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 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”.
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%
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
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 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.