SHA-256 Review: Crypto mining Ponzi scheme
SHA-256 provides no information on its website about who owns or runs the company.
SHA-256’s website domain (“sha-256.io”) was privately registered on October 5th, 2020.
SHA-256’s official Facebook page is being managed from Bangladesh and the Philippines.
Not sure about the Philippines but on SHA-256’s official YouTube channel, the first videos uploaded are testimonials from guys with strong Indian accents.
Seeing as Bangladesh neighbors India, the accent is likely from the same region.
This strongly suggests that whoever is running SHA-256 operates out of Bangladesh.
In an attempt to appear legitimate, SHA-256 provides incorporation details for SHA 256 LTD.
SHA 256 LTD is a shell company incorporated in the Marshall Islands. The Marshall Islands is a scam-friendly jurisdiction with little to no active regulation of corporate fraud.
For the purpose of MLM due-diligence, Marshall Islands shell incorporation should be ignored.
Based on Alexa website traffic analysis, SHA-256 is currently being promoted in Angola (30%), Russia (10%) and Venezuela (8%).
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.
SHA-256 has no retailable products or services, with affiliates only able to market SHA-256 affiliate membership itself.
SHA-256’s Compensation Plan
SHA-256 affiliates invest bitcoin, ethereum, litecoin and dogecoin on the expectation of a passive return.
Minimum SHA-256 investment amounts are:
- bitcoin – $12.50
- ethereum – $17
- litecoin – $12
- dogecoin – $15
SHA-256 claims to pay returns daily. Investment is made for a fixed term, however these terms are no disclosed on SHA-256’s website.
SHA-256 pays a base 5% referral commission on invested funds.
SHA-256 representative affiliates earn referral commissions down three levels of recruitment (unilevel):
- 10% on level 1 (personally recruited affiliates)
- 4% on level 2
- 2% on level 3
To qualify as a representative, SHA-256 affiliates have to spam social media:
If you feel your social sway can be used to introduce the joy of cloud crypto mining to people around the world, we want to hear from you.
We can’t welcome just anyone into our exclusive Representative tier. But how will you ever know if you don’t apply?
SHA-256 affiliate membership is free.
Participation in the attached income opportunity however requires investment in bitcoin, ethereum, litecoin or doge.
Investment contracts are not disclosed on SHA-256’s website.
SHA-256 claims to be “one of the world’s largest and most reliable cloud mining companies”.
Cloud mining is the ruse behind the companies advertised passive investment scheme:
The company and mining facilities were established in the Republic Of Marshall Islands.
Unfortunately, further details and map information can not be shared due to security reasons.
Naturally there’s no evidence of SHA-256 engaging in mining activity. The best you’re going to get is the usual social media marketing, which is meaningless.
The bottom line is SHA-256 is run by persons unknown and isn’t registered to offer securities in any jurisdiction.
Registering to offer securities in the countries it solicits investment in, would require SHA-256 to file periodic audited financial reports.
This is the only way to verify SHA-256 isn’t recycling invested funds to pay returns.
Conversely, the only reason SHA-256 opts to operate illegally is because that’s exactly what it’s doing.
Despite running a Ponzi scheme, SHA-256 falsely claims on its website that it is “audited and regulated”. No specific details are provided.
In any event with new investment the only verifiable source of revenue entering SHA-256, the company operates as a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve SHA-256 of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
They must have no idea how big the Marshall Islands are to claim there’s mining facilities there haha
I’d imagine the scammers behind SHA-256 know. They’re just counting on MLM crypto knuckledraggers having no idea.
I can see them already claiming “most cryptographers recommended the usage of sha-256” -__-
Can’t they at least find an unused name ?
Used name makes it easier to hide yourself from searches.
But it’s a double-edged sword as you’re totally relying on Ponzi scammers to market for you.