Take Africa and South Asia by Storm: Ponzi Scheme Behind MTFE AI Trading

lately, Metaverse Foreign Exchange Group Inc (MTFE), a Canada-registered forex broker, has gained popularity among investors, particularly in Africa and South Asia.

By promoting their "AI smart transaction strategy" and promising high daily returns, MTFE has successfully lured in a large number of novice investors. However, our investigation has uncovered a Ponzi Scheme operated by MTFE.

Aggressive marketing via CEO incubation & offline seminars

MTFE has launched a "CEO incubation" program, where group leaders with a minimum of 30 MTFE daily active trading users can apply for marketing support. Approved leaders receive varying levels of support, which they utilize to organize offline seminars or other activities to expand their influence and team size. MTFE posts photos from these seminars to create a sense of excitement and encourage investment. The strategy allows MTFE to swiftly establish a strong presence in South Asia and Africa, where regulations on forex and derivatives are not stringent.

Traffic data from Similarweb further supports MTFE's focus on these regions. As of July 2023, top sources of traffic to MTFE's website are from Sri Lanka (22.87%), Bangladesh (20.71%), India (17.21%), Nigeria (6.51%), and the United Arab Emirates (4.61%).  

Unreasonably high daily profits

MTFE claims to have AI trading bots boasting 98% accuracy. In a poster, MTFE guarantees a daily return of 1.5% - 2.55%, which seems very tempting, especially to individuals with zero trading knowledge but a strong desire for quick money.

Even with a minimum deposit of $26 and a daily return of just 1.5%, one could earn a net profit of $101.79 within a year (if starting from 1 July 2023, only business days included), and the percentage profit is 391.5%.

If these claims were true, why wouldn't the MTFE team invest their own money instead of earning relatively meager commissions?

Typical Pyramid scheme

MTFE also provides a commission return plan, where commission percentages vary based on investor's level. To reach higher levels, investors must not only deposit more money but also build their own networks. if one desires a better commission income percentage, he must recruit more people and motivate them to invest. As such, numerous ads can be found on various social media platforms, featuring promo codes aimed at attracting as many investors as possible.

Negative Reviews from MTFE Victims

MTFE victims have reported issues such as account blocking, withdrawal issues, unresponsive customer support, and excessive service fees, further supporting the conclusion that MTFE is a scam.

MTFE is an illegal trading platform

MTFE claims to have been around since 2015, but its domain (mtfe.ca) was first registered in December 2021.

The broker repeatedly emphasizes compliance with regulations by highlighting their MSB license from FINTRAC. However, FINTRAC is Canada's financial intelligence unit responsible for combating money laundering and terrorist financing.

Under Canadian laws, "all firms and their registered representatives that are in the business of advising on or trading in securities in Canada must be members of IIROC". Although MTFE claims to be registered in Ontario, we have been unable to locate a firm called "Metaverse Foreign Exchange Group Inc" on IIROC's register.

Furthermore, the OSC has issued a warning against MTFE, stating that the company is not registered in Ontario to engage in securities trading.

Conclusion

MTFE is a Ponzi scheme disguised as a forex broker, and investors are strongly advised to stay away from it.

To mitigate risks in a down economy, many individuals turn to investments. Due to a lack of trading knowledge and the desire for quick wealth, people often fall victim to investment scams. Investors must remember there is no such thing as a free lunch. If someone "generously" invites you to earn a load of money, be cautious, as it may be a scam waiting to ensnare you.