Again in June BehindMLM reported on Crowd1’s deliberate UK shell firm share dump.
It’s taken 4 months, however Crowd1 has lastly initiated what is perhaps an exit-scam.
As revealed in new advertising materials;
The Crowd1 Rewards programme is to be discontinued.
We’re happy to announce we’ve been in profitable discussions with Digital Companions Community plc of London (“DPN”) which is providing shares of their firm in trade in your Rewards.
When Crowd1 launched in 2019 the corporate solicited funding into digital shares. Affiliate traders have been informed they have been buying “proprietor rights” for the shares.
The enterprise mannequin was easy: spend money on digital shares and obtain a ROI.
Crowd1 paid the ROI out of subsequently invested funds, and so that you had your basic MLM Ponzi scheme.
As with all Ponzi schemes, ultimately recruitment dried up, possible resulting in withdrawals exceeding new funding.
Crowd1 ultimately slashed calculated returns. The corporate has been stringing affiliate traders alongside ever since.
Digital Companions Community is a UK shell firm Crowd1 arrange shortly after the unique June announcement.
UK company data present the corporate was included on July twenty seventh, 2021.
Listed officers of the corporate are John Moore and Leonard Martin Fertig. Randoms no person in Crowd1 has ever heard of.
Digital Companions Community’s included tackle is a digital workplace in London.
None of this could come as a shock. The UK is a favored jurisdiction for scammers to arrange shell firms in.
A Squarespace template web site has been swiftly put collectively for Digital Companions Community @ “digitalpartnersnetwork.co.uk”.
Placing apart the shell firm nonsense, to be able to promote shares Digital Companions Community must be registered with the FCA.
You possibly can search the FCA’s registry and ensure that, at time of publication, Digital Companions Community shouldn’t be registered with the FCA.
All that’s taking place is Crowd1 is swapping “proprietor’s rights” digital shares for Digital Companions Community digital shares.
Renaming an database asset can be only a few strains of code in Crowd1’s backoffice.
Crowd1 associates have been given seven days to manually decide out of share conversion. After which all “proprietor’s rights” digital shares company-wide will likely be transformed into Digital Companions Community digital shares.
No thought what occurs to anybody who does decide out. “Proprietor’s rights” digital shares have been nugatory for over a 12 months. That’ll keep the identical so I suppose they’ll simply be quietly forgotten about (once more).
As a part of their exit-scam, Crowd1 are additionally trotting out KYC:
In an effort to proceed the method and obtain your shares in DPN, please comply with the hyperlink beneath and obtain the App to your cell phone.
Later within the App there will likely be a requirement for a easy identification (KYC).
For the reason that early days Crowd1’s high scammers, largely from Europe, have focused third-world nations.
Africa was closely pillaged. Later India and south-east Asia have been focused.
Right now, as per Alexa, guests to Crowd1’s web site are largely from Azerbaijan (21%), Russia (18%) and Kazakhstan (9%).
Crowd1 implementing KYC after two years is little doubt going to trigger havoc. Which after all is the meant objective.
As to why that is taking place, Crowd1 explains;
The primary thrilling alternative for DPN, partnering with an organization within the funds trade, (together with a multiwallet) is in its closing negotiations stage and we’ll inform the DPN shareholders about this shortly.
Crowd1 revealed Multiwallet again in June, after they initially introduced the UK shell firm exit-scam.
Like Digital Companions Community, Crowd1 is sustaining the fiction MultiWallet is a third-party firm.
If we take a broader take a look at Crowd1’s trajectory, Digital Companions Community digital shares is the most recent in an extended line of failed ventures.
First Crowd1 had faux playing partnerships, then the app platform nonsense and Mark Seyforth’s failed MLM alternative merger.
Crowd1’s final ruse was the Planet IX crypto Ponzi. Crowd1 are nonetheless placing collectively sporadic dev replace movies out however no person is paying consideration.
Crowd1 associates need the returns they have been promised. And the bottom-line is Crowd1 can’t ship with out new funding.
Should you’re questioning why regulators haven’t put Crowd1 out of its distress, it’s not for lack of effort.
Sadly there was a definite lack of effort the place it mattered although.
Thus far Crowd1 has obtained regulatory consideration in Peru, New Zealand, Mauritius, South Africa, the Philippines, Norway, Namibia, Paraguay, Gabon, Vietnam, Cote d’Ivoire, Slovakia, Hungary and the Czech Republic.
This has killed off recruitment of traders in these jurisdictions.
Crowd1 is run by Jonas Erik Werner (proper). Johan Stael von Holstein signed on as CEO final 12 months.
After encouraging god is aware of what number of victims to speculate god is aware of what number of tens of millions into Crowd1, von Holstein cashed out and disappeared final November.
Each Werner and von Holstein are Swedish nationals. Thus far Swedish authorities have taken no motion towards Werner, von Holstein and Crowd1.
Makes an attempt to convey Werner to justice now are going to show tough, owing to him and the remainder of the Crowd1 workforce since fleeing to Dubai.
Dubai is an MLM rip-off safe-haven. The UAE has no lively regulation of MLM fraud.
UAE authorities don’t cooperate with overseas investigations and the nation has extraordinarily restricted extradition treaties.
Don’t count on a lot from the UK with respect to Digital Companions Community both.
The FCA has admitted it has no real interest in regulating MLM associated securities fraud.
To that finish I’m truly shocked Digital Companions Community hasn’t been registered with the FCA.
Assuming Digital Companions Community shares don’t pop up on Cyprus’ inventory trade or another dodgy jurisdiction, we would see Digital Companions Community debut on the London Inventory Change but.
Whichever trade it occurs on, getting Digital Companions Community listed can be the equal of a crypto public trade exit-scam.
Crowd1 associates can be left bagholding nugatory publicly tradeable shares. Werner and associates retire in Dubai to stay off nevertheless many tens of millions/billions they’ve stolen.