Similar to the Brazilian Ponzi scheme, Genbit has been roped into some serious brokerage allegation.
Before now, Genbit was said to exist as Zero10 after which it folded up and relaunched with its new name. The firm reportedly claimed that it pays 15% returns monthly appearing to be a Ponzi scheme however, it claimed to invest in Bitcoin.
Genbit promised clients they can make around $6,000 investment and get a return of over 150% of that amount that same year as it began to run into problems not long after. It claimed that all of Bitcoin disappeared.
Genbit claims and operations has raised further inquiry into its operation as it now pays investors in TreepToken or TRK.
Reportedly, the TRK native token could be sold however how it could happen remains unclear.
Genbit primary allegations
The company allegedly defrauded a family of around $91,000 after promising 15% returns on whatever they invested. The family invested $131,000 and got returns of $40,000 after which they received nothing for six months.
The State prosecutor’s office has also filed a public civil action requesting to block $1bn of the company and its partners.
Currently, Genbit has 330 cases in Sao Paulo court in just one month with a lawsuit filed against the company hiked only in January. However, investors have been warned to be wary of brokers who promise fixed investment.
Brazilian Ponzi scheme, BitConnet similar operations
Genbit operation likened to BitConnect do not have a TPK exchange on its back end as there is no record of how much people have invested in Genbit or how much they have lost in their investment.
Genbit owners also have shown no sign of retrieving the Bitcoin which has disappeared.
BitConnect, a popular Ponzi scheme whose model when it launched showed that it would be short-lived took a turn to scam people. The scam continued for several months as people lost money investing in the Ponzi scheme.
However, a larger chunk of the stolen fund has not been recovered despite a number of lawsuits against the company and its promoters.