S-Group Review: Sincere Systems Ponzi scheme rebooted
Sincere Systems launched in late 2019. It was a simple token Ponzi scheme, centered around “sincere tokens”.
Sincere Systems made a showing of being a “UK company”, but in reality was run by Russian and/or Ukrainian scammers.
Sincere Systems collapsed in mid 2021. In August 2021 the Ponzi scheme was rebooted as “S-Group”.
S-Group continues the UK company charade, referring to itself as a “British Investment” company.
It’s not that hard to catch S-Group out in its corporate lie:
S-Group provides no company ownership information on its website.
Scammers heading up the company’s marketing efforts are mostly from Russia and the Ukraine.
Alexa currently ranks Russia and the Ukraine as the only notable sources of traffic to S-Group’s website (57% and 15% respectively).
This is in line with Sincere Group’s Alexa traffic estimates, although it seems recruitment outside of Russia and Ukraine has mostly collapsed.
In August 2021, the Bank of Russia issued a pyramid scheme warning for Sincere Systems and S-Group.
Sincere Systems is referenced by name. S-Group’s website domain is included in the list of offending URLs.
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.
S-Group’s Products
S-Group has no retailable products or services.
Affiliates are only able to market S-Group affiliate membership itself.
S-Group Compensation Plan
S-Group affiliates invest in s-token (SNT), on the promise of a percentage of the posted monthly return.
- invest $100 to $499 in SNT and receive 50% of the monthly ROI generated
- invest $500 to $1499 in SNT and receive 60% of the monthly ROI generated
- invest $1500 to $4999 in SNT and receive 65% of the monthly ROI generated
- invest $5000 to $9999 in SNT and receive 70% of the monthly ROI generated
- invest $10,000 to $24,999 in SNT and receive 75% of the monthly ROI generated
- invest $25,000 to $49,999 in SNT and receive 80% of the monthly ROI generated
- invest $50,000 or more in SNT and receive 85% of the monthly ROI generated
S-Group flogs SNT to affiliates at a rate of 10 cents each.
How much SNT an S-Group affiliate is able to store in their affiliate account is determined by how much they pay in annual subscription fees:
- Free – no fee, capped at 500 SNT
- Standard – $100 subscription fee, capped at 10,000 SNT
- Pro – $300 subscription fee, capped at 50,000 SNT
- Business – $500 subscription fee, capped at 100,000 SNT
- Premium – $1000 subscription fee, capped at 1,000,000 SNT
S-Group maintains Sincere Systems’ 15.5% monthly average ROI rate in its marketing.
SNT token staking is also available.
Staking sees affiliates invest 10,000 or more SNT on the promise of a thirty-day ROI.
The specific ROI rate isn’t provided. S-Group states it is determined based on how much SNT is invested into staking, and the “total amount of transactions in the blockchain”.
Withdrawal Penalties
S-Group penalizes affiliates for withdrawing their investment amount before twelve months.
- withdraw between 4 to 6 months and be penalized with a 30% withdrawal fee
- withdraw between 7 to 9 months and be penalized with a 20% withdrawal fee
- withdraw between 10 to 12 months and be penalized with a 10% withdrawal fee
- withdrawals made after twelve months receive no withdrawal penalty fee
Note that investments and mandatory locked for the first four months.
S-Group Affiliate Ranks
There are eleven ranks within S-Group’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Rank 1 – sign up as an S-Group affiliate and invest $100 in SNT tokens
- Rank 2 – personally invest or generate $3000 in downline SNT token investment volume
- Rank 3 – personally invest or generate $10,000 in downline SNT token investment volume
- Rank 4 – generate $25,000 in downline SNT token investment volume
- Rank 5 – invest $500 in SNT tokens and generate $50,000 in downline SNT token investment volume
- Rank 6 – invest $1000 in SNT tokens and generate $100,000 in downline SNT token investment volume
- Rank 7 – invest $5000 in SNT tokens and generate $500,000 in downline SNT token investment volume
- Rank 8 – invest $10,000 in SNT tokens and generate $1,000,000 in downline SNT token investment volume
- Rank 9 – invest $30,000 in SNT tokens and generate $3,000,000 in downline SNT token investment volume
- Rank 10 – invest $100,000 in SNT tokens and generate $10,000,000 in downline SNT token investment volume
- Rank 11 – invest $250,000 in SNT tokens and generate $25,000,000 in downline SNT token investment volume
Investment Referral Commissions
S-Group pays a referral commission on funds invested into SNT tokens by personally recruited affiliates.
SNT token investment referral commission rates are determined by S-Group affiliate rank:
- Rank 1 – 5%
- Rank 2 – 7%
- Rank 3 – 9%
- Rank 4 – 10.5%
- Rank 5 – 12%
- Rank 6 – 13%
- Rank 7 – 14%
- Rank 8 – 14.5%
- Rank 9 – 15%
- Rank 10 – 15.5%
- Rank 11 – 16%
Residual Commissions
S-Group 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.
S-Group caps payable unilevel teams at ten.
Referral commissions are paid out as a percentage of S-Token staking returns paid to downline affiliates across these ten levels.
How many levels S-Group pays residual commissions on is determined by how much an affiliate pays in subscription fees:
- Standard tier affiliates earn 5% on level 1 (personally recruited affiliates)
- Pro tier affiliates earn 5% on levels 1 to 3
- Business tier affiliates earn 5% on levels 1 to 5
- Premium tier affiliates earn 5% on levels 1 to 10
Marketing Plan Bonus
S-Group sets aside 1.375% of company-wide investment each month and distributes it across four bonus pools.
- generate one Rank 11 downline affiliate and $5,000,000 in monthly downline SNT token investment volume = one share in a 0.5% Marketing Plan Bonus pool
- generate three Rank 11 downline affiliates and $3,000,000 in monthly downline SNT token investment volume = one share in a 0.5% Marketing Plan Bonus pool
- generate five Rank 11 downline affiliates and $1,000,000 in monthly downline SNT token investment volume = one share in a 0.25% Marketing Plan Bonus pool
- generate ten Rank 11 downline affiliates = one share in a 0.125% Marketing Bonus Pool
Note a few additional Marketing Plan Bonus caveats apply:
- up to one Rank 11 downline affiliate is counted per unilevel team leg
- downline SNT token investment volume is counted from all unilevel team legs, excluding those with the required Rank 11 downline affiliates
Rank Achievement Bonus
S-Group rewards affiliates who qualify at Rank 4 and higher with a one-time Rank Achievement Bonus:
- qualify at Rank 4 and receive $1000
- qualify at Rank 5 and receive $2000
- qualify at Rank 6 and receive $5000
- qualify at Rank 7 and receive $20,000
- qualify at Rank 8 and receive $50,000
- qualify at Rank 9 and receive $150,000
- qualify at Rank 10 and receive $500,000
- qualify at Rank 11 and receive $1,000,000
Joining S-Group
S-Group affiliate membership is tied to an annual subscription:
- Free – no fee
- Standard – $100 subscription fee
- Pro – $300 subscription fee
- Business – $500 subscription fee
- Premium – $1000 subscription fee
The more an S-Group affiliate pays in fees, the higher their income potential.
Full participation in S-Group’s income opportunity also requires a minimum $100 investment in SNT tokens.
S-Group Conclusion
S-Group is a more fleshed out version of the original Sincere Systems Ponzi scheme.
SNT token has been realized and integrated into Sincere Systems’ ~15.5% a month investment scheme.
Staking has been added, providing an additional monthly return for those who don’t want to lock up funds for the four month minimum.
Securities fraud is still an issue. S-Group is not registered to offer securities in any jurisdiction.
This would require S-Group to provide audited financial reports, which they can’t do because S-Group is a Ponzi scheme.
Even if you put aside the obvious and take S-Group’s ROI claims at face value, the numbers don’t add up.
On December 4th S-Group celebrated two years of business in Dubai, the MLM scam capital of the world.
If we take an advertised 15.5% average monthly return and compound that for 24 months;
- $1000 compounded daily turns into $36,275 (502% annually)
- $1000 compounded monthly turns into $27,625 (435% annually)
- $50,000 compounded monthly turns into $1.7 million (502% annually)
- $50,000 compounded monthly turns into $1.3 million (435% annually)
Anyone with a trading bot able to consistently generate 15.5% a month on average would be quietly running it for themselves.
You’re certainly not going to find access to such a bot for as little as $100 in hokey Ponzi tokens out of Ukraine.
The pyramid nature of S-Group exists by way of new investors being required to keep the scam going.
New investors bring in new investment, without which S-Group collapses (again).
As with all MLM Ponzi schemes, the majority of participants are mathematically guaranteed to lose money.
Update 22nd June 2023 – S-Group has collapsed. Withdrawals were disabled on June 10th.
Before making a scam report like you did is better for you to chose your words make homework and better resarch!!
I’m with this company since December 2020 invested only 2000$ , today my account balance is over 20K$ !!!! I already withdraw 6220$ !!! and soon in about 2 weeks I will have my 3rd bonus of 5K$.
So your article is a pony one !!
“S-Group provides no company ownership information on its website.” PURE LIE of you !!
You stealing money doesn’t change S-Group being a Ponzi scheme.
Why would you even bother trying this?
Jan 12th, 2022 – no company ownership details @ “s-group.io”
The take-away from your comment is S-Group is full of braindead thieves.
Denial of profiting from a pyramid selling, Ponzi scam will not absolve you from criminal responsibility, should fraud investigators and law enforcement agencies come knocking!
Thank you for your detailed report.
So could S-Group be a long running scheme? Just because it is not in the US and mostly in Europe?
What can be done about it?
Filing complaints with local authorities is a long shot.
Failing which, like all MLM Ponzi schemes, S-Group will collapse when new investment runs dry.
I know someone who’s been ‘investigating’ in this I think since Sincere Systems, and making the usual claims about massive profits etc. on social media. However, when asked whether or not they’d withdrawn more than they paid in, deleted the conversation thread.
I also find it very interesting that Drew Burton seems to be managing the English language PR/marketing – person I know has been joining Burton promoted ponzis since at least 2016.
Finally, ignoring S-Group’s claims of 90,000+ members etc. Their token (S-Wallet Protocol/SWP – also seem to be other versions, which I think S-Group has used for direct theft going by inconsistencies/changes to their telegram feed) only has 2100 holders, which I’m assuming is better indicator of true membership numbers?
Better yes but holders is just wallets I think. One person can own multiple wallets.
Want to know about sincere.
Read the review.
You are wrong about s-group. I’m investor and withdrawing every month. It is not ponzi!
Whether you’re stealing money from S-Group or not it’s still a Ponzi scheme.
Ponzi schemes are Ponzi schemes before and after they inevitably collapse.
For interest, I think this is in its death-throws. S-Wallet.ai has seemingly been ‘down for maintenance’ since 06/14/23, and Drew Burton’s been posting about how great it will be once up and running again on YouTube (I refuse to watch his rambling ponzi shilling in full, but periodically check his videos and associated comments).
S-group also appears to have launched a new ponzi called s-trade that isn’t compatible with S-wallet.
Thanks for the heads up. Looks like an exit-scam but they’re leaving the door open for a reboot.
Looks like they pulled access on the 10th. That’s not routine mainetenance.
Good research. There’s more to it, but you’ve revealed the main points.
S-Group is a fraudulent company, if someone approaches you presenting this “amazing” investment opportunity please do run as fast as you can, and please strongly advise the same to the promoter!
I am someone speaking from my own personal experience, i have lost significant amount of funds with this company. After joining everything worked well, and my life did improve greatly for a year, and then it started..
first S-Wallet (their crypto wallet where u need to exchange your € into their own tokens in order to make the investment) went out for a mainetaince for a whole month, couldn’t move any funds around. Then after it finally came back, they told us there’s audit.
There’s some claims against the company that they need to fight against and for that time the funds are frozen on the broker account… So we’ve been waiting for the last 8 months already.
I believe it’s safe to say that me and other company clients who made investments in this direction will never get the Investments back and i am here to tell you – RUN, if someone approaches you to join this scam company.