Alert : Blockchain Era Ponzi Scheme 2023

In recent years, the world of cryptocurrencies has been marred by fraudulent schemes and scams. One such scheme that gained notoriety is the Blockchain Era Ponzi pyramid scheme. This article aims to delve into the details of this fraudulent operation, its multiple reboots, and the subsequent warnings issued by regulatory authorities.

The Genesis of the Blockchain Era Ponzi Scheme

The Blockchain Era Ponzi scheme, also known as WEWE Global, first emerged in 2021 as a simple MLM crypto Ponzi built around WEWEX tokens. This initial iteration of the scheme attracted unsuspecting investors with promises of lucrative returns in the rapidly evolving world of cryptocurrencies. However, as with any Ponzi scheme, the unsustainable business model eventually collapsed, leaving many investors in financial ruin.

The Reboots and Associated Shell Companies

Undeterred by the initial failure, the masterminds behind the Blockchain Era Ponzi scheme introduced multiple reboots in an attempt to continue their fraudulent activities. The second iteration of the scheme was built around LYO tokens and suffered a similar fate as its predecessor.

Following the collapse of the LYO-based Ponzi scheme, the orchestrators launched a third reboot through the introduction of LFI tokens. However, this attempt at reviving the scheme was short-lived, as it too crumbled due to its unsustainable nature.

Throughout these reboots, a series of associated shell companies were established to facilitate the fraudulent operations. LyoPay, LyoTrade, and LyoWallet were among these entities, created to give an illusion of legitimacy to unsuspecting investors.

The Warning from the Financial Market Authority

The Financial Market Authority (FMA) of New Zealand played a crucial role in exposing the fraudulent activities of the Blockchain Era Ponzi scheme. On November 13th, the FMA issued a warning classifying the scheme as a “suspected Ponzi and pyramid scheme.” It highlighted that WEWE Global and LYOPAY, operating under the name The Blockchain Era, were offering cryptocurrency products and services to New Zealand retail clients without proper registration or regulation.

FMA are aware that WEWE Global (also known as The Blockchain Era) and LYOPAY are offering crypto currency products and services via webinars and public event in New Zealand. We note they are not registered on the Financial Service Providers Register or regulated for providing their services and products to New Zealand retail clients, as required by the Financial Service Providers (Registration and Dispute Resolution) Act 2008 and Financial Markets Conduct Act 2013.

We recommend exercising caution when dealing with these entities.

Entity name:WEWE Global (also known as The Blockchain Era);and LYOPAY
Websites: tbe.io; myblockchainid.io; Ifi.io; cloudminting.co; wewe.global; bit.ly/wewelink;lyopay.com; lyowallet.com; lyobanq.com; lyotrade.com; lyomerchant.com; lyopay.pro; lyotravel.com; lyotechlabs.comor lyoswapbot; t.me/lyoswapbot; lyocredit.io.

The FMA’s warning serves as a reminder to exercise caution when dealing with entities like The Blockchain Era. The scheme’s history of securities fraud and repeated collapses should serve as a red flag for potential investors.

The Collapse and Fallout

The third reboot of the Blockchain Era Ponzi scheme collapsed in August 2023, following a securities fraud investigation initiated by New Zealand authorities. This collapse further highlighted the deceptive nature of the scheme and the devastating financial consequences it had on its victims.

In the aftermath of the collapse, the FMA continued its efforts to protect investors and prevent future fraudulent schemes. The authority urged individuals to report any suspicious activities related to The Blockchain Era or other similar schemes, emphasizing the importance of regulatory oversight in the cryptocurrency industry.

Tracking Website Visits

To gauge the scale of the operation, SimilarWeb tracked approximately 106,000 visits to The Blockchain Era’s website in November 2023. Notably, a significant portion of these visits originated from Italy, Greece, Germany, the Czech Republic, and Croatia.

This data highlights the global reach of the scheme and the need for international cooperation among regulatory bodies to combat fraudulent activities in the cryptocurrency space.

Conclusion

The Blockchain Era Ponzi scheme serves as a cautionary tale for investors looking to enter the cryptocurrency market. Its multiple reboots and associated shell companies demonstrate the lengths to which fraudsters will go to perpetuate their schemes.

The warning issued by the FMA should serve as a wake-up call to potential investors, reminding them to conduct thorough due diligence and seek regulated investment opportunities. As the cryptocurrency market continues to evolve, regulatory authorities play a crucial role in safeguarding investors and maintaining the integrity of the industry.

By staying informed and vigilant, individuals can protect themselves from falling victim to fraudulent schemes like the Blockchain Era Ponzi pyramid scheme.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.