An MLM-based investment scheme that used bitcoin as its transactional currency has gone bust, in Vietnam.
A Vietnamese investment scheme that used multi-level-marketing (MLM) and bitcoin as its currency to promise investors returns of 144% a month has come to an end.
MLM trading is illegal by law in Vietnam, as deemed by the Vietnam Competition Authority (VCA), but that didn’t stop unsuspecting users from pouring money into the scheme.
The Ponzi scheme first surfaced in January this year. It used the domain “fxmt4.us”, seeking participants to register with an account before demanding a minimum deposit of 1 bitcoin, as the buy-in, according to local publication Thanh Hien.
Early investors saw early returns, fueling the interest among residents like farmers at a countryside district in Vietnam. Initially, investors saw 1% in returns a day, for the first month. After the first month, that rate increased exponentially, with returns of 24% for every five days. Over a month, that works up to 144%.
By May, the scheme was no longer paying out dividends and