Thanks for the link mate. It's an interesting summary of points that BitClub Network continue to avoid answering, but it's also brought a very important aspect of BCN out into the open thru the comments made.
BitClub don't operate in the U.S. (officially) and haven't done since May 1st this year.
The U.S. is a huge market for Bitcoin schemes and is totally addicted to MLM.
Many of BitClub's major movers and shakers hold American citizenship. But they have to scour the world for new suckers, as BCN does not authorize new members to join if they are obviously U.S. based. (This is easily circumvented and affiliate marketeers are passively encouraging prospects to do so by using overseas registration).
BitClub hint at the reasons for doing this in various member news updates
After careful consideration and many conversations with lawyers, advisors, and leaders within BitClub Network we have decided to stop taking new memberships within the United States and focus on other countries that we are growing much faster in.
Why do you need to talk to lawyers if you're a legit business?
It is only intended to stop future members from joining until we can figure out if our business model will be a fit for the US market. The fact is the cost to do business in the United States significantly outweighs the benefits of being in the market and if we do nothing it could jeopardize everything so we are pulling out now!
The cost to do business..... what cost? How is the origin of investor money in anyway a variable?
It could jeopardize everything.....how?
The answer is law.
You know, that fascist establishment control method that enslaves us all that people rant about. And then run to when they need protection.
I'm not going there with this, suffice to say there is a lot of validity in the expression "My enemy's enemy is my friend." (which cuts both ways.)
Anyhow, the law exists. If you break it, there are consequences.
There is a regulatory framework in the U.S. which governs investment, investment "advice".
It gives consumers basic rights of redress, as well as laying down rules by which anyone looking for money to finance their scheme has to abide.
There's probably thousand upon thousand of pages of sub clauses, precedents and guidelines in this area, but the very basic one regarding money changing hands in the hope of reward is called
the Howey Test. It's a pretty simple working definition of what constitutes an "investment contract".
It basically defines it as
(i) the investment of money; (ii) in a common enterprise; (iii) with the expectation of profits to come solely from the efforts of others.
If you are doing that, then you are selling investment contracts. You are required, among other things, to provide
A description of the company's properties and business purpose
A description of the security being offered
Information about the company's management
Financial statements about the company, certified by independent accountants
Scammers hate this with a passion.
What does a scammer do when confronted with an obstacle such as the law? Squirm and turn, deny obvious facts and twist definitions, usually aided by aided by specialist niche lawyers who have a massive vested interest. Or bite the bullet, withdraw from that market and go look for victims in less regulated places?
That's why BitClub Network withdrew from the U.S.
To avoid giving basic information about who is behind it, or any consumer rights or protection to their investors, .
Also, when a scheme implodes, under certain circumstances a receiver can operate a "clawback", which involves taking illegally acquired profits from net gainers (usually upline affiliate marketers) and returning them to the vast majority who lost money, because of the illegal means by which it was taken.
This can run into hundreds of millions of dollars as seen in
Zeek Rewards, another huge "passive income" scam, where net gainers thruout the world are being sued for their scam rewards.
U.S. based BitClub Network affiliate marketers would be in the frame for this.
In a recent series of court cases in Germany on this subject, BitClub Network's name pops up.
There is a law firm in Germany called Schulenbeg and Schenk. They are basically attack dogs for the OneCoin scam.
OneCoin has been making huge changes and separating its structure to avoid being seen as an "investment provider".
According to them now, they just sell "education packages" for thousands of euros and give away points that can be used to "practice" crypto trading and investment.
They then claim they are neither revenue sharing or selling investments.
This is transparently bullshit but may help them extend the life of this huge scam for a bit longer. In order to do that, they want to maximize income in the meantime and one way of doing that is to drop competing scams in the legal shit.
Enter S&S and this
recent legal judgement in Hamburg, where they brought action against the
Beonpush PonziThe tl,dr is that
The Hamburg Regional Court confirmed the above decision, that it is the Beonpushsystem is an investment. The consultants that provide this facility have to observe a number of requirements, such as that the investor has to be noted that a total loss of its investment is possible. A right of withdrawal must be given. As these requirements were fulfilled by any single Beonpush counselor, have all recruited participants who have lost their use, may claim for damages against their recruiters, since the relevant information has not been granted. This law may incidentally readily be transferred to almost any RevShare programs and their advisors, such as Getmyads, Questra, and also the Bitclub.
also the Bitclub....Still Awake?
WTF has this to do with the 99bitcons piece?
The answer is in the comments.
There are two (so far, just waiting for the brigading to start), the second one from some pseudo intellectual Aussie BCN pimp isn't even worth mentioning, but the first one from "Joby" is.
Joby Weeks, perchance?
He makes big play of the
huge txt fee "mistake" (wondered when they would use that) and how BitClub distributed it "benevolently", so they can't be scammers, can they?
He waffles on and on, no facts, figures or anything, as he and other MLM salesmen do.
Hidden in his "we're misunderstood" spiel he tries twice to make the ludicrous claim
BitClub Network don't sell mining investments, they sell mining hardware.Yup, that's what he said. Twice. For the reasons above.
So there you have it, BitClub Network investors. You're not investors at all. You have simply bought a piece of mining hardware. That you have never seen, touched or operated yourself.
Congrats.
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