LiquidFuel Review: Securities fraud crypto trading scheme
LiquidFuel provides no information on their website about who owns or runs the company.
In fact as I write this, LiquidFuel’s public facing website is little more than an affiliate login page.
LiquidFuel’s website domain (“liquidfuel.io”) was privately registered on July 9th, 2018.
LiquidFuel’s EULA suggests the company is a “licensee” of LFXCR International, SRL.
No information about LFXCR International is provided. Nor does the company have a digital footprint.
Presumably LFXCR International is a recently set up shell company, incorporated in a dodgy jurisdiction.
LiquidFuel’s EULA supports this, as it goes on to state;
This agreement and any and all claims arising under this agreement shall be governed by the laws of Costa Rica.
Costa Rica is a scam-friendly jurisdiction with little to no regulation.
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.
LiquidFuel has no retailable products or services, with affiliates only able to market LiquidFuel affiliate membership itself.
LiquidFuel’s Compensation Plan
LiquidFuel affiliates pay a fee, which determined how much money they give LiquidFuel access to.
- Entry – $500 annual fee plus $100 monthly fee (able to trade up to $5000)
- Novice – $1000 annual fee plus $100 monthly fee (able to trade up to $15,000)
- Intermediate – $2500 annual fee plus $100 monthly fee (able to trade up to $50,000)
- Professional – $6500 annual fee (able to trade up to $100,000)
LiquidFuel has six affiliate ranks within their compensation plan.
Along with their respective qualification criteria, they are as follows:
- Level 1 – sign up as a LiquidFuel affiliate
- Level 2 – not provided
- Level 3 – generate $5000 or more in recruited affiliate fee volume a month or sign up with a Pro Package
- Level 4 – generate $20,000 or more in recruited affiliate fee volume a month
- Level 5 – purchase an Intermediate or higher package and generate $40,000 or more in recruited affiliate fee volume a month
- Level 6 – purchase a Pro package and generate $80,000 or more in recruited affiliate fee volume a month
Note that recruited affiliate fee volume is the entire downline, not just personally recruited affiliates.
LiquidFuel pays referral 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.
LiquidFuel caps payable unilevel team levels at six.
Referral commissions appear to paid out as a percentage of fees paid by affiliates across these six levels as follows:
- Level 1 rank – 12% on level 1 of the unilevel team (personally recruited affiliates)
- Level 2 rank – 12% on level 1 and 8% on level 2 of the unilevel team
- Level 3 rank – 12% on level 1, 8% on level 2 and 6% on level 3 of the unilevel team
- Level 4 rank – 12% on level 1, 8% on level 2, 6% on level 3 and 4% on level 4 of the unilevel team
- Level 5 rank – 12% on level 1, 8% on level 2, 6% on level 3, 4% on level 4 and 2% on level 5 of the unilevel team
- Level 6 rank – 12% on level 1, 8% on level 2, 6% on level 3, 4% on level 4 and 2% on levels 5 and 6 of the unilevel team
LiquidFuel affiliate membership is tied to the purchase of a package:
- Entry – $500 annually and $100 a month
- Novice – $1000 annually and $100 a month
- Intermediate – $2500 annually and $100 a month
- Professional – $6500 annually
How much a LiquidFuel affiliate spends on membership directly impacts their income potential.
Note that there is also a Starter trial membership.
Trial LiquidFuel affiliate memberships expire in fourteen days, after which a paid annual package must be purchased.
LiquidFuel claim to generate returns for their affiliates through
algorithms that focus on strategies that seeks to leverage the volatility of the crypto market in order to increase the fiat currency equivalent balance of your holdings for consistent and clearly identifiable returns.
In short, LiquidFuel affiliates sign up, pay fees and hand over access to funds to LiquidFuel.
This is done on the representation LiquidFuel, through use of its trading bots, will generate a passive return for the affiliate.
To shorten LiquidFuel’s business model even further, it’s a securities offering.
To operate legally, LiquidFuel is required to register itself with financial regulators in any jurisdiction it operates in.
There is no evidence provided on the LiquidFuel website to suggest they have done so.
Registration with financial regulators would require LiquidFuel to make legally required disclosures to their affiliate investors.
- who developed their trading bots;
- a verifiable trading history of their bots;
- who owns and runs LiquidFuel itself;
- audited proof the company isn’t using its bots to trade between themselves and create the illusion of legitimate trading.
Without these disclosures, take any marketing material presented by LiquidFuel and their affiliates with a grain of salt.
In addition to securities fraud, the other major flag LiquidFuel’s MLM opportunity presents is that it’s
NOT AVAILABLE TO CUSTOMERS LOCATED IN THE UNITED STATES OR ITS TERRITORIES.
Neither selling access to a trading bot or trading on behalf of your affiliates is illegal in the US, provided you’ve registered with the SEC.
There is no legitimate reason for LiquidFuel to not operate in the US or register with securities regulators in other countries, unless they aren’t doing what they claim they are.
On that note, I’ll draw your attention to this warning presented to LiquidFuel affiliates:
Starting the LiquidFuel algorithm on Binance may trade with YOUR FULL ACCOUNT BALANCE.
This means that any digital assets of cryptocurrencies in your exchange account on Binance may be traded, liquidated, or rebalanced automatically.
When the scammers behind LiquidFuel decide they’ve got enough money in the pot (affiliate accounts), they simply liquidate the accounts and do a runner.
This is exactly what recently happened with the Mia trading scheme.
One day Mia affiliates woke up and found their accounts liquidated. Or more accurately, Mia’s anonymous admins cashed out via rigged bot trades.
And just like that it was “sorry for your loss” and onto the next scam.
If an MLM trading company isn’t willing to operate legally, don’t give them access to your money.