Crypto Scam Report

Reported by : cheater888, 08/09/2020

Votes: 2 scam

Scam description
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. Paraiba markets itself as a “unique private bank”. Beyond a shell incorporation for “Unique Private Bank” in Moheli (one of the Comoro Islands), that is meaningless drivel. I’m not even going to get into the financial regulatory ramifications of pretending to be a bank, because beneath the marketing pitch Paraiba is your typical MLM crypto Ponzi scheme. Paraiba represents it generates return revenue via cryptocurrency trading. No evidence of trading is provided. Nor is there any evidence Paraiba uses external revenue of any kind to pay advertised returns. Furthermore by offering passive returns, Paraiba is offering a security. Securities in Honduras are regulated by the Central Bank of Honduras. Paraiba provides no evidence it has registered its securities offering with the Central Bank of Honduras, or any financial regulator for that matter. This means that, at a minimum, Paraiba is committing securities fraud and operating illegally. Add banking fraud to that, and we’re still not done. As it stands the only verifiable source of revenue entering Paraiba is new investment. Using new investment to pay affiliates a daily return makes Paraiba a Ponzi scheme. As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new invesmtent. This will starve Paraiba of ROI revenue, eventually prompting a collapse. The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money. STAY AWAY!
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