Treasure NFT Trading Platform Under Fire: Allegations of Fraud and Ponzi Scheme

Treasure NFT, a platform that claims to offer AI-driven NFT trading with high returns, is facing serious allegations of fraud. Experts have raised concerns about its unsustainable profit guarantees and referral-based revenue model, which resembles a Ponzi scheme. Users have reported withdrawal issues and a lack of transparency, prompting investigations by regulatory authorities.

Key Takeaways

• Treasure NFT promises unrealistic returns of 4.3% to 6.8% daily and up to 30% monthly.

• The platform primarily relies on a referral-based model, raising red flags about its legitimacy.

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

• Investigations are underway by authorities in India and West Bengal regarding potential fraud.

Allegations of Fraud

Treasure NFT has been marketed as a decentralized marketplace for NFT trading, boasting daily returns that are significantly higher than industry standards. However, financial experts have pointed out that such returns are not sustainable and are often indicative of a Ponzi scheme. The platform's operations appear to target economically disadvantaged communities, particularly in regions like Pakistan's tribal areas, Balochistan, and Sindh.

Referral-Based Revenue Model

The platform's business model heavily relies on recruiting new users to invest, with profits for earlier investors being paid out from the funds of new participants. This structure creates an illusion of profitability but is fundamentally flawed. When new investments slow down, the system is likely to collapse, leaving many users with substantial losses.

Discrepancies in Registration

Treasure NFT claims to be registered in Tempe, Arizona, but investigations have revealed inconsistencies in its registration details. The address listed corresponds to a Russian music academy, raising further questions about the platform's legitimacy. Additionally, the LinkedIn profiles associated with the company appear to be fabricated, with no verifiable information about its founders or operational team.

Withdrawal Issues and User Complaints

Numerous users have reported problems accessing their funds, with accounts being frozen without explanation. Withdrawal requests have been met with delays or outright denials, and attempts to reach customer service have largely gone unanswered. These issues have intensified suspicions that Treasure NFT may be operating as a scam.

Regulatory Investigations

Regulatory authorities in India and West Bengal are reportedly investigating Treasure NFT for potential fraud. The platform's claims of holding a Money Services Business license from FinCEN lack substantial proof, further complicating its standing in the market. As the investigation unfolds, experts are advising potential investors to exercise extreme caution.

Conclusion

As the allegations against Treasure NFT mount, it serves as a cautionary tale for investors in the rapidly evolving NFT space. Financial experts recommend conducting thorough research before investing in any platform, especially those promising guaranteed returns or relying on referral systems for revenue generation. The unfolding situation highlights the importance of vigilance in the face of potential fraud in the digital asset market.

Sources

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