DexNet operates in the cryptocurrency MLM niche.

The company is headed up by founder and CEO Aleksey Kedo.

Kedo, who appears to be a Russian national, is known to BehindMLM as a top promoter of Kairos Technologies Ponzi scheme.

Following multiple regulatory fraud warnings and regulatory enforcement actions across Europe, Kairos Technologies collapsed in September 2016.

Authorities in Belarus made thirty Kairos Technologies related arrests later that same month.

Nonetheless what was left of Kairos Technologies limped along.

In January 2017 Turkish authorities concluded Kairos Technologies was an illegal pyramid scheme. Finally in January 2018, what was then left of Kairos Technologies was disposed through a failed ICO exit-scam.

DexNet’s other founder Igor Botnari, appears to be a random crypto bro with the usual failed businesses under his belt.

These include:

  • FixOne – failed cryptocurrency exchange, no website traffic
  • ProfixOne Capital – website disabled
  • FixOne Global – failed trading scheme, website disabled
  • One Token – failed crypto investment Ponzi offering 65% annually
  • Teroxx – failed crypto trading scheme, no website traffic
  • Abloxx – failed shit token Ponzi promising 8% a quarter for 5 years
  • Toqunia – another collapsed crypto scheme of some sort, website abandoned years ago

DexNet operates from three known website domains:

  • dexnet.one – privately registered on February 3rd, 2023
  • dexnet.info – privately registered on June 9th, 2023
  • dexfreedom.com – registered by Seychelles shell company Solutions Innovation on March 16th, 2023

As of February 2024, SimilarWeb tracked top sources of traffic to DexNet’s .ONE domain as Russia (30%), Ukraine (16%), Germany (13%), the UK (12%) and Moldova (11%).

Top sources of traffic to DexNet’s .INFO domain over the same period are Russia (39%), Malaysia (22%), Germany (22%) and the UK (17%).

Top sources of traffic to DexNet’s .COM domain over the same period are Latvia (50%), Russia (40%), Germany (6%) and Ukraine (4%).

On its .ONE domain, DexNet represents it operates as “Dexnet Information Technology CO” out of Dubai.

Due to the proliferation of scams and failure to enforce securities fraud regulation, BehindMLM ranks Dubai as the MLM crime capital of the world.

DexNet’s website specifically suggests it is under the protection of Sheikh Majid Rashid Al Mualla.

BehindMLM’s guidelines for Dubai are:

  1. If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
  2. If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.

If you want to know specifically how this applies to DexNet, read on for a full review.

DexNet’s Products

DexNet sells Android boxes for $1499 retail. Affiliates pay $999.

The boxes are purchased in tether ($1 = 1 USDT).

DexNet’s Android boxes are primarily used to mine XNET, an inhouse token DexNet created.

Users receive a reward in XNet tokens for ensuring smooth operation of DEX Node devices.

The more DexNet android boxes invested in and connected to the internet, the higher the XNET ROI paid out (click to enlarge):

Instead of cashing out XNET, DexNet has investors place them into a “Profit Sharing Pool”. The minimum amount that can be invested into the Profit Sharing Pool is 500,000 XNET.

The Profit Sharing Pool is purportedly made up of 10% of DexNet Android purchases, paying a passive return to investors as long as new devices continue to be invested into.

Also note that every 150,000 invested XNET into the Profit Sharing Pool doubles a DexNet retail customer’s or affiliate’s Android box XNET ROI rate.

DexNet pays all commissions and bonuses in USDT.

DexNet’s Compensation Plan

DexNet’s compensation plan revolves around the sale of Android boxes to retail customers and recruited affiliates.

Note that DexNet’s compensation documentation suggests affiliates can earn up to 500% on their $999 Android Box purchase ($4995).

The package is valid until you earn x5. Then reactivation (purchase of a new package) takes place without purchasing new equipment.

As above, affiliates pay $999 per $4995 earned but don’t receive a new Android box after their initial investment.

DexNet Affiliate Ranks

There are ten affiliate ranks within DexNet’s compensation plan.

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

  1. Freedom 1 – generate $50,000 in accumulated weaker binary team side volume
  2. Freedom 2 – generate $250,000 in accumulated weaker binary team side volume
  3. Freedom 3 – generate $500,000 in accumulated weaker binary team side volume
  4. Freedom 4 – generate $1,000,000 in accumulated weaker binary team side volume
  5. Freedom 5 – generate $3,000,000 in accumulated weaker binary team side volume
  6. Freedom 6 – generate $6,000,000 in accumulated weaker binary team side volume
  7. Freedom 7 – generate $10,000,000 in accumulated weaker binary team side volume
  8. Freedom 8 – generate $25,000,000 in accumulated weaker binary team side volume
  9. Freedom 9 – generate $50,000,000 in accumulated weaker binary team side volume

Referral Commissions

DexNet affiliates earn a 7% commission on Android boxes sold to personally referred retail customers and recruited affiliates.

Residual Commissions

DexNet pays residual commissions via a binary compensation structure.

A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):

The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).

Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.

Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.

At the end of each day DexNet tallies up new Android box sales revenue and subsequent affiliate $999 payment volume.

Affiliates are paid 7% of new volume generated on their weaker binary team side.

Note that

  • DexNet affiliates must recruit two affiliates to qualify for residual commissions; and
  • residual commissions are capped at $15,000 a day

Residual Commissions Matching Bonus

DexNet pays a Matching Bonus 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.

DexNet caps the Matching Bonus at ten unilevel team levels.

The Matching Bonus is paid as 1% of earned residual commissions by downline affiliates across these ten levels.

Token ROI Matching Bonus

DexNet pays a match on XNET token returns generated by downline Android boxes.

The Token ROI match appears to be capped at an affiliate’s top ten recruitment legs (the legs receiving the highest XNET token returns).

  • 1 Android box in downline = XNET token ROI match from one recruitment leg
  • 1 retail Android box sale in downline or three downline purchases = XNET token ROI match from two recruitment legs
  • 10 Android box sales in downline = XNET token ROI match from three recruitment legs
  • 30 Android box sales in downline = XNET token ROI match from four recruitment legs
  • 60 Android box sales in downline = XNET token ROI match from five recruitment legs
  • 150 Android box sales in downline = XNET token ROI match from six recruitment legs
  • 200 and fifty Android box sales in downline = XNET token ROI match from seven recruitment legs
  • 500 Android box sales in downline = XNET token ROI match from eight recruitment legs
  • 1000 Android box sales in downline = XNET token ROI match from nine recruitment legs
  • 1500 hundred Android box sales in downline = XNET token ROI match from ten recruitment legs

Using the above criteria, DexNet pays the XNET token ROI match based on the total number of active Android box devices across their downline:

  • up to 1000 active Android boxes = 3% ROI match rate
  • up to 10,000 active Android boxes = 2% ROI match rate
  • up to 100,000 active Android boxes = 1.5% ROI match rate
  • up to 1,000,000 active Android boxes = 1% ROI match rate
  • up to 10,000,000 active Android boxes = 0.5% ROI match rate

Note DexNet’s compensation documentation cites 1,000,000 boxes for both the 1% and 0.5% match rate. Given the x10 multiplier used for every other tier, I figure the 0.5% match rate is 10 million boxes.

Fast Start Bonus

DexNet affiliates earn a $300 Fast Start Bonus per affiliate recruited in their first month.

Note the Fast Start Bonus is capped at recruitment of six affiliates ($1500).

Bonus Pools

Freedom 9 and Freedom 10 ranked affiliates qualify for shares in two Bonus Pools.

Each Bonus Pool is made up of 1% of DexNet’s company-wide revenue.

The two Bonus Pools correspond with the ranks Freedom 9 and Freedom 10 respectively.

Rank Achievement Bonus

DexNet rewards affiliates for qualifying at Freedom 1 and higher with the following one-time Rank Achievement Bonuses:

  • qualify at Freedom 1 and receive an iPhone $1200
  • qualify at Freedom 2 and receive $2500
  • qualify at Freedom 3 and receive $5000
  • qualify at Freedom 4 and receive $15,000
  • qualify at Freedom 5 and receive $50,000
  • qualify at Freedom 6 and receive $100,000
  • qualify at Freedom 7 and receive $200,000
  • qualify at Freedom 8 and receive $500,000

Joining DexNet

DexNet affiliate membership is tied to a $999 Android box investment.

DexNet’s compensation documentation suggests for every $4995 earned in commissions, $999 must be paid to continue earning.

Note that no Android box is included with subsequent $999 DexNet affiliate fee payments.

Also note that while USD amounts are cited, DexNet operates in tether (USDT).

DexNet Conclusion

DexNet’s basic business model is selling grossly overpriced Android boxes to mine its own shit token.

XNET is a BEP-20 token. BEP-20 tokens can be created in a few minutes at little to no cost.

XNET specifically has no value outside of DexNet itself.

Attached to the DexNet’s XNET investment scheme is a FileCoin ruse, which I think is supposed to represent external revenue being generated.

The problem is DexNet readily admits all it does is recycle new investment to pay withdrawals.

DexNet’s Android boxes appear to be modified T95Z models. These can be had for under $18 each from AliExpress:

The devices are typically used as media players.

Even taking DexNet’s modifications into account (2 TB SSD, a wifi antenna and possibly a screen upgrade), at $1499 retail the boxes are still massively overpriced.

This leaves DexNet affiliates paying $999, which is still massively overpriced.

DexNet affiliates invest in its Android boxes to mine XNET. This is then dumped in a profit pool, through which a passive return is paid – purportedly funded by 10% of company-wide investment.

This constitutes a securities offering. The admitted recycling of invested funds to pay profit pool withdrawals additionally constitutes a Ponzi scheme.

This is best illustrated by DexNet requiring affiliates to reinvest $999 each time they earn $4995. There’s no reason for this fee (which doesn’t even include another Android box), other than to reduce money leaving DexNet.

DexNet also claims its Android boxes generate FileCoin through the IPFS network.

As a basic protocol for data transfer between Dex-nodes is used technology IPFS in its hardware implementation deprived of its disadvantages.

Long story short, the 2TB SSD is plugged into the IPFS network and purportedly generates revenue for DexNet.

Attached to this is DexNet’s MLM opportunity. Given the $1499 DexNet Android box retail price tag, it’s likely the majority of new revenue is coming from DexNet affiliates.

This would mean DexNet’s MLM opportunity is operating as a pyramid scheme.

Together we have suspected wire fraud, securities fraud and pyramid fraud violations. There is also the possibility of money laundering.

All of this is of course illegal in Dubai but Dubai’s authorities turn a blind eye.

Outside of the UAE DexNet is subject to securities, financial and consumer fraud regulation.

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

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

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