RainbowEx fails to offer possession or government info on its web site.
RainbowEx’s web site area (“rainbowex.life”), was was privately registered on July 2nd, 2024.
If we have a look at the source-code of RainbowEx’s web site, we discover it’s localized to Chinese language:
This implies whoever is operating RainbowEx has ties to China.
As all the time, if an MLM firm will not be overtly upfront about who’s operating or owns it, suppose lengthy and onerous about becoming a member of and/or handing over any cash.
RainbowEx’s Merchandise
RainbowEx has no retailable services or products.
Associates are solely in a position to market RainbowEx affiliate membership itself.
RainbowEx’s Compensation Plan
RainbowEx associates make investments tether (USDT). That is accomplished on the promise of an ongoing passive return.
RainboxEx pays referral commissions on invested USDT down three ranges of recruitment (unilevel):
- degree 1 (personally recruited associates) – 20%
- degree 2 – 15%
- degree 3 – 10%
Becoming a member of RainbowEx
RainbowEx affiliate membership is free.
Full participation within the connected earnings alternative requires an undisclosed minimal funding in USDT.
RainbowEx Conclusion
RainbowEx is yet one more “click on a button” app Ponzi scheme. Whereas the underlying fraud is identical although, RainbowEx is ready up a little bit otherwise.
Since inception a couple of months in the past, RainbowEx has been pillaging Argentina.
As of September 2024, SimilarWeb tracked 3.5 million month-to-month visits to RainbowEx’s web site. 95% of that visitors originated from Peru. The remaining 5% is cut up between Chile and Peru.
Connected to RainbowEx now we have one thing referred to as Knight Consortium.
Knight Consortium is ready up on the area “knightconsortium.com”, first registered in October 2023.
Knight Consortium is represented to be run by what appears to be like like AI generated avatar executives:
In actuality Knight Consortium is run by the identical Chinese language scammers behind RainbowEx:
On behalf of Knight Consortium, Argentinian RainbowEx promoters have arrange native charity drives. That is an try at legitimacy by way of misdirection; donate a bit to native charities while financially plundering Argentina on a large scale.
To be clear, any actions exterior to RainbowEx’s underlying fraud doesn’t justify mentioned underlying fraud. This consists of something related to the connected Knight Consortium advertising arm.
RainbowEx’s “click on a button” Ponzi ruse is buying and selling alerts:
The offered ruse is RainbowEx associates log in and click on a button (the extra invested the extra the button must be clicked).
Clicking the button purportedly ties into executing supplied buying and selling alerts. For some motive RainBowEx can’t execute these trades on their very own, as a substitute choosing the ruse of sharing buying and selling income with buyers.
If that is senseless it’s as a result of it doesn’t. Why get randoms to click on a button in a dodgy app when you would simply execute the trades your self?
In actuality clicking a button inside RainbowEx’s app does nothing. All RainbowEx does is recycle newly invested funds to pay earlier buyers.
RainbowEx is a part of a gaggle of “click on a button” app Ponzis which have emerged since late 2021.
Examples of already collapsed “click on a button” Ponzis utilizing the identical app ruse embody SDT Quant, Pitrex, and TOST.
Since 2021 BehindMLM has documented a whole lot of “click on a button” app Ponzis. Most of them final a couple of weeks to a couple months earlier than collapsing.
“Click on a button” app Ponzis disappear by disabling each their web sites and app. This tends to occur with out discover, leaving nearly all of buyers with a loss (inevitable Ponzi math).
Argentina’s La Nacion reported RainbowEx disabled withdrawals on Monday, October 14th. Shortly after a “regulators!” exit-scam was rolled out;
The message is titled: “Necessary discover from Rainbow Alternate: Preparations for withdrawal from the Argentine market and account activation.”
Then, it says: “Expensive Argentine customers:As a result of settlement reached between Rainbow Alternate and native regulators, We are going to formally withdraw from the Argentine market and totally replace the platform.
To make sure a easy progress of this adjustment, all Argentine and associated accounts will likely be reset to an inactive state.”
To be clear to anybody studying this, RainbowEx has not reached any agreements with any regulators. Developing with baloney exit-scams is typical of Chinese language app Ponzis.
As a part of its exit-scam RainbowEx initiated a restoration rip-off. RainbowEx buyers had been informed withdrawals could be re-enabled in the event that they paid an 88 USDT price.
La Nacion reviews that as of October fifteenth, an extra 230,000 USDT has been fleeced from gullible RainbowEx buyers.
RainbowEx withdrawals stay disabled.
Argentinian authorities raided two high native RainbowEx promoters final week. This seems to be the precise motive the Chinese language scammers behind RainbowEx pulled the plug.
Eduardo Maximiliano Braga was one of many raided suspects. He’s accused of stealing over 320,000 USDT by RainbowEx.
Luis Alberto Pardo is the second raided suspect. Pardo is accused of stealing at the least 223,083 USDT by Rainbow Ex.
The Chinese language scammers behind RainbowEx, seemingly working out of Dubai or Asia, stay at giant.
Organized crime pursuits from China function rip-off factories behind “click on a button” Ponzis, sometimes from south-east Asian nations.
In September 2024, the US Division of Treasury sanctioned Cambodian politician Ly Yong Phat over ties to Chinese language human trafficking rip-off factories.
By way of numerous firms he owns, Phat is alleged to shelter Chinese language scammers working out of Cambodia.
No matter which nation they function from, the identical group of Chinese language scammers are believed to be behind the “click on a button” app Ponzi plague.