Airbit Club finally gets the spotlight for committing a one hundred million dollars ($100m) fraud, after several years of unchecked PR pomp.
Running an investment scheme that promised returns on any purchased investment tier, Airbit Club founders offered affiliate programs, various cycler rewards, and other ROI-tied schemes.
The aftermath is a subpoena, which eventually sees top promoters of the brand facing long prison time sentences, after pleading guilty to a $100m fraud charge. One of the indicted promoters is actually an attorney, who is charged with processing the fraudulent transactions.
Following an announcement from the U.S. Department of Justice, (DOJ), Airbit Club owners and principal PRs — Cecilia Milian, Jackie Aguilar, Karina Chairez, and Scott Hughes — have been found guilty of obtaining fraudulent profits worth $100m in cash, BTC, and real estate.
Based on the court ruling, these men will subsequently forfeit their loot.
One remarkable pattern about the whole scheme is the PR pitch, which promises ROIs on any purchased investment tier regardless of the holder’s participation in the actual ROI-earning program. That’s typical of MLMs.
How They Pulled Off the Scam
The promoters used a ridiculously simple scheme to defraud people. Usually, such scams involve a popular figure chipping in one or two soundbites intended to get people interested in the sham.
In this case, though, none of the PR team members is markedly popular or attached to any reputable business brand. Yet they managed to raise millions of investments in cash, cryptocurrency and landed property.
According to the DOJ report, the promotion strategy was to travel from one part of Europe to the other, hosting target communities and pitching the investment deal to them using fake coin mining clips.
No doubt the outings were lavish and staged in obvious venues — anything that builds a fad. Giving out every semblance of an easy, comfy, and luxurious lifestyle without a regular job is the main gimmick used by Airbit Club PR.
Using this scheme, they got people from Latin America, Asia, and Eastern Europe signing up for a supposed opportunity with an international multi-level marketing company.
Upon signing up for a gig, the Airbit Club members would get access to a bogus crypto mining chronicle on a website.
According to reports, the scale of the fraud was so varied — wire card fraud, money laundering, and bank fraud — that investors and affiliates were filing complaints and warning about incongruencies since 2016.
Likely, MLMs and other passive ROI gigs could pull off these Ponzi schemes because people don’t know how they operate. In this article, we highlight the programs offered by Airbit Club and their downsides.
See below for details.
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Airbit Club | Compensation Plan
While the scheme was still rife, Airbit Club members buy up positions at a fixed fee, then they subsequently get fractions of it in return while the rest goes into the fake bitcoin mining supposedly run by the company.
It typically offered only three (3) tiers on this plan. They include:
Pro — sells for $1000 (ROI payable 300 days)
Corporate — $500 (ROI payable 225 days)
Executive — $250 (ROI payable 150 days)
Members are promised withdrawal cycles of up to three hundred (300) — this depends on the package that the member is currently on at the time.
The number of days is divvied up according to a withdrawal processing charge ranging from 0.2%-1.2%. Each period is tied to a 75 ROI pay cycle.
Subsequently, the members get to earn more ROIs from a residual matrix. Below is how this works.
Earn From 3×18 Matrix
Everything just gets turned up several notches on Airbit Club. Here, instead of using the usual 3×3 or 2×2 (binary team) reward cyclers, Airbit Club extends the downlines to eighteen levels.
In case you are new to MLM matrixes, cyclers, or grid jargon, here is a brief explanation of how it works.
The affiliate who recruits people to the packages gets the top position, while his referrals get the positions — there can be more than two of these at each level — on the first level (Level 1).
When each Level 1 affiliate recruits anyone to purchase an investment tier, the affiliate gets placed above newly-generated spots (also more than two of these, making up Level 2). The same pattern continues down an infinite cycle.
Given the size of the matrix, positions are expanded on each level by three times the size of the previous level.
If Level 1 has three (3) spots, Level 2 gets nine (9), Level 3 gets twenty-seven (27), and so on. The scheme is oddly based on multiples of three per level, despite most MLMs deferring to the usual binary team lattice.
Retirement Plan Matrix
As if the above matrix isn’t an unsightly jumble already, Airbit Club goes to offer another matrix cycler — only this time they call it a Retirement Matrix.
It goes past the designated eighteen levels for the 3×18 matrix. Members signing up for this scheme expect to earn from a 3×32 Matrix Cycler. Given the scaling factor here, Airbit Club probably worked the plan via exponentiation, instead of actual market research.
$32 on entries filled on Levels 10 to 32
$10 on entries filled on Level 9
$20 on entries filled on Levels 4 to 8
$10 on entries filled on Levels 2 to 3
$20 on entries filled on the first level (Level 1)
Conclusion
There is no point hacking through the chunk of jargon and hogwash traded for $100m by the Airbit Club PR team. Currently, the promoters have pleaded guilty to a series of fraud charges. And those are grievous ones too!
MLMs typically offer lots of deals, promos, and ROI-tied schemes to spur the fad on their packages. They are counting on their audience to be trusting. In that way, they easily pull off their Ponzi scheme without any challenge from their members.
The first step to identifying the sort of business run by the company is to check for solid records and business roadmaps. Also, always verify that the brand is legal.
Airbit Club is a known scam, as per the DOJ announcement.
