Massive Pyramid scheme?
His name is Hassan Mahmoud. CEO of eaconomy. Apparently he was featured in Forbes magazine on the 29th of August 2023. I couldn’t find any link to this magazine aside from what I presume to be a fake poster on his Instagram account.
I believe this guy has built a massive Ponzi scheme worldwide. How can we report it to the relevant authorities?
He’s one of those people that promises 5-20k+ a month if you do xyz, but one way they make money is by employing more people under them and charging them a fee to be part of his platform. Surely this is a ponzi.
following lol
There's a difference between a Ponzi and an MLM. Only one is illegal.
Thank you for your comment, this individual says he invests money via his AI algo on cryptos. Given this, would this qualify as a ponzi given he states returns of 10-100% a month?
Read the fucking definition of a Ponzi ffs. A Ponzi is when you receive money from investors, then use the money from Investor B to pay Investor A, claiming you made crazy returns.
Is that the case here? Never heard of this guy but since you mention crypto trading, those types usually sell "courses" to learn how to trade, which isn't illegal per se.
www. forexbrokerslab .com/is-eaconomy-scam/
It is a ponzi
(Remove space to access link, as a new user I can’t post links lol, just google it)
They sell "signals", i.e. a service, but do not receive money to invest from LPs. Not a Ponzi. Still a scam though, but a legal one. Only angle would be around pump & dump regulations but crypto is unregulated in that regard.
Just scrolled quickly to the bottom and they seem to offer an automated trading bot. If that's the case yes it could be. If you're keen to dig into them just understand between selling a service and managing money from investors and compare vs. the products they offer.
Hi thanks for commenting, you stated they are not receiving money from investors, I am not sure about institutional investors but know retail investors that put money in their investment fund which uses their “special” AI crypto trading bot
Shocked this is considered a legal scam, we live in dangerous times, most if not all of us on WSO are smart enough to not ever fall for these scams, but there are thousands of vulnerable victims out there, hope these guys all get arrested.
Yeah just updated my comment above, the automated bot product could qualify as Ponzi if Eaconomy manages the funds. If you want to investigate, check how often "returns" / "profits" are distributed and how often they can be redeemed. A Ponzi will allow investors to put money into the fund at any moment but will require them to wait a much longer period before being able to cash out (>1-6 month in that context maybe).
Basically those are the angles to dig into if you want to fuck them:
This is not a ponzi. Read the definition of a ponzi. I did some research Eaconomy is not an investment opportunity rather selling a “course” that you pay to get education and trading tools to help you become a retail trader. And it is a multi level marketing company. Customers are in control of their own funds at all times. Even through this “ai bot” it’s not as if they send the money to Eaconomy and are promised a return. Rather the customer has their own money in their own broker or exchange and use the expert advisor or “ bot”
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