Defi Synergy fails to provide ownership or executive information on its website.

Defi Synergy’s website domain (“defisynergy.io”), was privately registered on December 23rd, 2023.

On March 2nd, 2024, Defi Synergy uploaded a video to its official YouTube channel titled “Launch Defi Synergy“.

The recording is of a Zoom webinar, primarily attended by what appears to be middle-aged to elderly US residents.

Hosting the webinar was Texas resident James Prewitt.

Prewitt made a name for himself as a National Director in the YTB Travel pyramid scheme (aka YTB International).

Circa 2010, Prewitt’s YTB Travel marketing hook was convincing religious leaders to scam their followers.

Following regulatory action from California in 2008, YTB Travel began a drawn out collapse over the following years. YTB Travel would eventually go on to file for bankruptcy in 2013.

Prewitt and wife Marcia followed YTB Travel co-founder Scott Tomer into Surge 365.

Surge365, aka Surge Three Sixty-Five, launched in 2015. Not surprisingly, Surge365 is another travel-themed MLM recruitment scheme.

Today Surge365’s website is still up. Tomer is now Chairman of the company and the Prewitt’s appear to have moved on to cryptocurrency.

Getting back to Defi Synergy’s launch video, James Prewitt goes on to introduce Maryland resident J. Scott Whitney (aka Scott Whitney).

Whitney claims to have “been in the crypto space since 2016”. I can’t speak to that but can confirm Whitney was promoting the non-crypto MLM company Asirvia in 2017.

What I can confirm is Whitney is a serial promoter of MLM crypto Ponzi schemes. Whitney appears to promote fraudulent investment schemes under “A Team United” branding.

Seemingly in preparation for Defi Synergy’s launch, Whitney has attempted to delete his promotion of fraudulent MLM crypto investment schemes.

Nonetheless, two MLM crypto Ponzi schemes we can tie Whitney to are NovaTechFX and Vortic United.

NovaTechFX was an MLM crypto Ponzi scheme that collapsed in February 2023.

Vortic United was a Boris CEO MLM crypto Ponzi that collapsed in August 2023.

Given he’s actively deleting his scamming past, whether Whitney promoted other MLM crypto Ponzis in the lead up to Defi Synergy is unclear.

The third name we can tie to Defi Synergy is Bob Bearden, who Whitney introduces as his “partner”.

Bob Bearden promoted Visalus, Jeunesse and QuiAri, before transitioning to MLM crypto fraud with NovaTechFX.

As of February 2024, an ongoing SEC investigation into NovaTechFX is underway.

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.

Defi Synergy’s Products

Defi Synergy has no retailable products or services.

Affiliates are only able to market Defi Synergy affiliate membership itself.

Defi Synergy’s Compensation Plan

Defi Synergy affiliates invest USD equivalents in cryptocurrency.

This is done on the promise of passive daily returns, paid for 7 days:

  • Mini – invest $100 to $399 and receive 1% a day
  • Pro – invest $400 to $1999 and receive 1.5% a day
  • Premium – invest $2000 to $7999 and receive 2% a day
  • Supreme – invest $8000 or more and receive 2.5% a day

Note that initially invested funds are locked up for 14 days.

The MLM side of Defi Synergy pays on recruitment of affiliate investors.

Defi Synergy Affiliate Ranks

There are eight affiliate ranks within Defi Synergy’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. DS1 – generate $25,000 in downline investment volume
  2. DS2 – generate $50,000 in downline investment volume
  3. DS3 – generate $75,000 in downline investment volume
  4. DS4 – generate $100,000 in downline investment volume
  5. Ambassador – generate $250,000 in downline investment volume
  6. Royal Ambassador – generate $500,000 in downline investment volume
  7. Crown Ambassador – generate $750,000 in downline investment volume
  8. Global Ambassador – generate $1,000,000 in downline investment volume

Note that Defi Synergy only counts downline investment volume down five levels of recruitment:

  • level 1 (personally recruited affiliates) – 100% of invested funds are counted
  • level 2 – 40% of invested funds are counted
  • level 3 – 20% of invested funds are counted
  • level 4 – 10% of invested funds are counted
  • level 5 – 5% of invested funds are counted

Referral Commissions

Defi Synergy pays referral commissions on invested cryptocurrency 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.

Defi Synergy caps payable unilevel team levels at five. Referral commissions are paid as a percentage of cryptocurrency invested across these five levels as follows:

  • level 1 (personally recruited affiliates) – 10%
  • level 2 – 5%
  • level 3 – 3%
  • level 4 – 2%
  • level 5 – 1%

Rank Achievement Bonus

Defi Synergy rewards affiliates for qualifying at DS1 and higher with the following one-time Rank Achievement Bonuses:

  • qualify at DS1 to DS4 and receive $500 at each rank
  • qualify at Ambassador and receive $2500
  • qualify at Royal Ambassador to Global Ambassador and receive $5000 at each rank

Joining Defi Synergy

Defi Synergy affiliate membership is free.

Full participation in the attached income opportunity requires a minimum $100 investment.

Defi Synergy solicits investment in various cryptocurrencies.

Defi Synergy Conclusion

Defi Synergy represents it generates external revenue via AI trading bots.

DeFi Synergy’s AI Protocol aims to revolutionize decentralized finance by providing intelligent solutions for liquidity management, risk assessment, and yield optimization.

Our AI technology provides real-time insights and predictive analytics, catering to both newcomers and seasoned traders.

No verifiable evidence of Defi Synergy having or utilizing AI trading bots is provided.

Furthermore, as per the Howey Test Defi Synergy’s passive returns investment scheme constitutes a securities offering.

Neither Defi Synergy, James Prewitt, J. Scott Whitney or Bob Bearden are registered with the SEC.

In the past we’ve also seen the CFTC go after MLM crypto trading bot schemes. None of the Defi Synergy principals are registered with the CFTC either.

Under US law, we therefore have Defi Synergy and its principals committing securities and commodities fraud.

Securities fraud and commodities fraud go hand in hand with Ponzi schemes. In a nutshell, J. Scott Whitney and Bob Bearden have created their own version of NovaTechFX.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Defi Synergy of ROI revenue, eventually prompting a collapse.

The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.

Look no further than NovaTechFX’s collapse to see this in action.

 

Update 10th March 2024 – Defi Synergy has collapsed.