain (“cryptolux.io”) was privately registered on November 28th, 2017.
In an effort to feign legitimacy, CryptoLux provides a UK incorporation link on their website for “CryptoLux LTD”.
UK incorporation is dirt cheap and for the most part unregulated. It is a favorite for scammers looking to incorporate dodgy companies.
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.
CryptoLux Products
CryptoLux has no retailable products or services, with affiliates only able to market CryptoLux affiliate membership itself.
The CryptoLux Compensation Plan
CryptoLux affiliates invest $10 or more worth of cryptocurrency on the promise of a 150% ROI.
- Bronze – daily 1.16% ROI for 129 days
- Silver (invest at least $50 and convince others to invest $1000) – daily 1.25% ROI for 120 days
- Gold (invest at least $50 and convince others to invest $5000) – daily 1.31% ROI for 114 days
- Platinum (invest at least $250 and convince others to invest $30,000) – daily 1.35% ROI for 111 days
- Sapphire (invest at least $1000, recruit and maintain at least two Platinum ranked affiliates and convince others to invest at least $100,000) – daily 1.39% ROI for 108 days
- Emerald (invest at least $2500, recruit and maintain at least two Sapphire ranked affiliates and convince others to invest at least $250,000) – daily 1.42% ROI for 105 days
- Ruby (invest at least $10,000, recruit and maintain at least two Emerald ranked affiliates and convince others to invest at least $750,000) – daily 1.45% ROI for 103 days
- Diamond (invest $20,000, recruit and maintain at least two Ruby ranked affiliates and convince others to invest at least $1,500,000) – daily 1.49% ROI for 101 days
Investment within CryptoLux is tracked in CLX points, which are not publicly tradeable.
Residual Commissions
CryptoLux 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.
CryptoLux cap payable unilevel team levels at ten.
How many unilevel team levels a CryptoLux affiliate earns residual commissions on is determined by how much they’ve invested:
- Bronze affiliates earn 8% on level 1 (personally recruited affiliates), 3% on level 2, 2% on level 3 and 1% on levels 4 to 6
- Silver affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 and 4 and 1% on levels 5 and 6
- Gold affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 and 4, 1% on levels 5 and 6 and 0.5% on level 7
- Platinum affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 to 5 and 1% on levels 6 and 7
- Sapphire affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 to 5, 1% on levels 6 and 7 and 0.5% on level 8
- Emerald affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 to 5, 1% on levels 6 and 7, 0.5% on level 8 and 0.3% on level 9
- Ruby affiliates earn 8% on level 1, 3% on level 2, 2% on levels 3 to 7, 0.5% on level 8, 0.3% on level 9 and 0.2% on level 10
- Diamond affiliates 8% on level 1, 3% on level 2, 2% on levels 3 to 8, 0.5% on level 9 and 0.3% on level 10
Rank Achievement Bonus
Starting from the Silver rank, CryptoLux pays affiliates a one-time bonus for rank qualification.
- Silver affiliates receive $50
- Gold affiliates receive $200
- Platinum affiliates receive $1000
- Sapphire affiliates receive $5000
- Emerald affiliates receive $15,000
- Ruby affiliates receive $45,000
- Diamond affiliates receive $80,000
Joining CryptoLux
CryptoLux affiliate membership is free,
Full participation in the MLM opportunity however requires a minimum $10 investment in cryptocurrency.
Conclusion
FXTM Capital is a failed forex trading Ponzi scheme.
CryptoLux is basically the same thing, only this time around the ruse is cryptocurrency trading.
CryptoLux claims it generates external ROI revenue through “AI based crypto-trading systems”.
Naturally the company provides no evidence of any such systems existing. Nor is there any evidence of any other external ROI revenue provided.
In true Ponzi fashion, what this means is CryptoLux will continue to pay ROIs until newly invested funds dry up.
Recruitment commissions add an additional pyramid layer the scheme.
As with all such scams, a decline in affiliate recruitment corresponds to a decline in new investment.
This will see CryptoLux collapse, resulting in the majority of affiliates losing money.
The use of cryptocurrency to invest and CLX points as a vehicle to exit-scam through, guarantees that CryptoLux victim recovery efforts will be minimal.
So both of the websites are scams?
In all likelihood the same scammers are behind them.
Also, look out for “John Barron” contacting people by Whatsapp app. Number is (removed) and affiliated with (removed) (see the similarities?).
If you see their site, it’s very very similar to what’s on this website. The website is based out of NY or so they claim.
The area code is Minneapolis and this person said they were in the UK when I asked. VERY VERY FISHY. I’d dodge this like the plague.
Every now and again we’ll get a comment seeking out victims of one scam or another.
Spam-bin, always.