In the intricate world of crypto finance, caution is paramount, and recent findings about the L7 DEX scheme raise red flags that cannot be ignored. The financial intelligence platform FinTelegram has labeled L7 DEX a Ponzi scheme. As has the MLM review platform BehindMLM. Unfortunately, it is a fact that the MLM scene has now focused on the crypto segment and is implementing Ponzi schemes along the lines of OneCoin without any regulation.
The Web3 Ponzi Scheme L7 DEX
Billing itself as a decentralized asset management protocol based on Web3, L7 DEX operates in a realm of secrecy that begets suspicion. This crypto scheme introduces its own token, L7 (symbol: LSD), boasting a market capitalization of approximately $5 million. However, what appears on the surface as a groundbreaking venture masks a potential threat to unsuspecting crypto investors.
The lack of transparency surrounding L7 DEX is cause for concern, with its websites (L7dex.com, L7dex.financial, L7pay.finance) providing little to no information about the operating legal entities or individuals behind the scheme. Such opaqueness is typically a red flag in the financial industry, and in this case, it raises questions about the legitimacy of L7 DEX.
The scheme promises extraordinarily high returns on crypto assets, including a daily 1.5% staking award. With this in mind, we have placed L7 DEX under investigation and will soon publish a comprehensive review, complete with a rating.
Suspicious Connections
Furthermore, suspicions arise regarding L7 DEX‘s potential connections to other Ponzi schemes, such as Paraiba World and Trillant. Criminal charges have been filed against these schemes, prompting investigations by public prosecutors in various jurisdictions.
Paraiba World was a vast MLM scheme founded by the Austrian Erich Ely. The (potential) members were promised quick riches through crypto investments. Regulators in various jurisdictions have issued warnings. Public prosecutors are investigating. The scheme has consequently renamed itself Trillant and launched its own Trillant Coin. A total of between €150 and €200 million is said to have been collected by Paraiba World and Trilliant.
The Alchemy Pay Connection
The issuance of the virtual L7 Crypto Card by Alchemy GPS Europe UAB, registered in Lithuania, adds another layer of complexity to the scheme. While Alchemy Pay operates the card, its registration with the Financial Crimes Investigation Service of Lithuania as a Virtual Asset Service Provider does not equate to supervision. The card, available from Visa and MasterCard, raises concerns with Lite and Standard versions that don’t require a thorough KYC check.
As the L7 DEX scheme continues to operate in the shadows, a call to action is issued to whistleblowers who may possess additional information about its inner workings. The lack of transparency, potential links to other Ponzi schemes, and the involvement of individuals with dubious track records demand thorough scrutiny.
In the realm of crypto finance, where trust is paramount, the L7 DEX scheme serves as a stark reminder of the importance of due diligence. Investors are urged to exercise extreme caution and seek transparency in any venture before becoming entangled in potentially fraudulent activities.
