Urgent Warning: SI Group’s Crypto Trading Scheme Exposed as MLM Ponzi

It is no secret that MLM schemes have been increasingly relying on cryptocurrencies for years to implement their questionable to illegal business models. FinTelegram issues a critical warning about SI Group, also known as System Investments GroupBehindMLM investigations reveal troubling signs of an MLM Ponzi scheme, with the company failing to provide transparent ownership or executive information on its website.

Misleading Claims and Dubious Origins

SI Group’s website domain (sigroup.top) was registered in 2021, with the latest update on May 5th, 2024. Despite this, the company falsely claims it was established in 2017. Such discrepancies are a red flag for potential investors.

SI Group presents a shell company certificate for System Investments Group LTD in Belize to appear legitimate. Belize is notorious as a tax haven, making it easy for scammers to incorporate shell companies with false details. For MLM due diligence, such certificates hold no real value.

Regulatory Concerns

On May 15th, 2024, the Central Bank of Russia (CBR) issued a warning labeling SI Group as a pyramid fraud. This regulatory alert underscores the need for caution when dealing with the company.

Lack of Products and Compensation Plan

SI Group offers no retailable products or services. Affiliates can only market the SI Groupaffiliate membership. While joining is free, full participation in the income opportunity requires a minimum investment of $50, solicited in USD through PerfectMoney and various cryptocurrencies.

Perfect Money (PM) is an anonymous Russian e-payment system created in 2007. It allows merchants to accept funds for their products and services anonymously. Consumers can send their funds to other Perfect Money clients. Clients do not have to be verified. However, clients have to be verified voluntarily to use certain features such as bank wire deposits and earn a trust level.

Questionable Revenue Sources

SI Group claims to generate revenue through cryptocurrency trading but fails to provide verifiable evidence of such activities. This lack of transparency fails the Ponzi logic test: if the company were truly generating 3.9% daily returns through trading, it wouldn’t need additional investments from members.

The only confirmed source of revenue is new investments from affiliates. Using these funds to pay returns to earlier investors classifies SI Group as a Ponzi scheme. The MLM side also operates as a pyramid scheme, as it relies solely on affiliate recruitment without any retail sales.

The Inevitable Collapse

Like all Ponzi schemes, SI Group‘s model is unsustainable. Once recruitment slows, new investments will dry up, leading to a collapse. Historically, the majority of participants in such schemes end up losing their money.