In the world of cryptocurrency, a new scam has emerged, masquerading as a legitimate investment opportunity and today please Meet Defily, a platform that promises passive returns through AI trading bot.
But beware, this is a classic Ponzi scheme, designed to part unsuspecting investors from their hard-earned money.
A Review of Parwiz Daud’s Latest Scam
Parwiz Daud, a serial MLM crypto Ponzi fraudster, is the mastermind behind Defily.
Daud has a history of running scams, including OneCoin and Validus, which collapsed in April 2023.
Despite regulatory warnings, Daud has launched Defily, another Ponzi scheme that promises unusually high returns.
How Does Defily Work?
Defily has no retailable products or services, and affiliates can only market Defily affiliate membership itself.
The platform offers various investment plans, ranging from $100 to $1,000,000, with promised passive returns.
However, the returns are not generated through legitimate trading, but rather through recruiting new investors.
The Compensation Plan
Defily’s compensation plan is designed to incentivize affiliates to recruit new investors.
The plan includes a binary structure, where affiliates earn commissions on the investments made by their recruits.
The commissions range from 10% to 20%, depending on the rank achieved.
Get to understand the Red Flags
Several red flags indicate that Defily is a Ponzi scheme:
– No Legitimate Products or Services: Defily has no products or services to sell, and affiliates can only market the Def
– Unrealistic Returns:The promised returns on investment are unusually high and unsustainable.
– Lack of Transparency: Defily fails to provide ownership or executive information on its website.
– Securities Fraud: Defily’s passive returns investment scheme constitutes a securities offering, but the platform fails to provide evidence of registration in any jurisdiction.
The Inevitable Collapse
Like all Ponzi schemes, Defily is doomed to collapse.
Once affiliate recruitment dries up, new investment will cease, and the platform will be unable to pay returns.
When this happens, the majority of participants will lose money.
How to Protect Yourself
To avoid falling victim to Defily and other Ponzi schemes, it’s essential to be cautious and do your research. Here are some tips:
– Be wary of unusually high returns:If an investment opportunity seems too good to be true, it probably is.
– Research the company:Look for transparency and legitimacy in the company’s operations and leadership.
– Beware of recruitment-focused schemes:Ponzi schemes often rely on recruiting new investors to pay earlier investors.
By being vigilant and informed, you can protect yourself from falling prey to this ponzi and other scams
