Cryptoforeign money – Cryptoforeign money scheme promoter issued cease now letter by NZ regulator
A cryptocurrency multi-level advertising and marketing scheme is below investigation by the Commerce Fee. Photograph / file
A girl has been requested to cease selling a cryptocurrency multi-level advertising and marketing scheme which the Commerce Fee believes is more likely to be a pyramid promoting scheme.
The fee has issued a cease now letter to Shelly Cullen – the promoter of Lion’s Share – a scheme which inspires folks to pay a whole lot of {dollars} to hitch up within the hopes of being rewarded in cryptocurrencies from every new particular person they sign-up.
It desires Cullen to stop her affiliation with the scheme or some other pyramid scheme, cease selling and recruiting members into it and take away any content material from social media that promotes such schemes.
The fee stated in an announcement that on receiving the cease now letter Cullen had confirmed to it that she had stopped selling the scheme which it’s nonetheless investigating.
Pyramid promoting schemes are unlawful below the Honest Buying and selling Act.
They provide a monetary return based mostly on funds made by new recruits and the return is primarily depending on the continued recruitment of recent members, not gross sales of a services or products.
The fee stated any people already concerned in Lion’s Share ought to stop their involvement and people contemplating becoming a member of it shouldn’t achieve this.
“Stopping hurt from pyramid schemes is a present precedence for the Fee. The schemes require fixed recruitment of recent members to purchase in and inevitably folks lose out financially as recruitment dries up.”
In November RNZ reported that Cullen had held seminars on-line and in particular person stating Lion’s Share provides folks a possibility to earn more money.
In a single video on YouTube, she claimed she made $154,000 from Lion’s Share in lower than two weeks.
She included a disclaimer the place she warned folks that Lion’s Share was a danger and there was no assure they might revenue from the scheme.
Nevertheless, she adopted that by saying “danger is the brand new secure”.
