Linxella Review: NextGen Academy scammers launch own Ponzi
Linxella fails to provide ownership or executive information on its website.
Linxella’s website domain (“linxella.io”), was privately registered on July 31st, 2023.
Over on social media we learn Linxella’s co-founders are Rohit Sharma, Magda Karapetyan, Azad Mohammad and Haider Mustafa.
Rohit Sharma and Magda Karapetyan are in a relationship. Outside of that all of Linxella’s co-founders are former UK promoters of the collapsed NexGen Ponzi scheme.
It should be noted that, as of October 8th, the FCA banned MLM cryptocurrency investment schemes in the UK.
Other names of note in Linxella are Michael Tornquist and Merja Laiho.
Tornquist and Laiho appear to be responsible for Linxella recruitment in Europe.
The use of UAE time on Linxella’s marketing promos suggests that it might have ties to 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.
BehindMLM’s guidelines for Dubai are:
- If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
- 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 Linxella, read on for a full review.
Linxella has no retailable products or services.
Affiliates are only able to market Linxella affiliate membership itself.
Linxella’s Compensation Plan
Linxella affiliates invest tether (USDT) into LCSP points.
Linxella represents that 1 LCSP point is equal to 1 USDT.
There are eight Linxella investment tiers available:
- 500 USDT
- 1000 USDT
- 5000 USDT
- 10,000 USDT
- 50,000 USDT
- 100,000 USDT
- 500,000 USDT
- 1,000,000 USDT
Investment is done on the promise of an advertised 3% to 10% monthly passive return.
Note that Linxella’s investment contracts run for 40 months, after which Linxella keeps the initial investment.
The MLM side of Linxella pays on recruitment of affiliate recruitment.
Linxella Affiliate Ranks
There are eleven affiliate ranks within Linxella’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as a Linxella affiliate and invest
- Planner – invest at least 1000 USDT, recruit two affiliates and generate at least 25,000 USDT in total downline investment volume
- Coordinator – invest at least 5000 USDT, recruit four affiliates and generate at least 100,000 USDT in total downline investment volume
- Contributor – invest at least 10,000 USDT, recruit eight affiliates (two must be Coordinator or higher), and generate at least 500,000 USDT in total downline investment volume
- Manager – invest at least 50,000 USDT, recruit sixteen affiliates (four must be Contributors or higher), and generate at least 2,500,000 USDT in total downline investment volume
- General Manager – maintain a 50,000 USDT investment, recruit thirty-two affiliates (four must be Manager or higher), and generate at least 10,000,000 USDT in total downline investment volume
- Director – invest 100,000 USDT, recruit an undisclosed number of affiliates (assumed to be sixty-four), and generate 25,000,000 USDT in total downline investment volume
- President – not disclosed
- Vice President – not disclosed
- Executive Vice President – not disclosed
- Chief Facility Officer – not disclosed
Note that no more than 50% of required downline investment volume can come from any one unilevel team leg.
Also note that Linxella don’t currently appear to have a complete compensation plan:
As such I’ve omitted any President and higher commissions and bonuses (they aren’t disclosed).
Linxella pays referral commissions on USDT invested by personally recruited affiliates based on rank:
- Affiliates and Planners earn a 10% referral commission
- Coordinators earn a 12% referral commission
- Contributors earn a 14% referral commission
- Managers earn a 16% referral commission
- General Managers earn an 18% referral commission
- Directors earn an undisclosed referral commission (20%?)
Recurring Monthly Income
Coordinator and higher ranked Linxella affiliates earn a “Recurring Monthly Income”
- Coordinators receive 0.1%
- Contributors receive 0.2%
- Managers receive 0.3%
- General Managers receive 0.4%
- Directors receive an undisclosed RMI percentage (0.5%?)
Note that it’s unclear what Recurring Monthly Income is paid out on. Presumably it’s downline investment or a percentage match of returns paid out.
Linxella takes an undisclosed percentage of investment funds and uses them to pay virtual shares.
Affiliates receive shares based on how much they’ve invested:
- invest $500 and receive 0.005 of a share
- invest $1000 and receive 0.01 of a share
- invest $5000 and receive 0.05 of a share
- invest $10,000 and receive 0.1 of a share
- invest $50,000 and receive 0.5 of a share
- invest $100,000 and receive one share
- invest $500,000 and receive 5 shares
- invest $1,000,000 and receive 10 shares
Each share payout is $100,000 total. How frequently shares are paid out on is not disclosed.
Rank Achievement Bonus
Linxella rewards Planners and above with the following Rank Achievement Bonuses:
- qualify at Planner and receive a “5 star holiday”
- qualify at Coordinator and receive “all Apple products”
- qualify at Contributor and receive a “Linxella kit” and Rolex watch
- qualify at Manager and receive a Lamborghini Aventador
- qualify at General Manager and receive a “Linxella apartment”
- qualify at Director and receive a “Linxella villa” and “life transformation”
Fast Start Bonus
Linxella’s Fast Start Bonus is a recruitment incentive active within thirty and ninety day deadlines.
- generate 500,000 USDT in downline investment volume within thirty days of signing up, and receive a Mercedes Benz S Class
- generate 5,000,000 USDT in downline investment volume within ninety days of signing up, and receive a Mercedes Benz G Class and $10,000
Note that no more than 50% of required downline investment volume can be counted from any one recruitment leg.
Linxella affiliate membership is free.
Full participation in the attached income opportunity requires a minimum 1000 USDT investment.
Linxella is the familiar story of Ponzi promoters realizing the real money is in running Ponzi schemes.
And so we have Linxella, which has all the common external revenue ruses attached to it:
No verifiable evidence of Linxella paying withdrawals with external revenue of any kind is provided.
That’s because, like NextGen and all the reboots before it, there isn’t any.
Linxella is a simple NextGen Academy Ponzi spinoff, targeting victims of the collapsed scam.
This is evident by Linxella’s lofty investment tiers and rank requirements. If we look at the Fast Start Bonus, Linxella’s co-founders are expecting people to drum up 25 million in just 90 days.
Even if you try to pillage NextGen Academy leftovers, that’s just not happening.
Of additional concern is Linxella soliciting investment in USDT but paying returns in LCSP. LCSP must be converted to USDT within Linxella. It is otherwise worthless outside of the scheme.
This matters because it gives Linxella’s co-founders a buffer against collapse. In that they can just turn off withdrawals when they feel like it, and instantly backoffice LCSP balances are worthless.
On the regulatory front we’ve already covered the FCA banning MLM cryptocurrency investment schemes in the UK. That leaves Dubai, which is problematic in and of itself.
Linxella fails to provide evidence it has registered its passive returns investment scheme with financial regulators in any jurisdiction.
This means that at a minimum, Linxella, it’s co-founders and promoters are committing securities fraud.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Linxella of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.