Allegations of Fraud Emerge Against Treasure NFT Trading Platform

Treasure NFT, a platform that promised high returns on NFT trading, is facing serious allegations of fraud. Reports suggest that its operations resemble a Ponzi scheme, raising concerns among investors and regulatory authorities alike.

Key Takeaways

• Treasure NFT claims to offer daily returns of 4.3% to 6.8% and monthly profits of up to 30%.

• The platform primarily relies on a referral-based revenue model, typical of Ponzi schemes.

• Users have reported difficulties accessing their funds, with many accounts frozen.

• Investigations reveal discrepancies in the platform's registration and operations.

Overview of Treasure NFT

Treasure NFT markets itself as an AI-driven trading platform for non-fungible tokens (NFTs), targeting economically disadvantaged communities in regions like Pakistan. Initially, it attracted users with promises of substantial daily and monthly returns, which experts now deem unsustainable. The platform's reliance on new user investments to pay existing investors raises red flags about its legitimacy.

Ponzi Scheme Characteristics

The referral-based model employed by Treasure NFT is a significant indicator of its potential fraudulent nature. Here are some characteristics that align with Ponzi schemes:

• Recruitment Focus: New users are incentivized to join, with profits for earlier investors paid from the funds of new participants.

• Unsustainable Returns: The promised returns are unrealistic and can only be maintained by a continuous influx of new investors.

• Withdrawal Issues: Users have reported that their accounts were frozen, and withdrawal requests were either delayed or denied, further indicating a lack of genuine business operations.

Discrepancies and Investigations

A closer examination of Treasure NFT reveals troubling inconsistencies:

• False Registration Claims: The platform claims to be registered in Tempe, Arizona, but the address leads to a Russian music academy, raising questions about its legitimacy.

• Fabricated Profiles: Investigations uncovered that the LinkedIn profiles of the company’s supposed founders were fabricated, with no verifiable information available.

• Regulatory Scrutiny: Authorities in India and West Bengal are reportedly investigating Treasure NFT for potential fraud, highlighting the growing concern over its operations.

User Experiences and Warnings

Many users have expressed frustration over their experiences with Treasure NFT:

• Frozen Accounts: Numerous complaints indicate that users' accounts were frozen without explanation.

• Lack of Customer Support: Attempts to reach customer service have largely gone unanswered, further eroding trust in the platform.

• Misleading Testimonials: The platform has been accused of using fake testimonials from newly created accounts to mislead potential investors about its legitimacy.

Conclusion

As the allegations against Treasure NFT continue to unfold, financial experts urge potential investors to exercise caution. They recommend conducting thorough research before investing in any platform, especially those promising guaranteed returns or relying heavily on referral systems. The situation serves as a stark reminder of the risks associated with emerging technologies in the financial sector, particularly in the unregulated NFT market.

Sources

• a closer look at the alleged fraudulent trading platform, The Express Tribune.