L7 Trade Company is a Russian-based crypto Ponzi scheme. The most frequent visitors to the website hail from Russia, Venezuela, and Ukraine.
Ponzi investors operate in a race against time and the best time to invest in the scheme is during its “explosive growth” phase when the project can honor withdrawals because more money is flowing into the scheme than what goes out in withdrawals. However, when a Ponzi scheme experiences stagnating traffic in the amount coming in, then it means the scheme has insufficient money and is headed for collapse. L7 Trade has experienced the same situation.
Headed for Trouble
In recent weeks, the scheme was not experiencing any growth in new investors and traffic. With no new investors on board, the scheme is headed for collapse.
The L7 Trade is seemingly a scam, as it leaves many questions unanswered. To begin with, the company provides fake names of key figures associated with it. The company is registered as a crypto MLM Ponzi under one Alfred Victor Brewster, which is a fake name. The company claims to generate an extremely high ROI of 4% every day. However, to earn, an investor has to invest at least 0.02 BTC.
Secondly, they claim to be doing trading online but this is not true. They only use this to lure new investors to pump money into the scheme. L7 Trade does no trading whatsoever.
Additionally, the company claims to offer investment packages, which is false. L7 Trade does not have packages as they claim. What they do is to lure customers to invest at least 0.02 BTC in a variety of chosen digital currencies and then the company performs some four fake trades per day.
L7 Trade offers direct referral ROI matching, in which affiliates can earn 21 percent of what their referrals at level 1 earn as their daily ROI. Besides, the company offers BIG returns and big referral commissions, which are its selling points.
For those who have been successful, 4% per day is a huge income, in addition to 21 percent of what your affiliates earn. Surprisingly, L7 Trade has not lasted even 3 months. The company launched in May.
Red Flags on L7 Trade
Smart investors can always tell the red flags in a skeptical financial project. For L7 Trade, the fake name of the owners of the company should sound a warning.
Four days ago, the website of the company was showing a message that the site was undergoing technical works. The message stated that they were working on improving the site and therefore needed a little more time.
However, all indications show that the scheme just came to a halt after fleecing unsuspecting investors of close to $40 million worth of crypto. For now, lucky are those who made their money back. For those who lost, that is how Ponzi schemes work. While the site is not 100% offline, the message leaves a lot to be desired. The Cloudflare is still working and their AdWords still running, but the site remains inaccessible.