In the world of cryptocurrency, scams and Ponzi schemes are rampant, preying on unsuspecting investors looking to make a quick profit and One such scheme that has caught our attention is X-Capital, a supposed crypto investment platform that promises unusually high returns.
But beneath its glossy surface, X-Capital is nothing more than a cleverly disguised Ponzi scheme.
X-Capital Lack of Transparency
A quick glance at X-Capital’s website reveals a glaring lack of transparency. The company fails to provide any verifiable information about its ownership or executive team.
Despite being registered in June 2024 and launching in September 2024, X-Capital falsely claims to have been in operation since 2018. This raises serious red flags about the company’s legitimacy.
Fake Executives and Stolen Identities
X-Capital’s website lists a team of executives, but none of them exist outside of the company’s website. The CEO, “George Chuen,” appears in a marketing video with a Malaysian or Singaporean accent, which ties in with X-Capital’s corporate address in Malaysia.
However, it’s likely that George Chuen is a fictional character or an actor hired to play the role. The sole registered shareholder of X-Capital DCI, Dmytro Sviatokha, has ties to organized crime and is suspected of running crypto scams through his wife, Alina Varakuta, also known as “Crypto Barbie.”
Learn Ponzi Scheme Characteristics
X-Capital’s business model exhibits all the characteristics of a Ponzi scheme. The company has no retailable products or services, and affiliates are only able to market X-Capital’s affiliate membership itself.
The compensation plan promises unusually high returns, ranging from 0.6% to 0.75% daily, depending on the investment package.
However, these returns are capped at 200%, after which new investment is required to continue earning.
MLM Structure
X-Capital’s compensation plan is based on a multi-level marketing (MLM) structure, which rewards affiliates for recruiting new investors.
The plan includes seven affiliate ranks, each with its own set of qualification criteria and referral commissions. However, this structure is designed to benefit only the top affiliates, while the majority of participants lose money.
Ranking Bonus
X-Capital’s Ranking Bonus system rewards higher-ranked affiliates with a percentage bonus, but the specifics of how this bonus is paid out are unclear.
It’s likely that the Ranking Bonus is coded to favor higher-ranked affiliates, further enriching them at the expense of others.
Dubai Connection
X-Capital’s connection to Dubai is another red flag. CryptoInvestar ranks Dubai as the MLM crime capital of the world, citing the city’s lack of enforcement of securities fraud regulations. If a company is based out of or represents it has ties to Dubai, it’s likely a scam.
Conclusion
X-Capital is a classic Ponzi scheme, designed to part unsuspecting investors from their hard-earned money. With its lack of transparency, fake executives, and MLM structure, X-Capital is a recipe for disaster.
The company’s connection to Dubai and ties to organized crime only add to the suspicion. Investors should steer clear of X-Capital and any other scheme that promises unusually high returns with little risk.
X-Capital Warning Signs
If you’re considering investing in X-Capital or any other company, watch out for these warning signs:
– Lack of transparency: Be wary of companies that fail to provide verifiable information about their ownership or executive team.
– Unusually high returns: If it seems too good to be true, it probably is.
– MLM structure: Be cautious of companies that prioritize recruitment over product sales.
– Ties to organized crime: If a company has connections to organized crime, it’s likely a scam.
– Dubai connection: Be wary of companies based out of or with ties to Dubai.
Investor Alert
If you’ve invested in X-Capital or any other Ponzi scheme, it’s essential to take action to protect yourself. Here are some steps you can take:
– Report the scam: File a report with the relevant authorities, such as the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC).
– Seek legal advice: Consult with a lawyer who specializes in securities law to explore your options for recovering your investment.
– Warn others: Share your experience with others to prevent them from falling victim to the same scam.
