Sunday, September 23, 2018

Russia's Central Bank exposes Cashberry crypto Ponzi Fraud

Companies operating under the name of Cashberry appeared to be enjoying spectacular success, but the Central Bank of the Russian Federation found it to be a classic Ponzi scam.

Cashberry's business was based on multilevel marketing. They posed as a P2P investment platform where lenders and borrowers meet. Cashberry used aggressive marketing techniques, pushy advertising, and offered investments with high guaranteed returns. Targeting ordinary people, they set a minimum deposit requirement at 1,000 RUB (about $12), making the trap widely available.
The Central Bank reported that no evidence existed of economic activity or legitimacy.Cashberry promised ridiculously high returns. Potential investors were promised 550% on cryptocurrency and 265% by lending money to small and medium-size businesses.