The Coin-Invest Ponzi Model Explained
"Guaranteed 20% Monthly Returns" — The Impossible Promise
Coin-Invest Pitch: "Deposit $10K, get guaranteed $2,000 profit every month."
Reality Check:
- Impossible returns: 20% monthly = 9x your money in a year (240% simple annual). No legitimate investment guarantees this. Bernie Madoff promised 10-12% annually.
- Source of returns? Coin-Invest claimed "AI trading algorithms." Reality: zero actual trading occurred.
- How they paid: Early investors received "profits" paid directly from deposits made by later investors. Classic Ponzi structure.
Red Flag: Any investment promising "guaranteed" high returns (over 1-2% monthly) is almost certainly a Ponzi scheme or high-risk scam.
Zero Regulation: Marshall Islands Offshore
Registration: Coin-Invest operated via shell companies registered in Marshall Islands.
Why Marshall Islands?
- Zero financial regulation: No license required, no oversight, no investor protection.
- Anonymity: Allows anonymous company ownership, hides operator identities.
- No enforcement: Jurisdiction doesn't cooperate with foreign regulators or enforce judgments.
- Scam haven: Popular jurisdiction for Ponzi schemes and binary options scams.
Regulation Check: We verified with FCA, ASIC, CySEC, FINMA, CFTC — Coin-Invest never held any legitimate financial license anywhere.
Fake Trading Platform
Coin-Invest provided a web-based "trading platform" showing account balances and "profits":
- Platform = Fake: Dashboard numbers were entirely fabricated. No actual trades placed on any market.
- Manipulation: "Profits" shown consistently grew 15-25% monthly to match promises.
- No market connection: Platform wasn't connected to any real liquidity providers or exchanges.
- Victim Verification: Victims compared Coin-Invest "trades" to real market data—prices, times, instruments didn't match reality.
Purpose of fake platform: Create illusion of real investment activity, encourage larger deposits based on fake profits.
Victim Testimonials (Verified)
Victim #11 — Sarah J., Canada
"2018. Friend introduced me. 'Guaranteed 20% monthly.' Seemed too good but platform showed consistent profits. Deposited $10K, then $35K more. Received $4K 'profit' payouts first 2 months (paid from my own money, I realized later). Then payouts stopped. Platform froze. Website disappeared 2019. Lost $45K. Classic Ponzi."
Verified: Wire transfers, platform screenshots (fake profits), email correspondence, IIROC complaint filed
Victim #23 — David R., Australia
"2017-2019. Colleague recommended. 'AI trading bot, 20% monthly.' Deposited $20K initially. Platform showed steady gains. Reinvested 'profits.' Deposited $60K more over 18 months. Tried withdrawing $30K in 2019. Request ignored. Then website vanished. Realized no real trading ever happened. Just fake numbers on a screen. Lost $82K."
Verified: Bank statements, platform login records, legal demand letter (undeliverable), ASIC complaint reference
Victim #38 — Maria S., Spain
"2018. Online ad promised 'safe crypto investment, 20% monthly.' Looked professional. Deposited €10K via Bitcoin. Platform showed +€2K profit first month. Deposited €20K more. Received €1,500 'withdrawal' once. Then withdrawals blocked. 'System maintenance.' Website disappeared mid-2019. All crypto gone. €31K stolen."
Verified: Crypto transaction hashes, platform screenshots, email chain, CNMV complaint filed
The Collapse (2019)
Why Ponzi Schemes Always Collapse
Coin-Invest collapsed mid-2019, following classic Ponzi trajectory:
- Early Stage (2017-2018): Attract initial "investors" with high guaranteed returns. Pay promised "profits" using new deposits. Create buzz, testimonials (from early paid investors).
- Growth Stage (2018-mid 2019): Exponential growth needed. Recruit aggressively via social media, referrals. Payouts increase, requiring ever-larger new deposits to sustain illusion.
- Collapse Stage (mid-2019): New deposits slow down. Payout requests exceed incoming funds. Operators block withdrawals ("system maintenance," fake reviews).
- Exit Scam (late 2019): Operators disappear with remaining funds. Website offline. Shell companies dissolved. Victims left with nothing.
Coin-Invest followed this playbook exactly. Collapse inevitable once new money couldn't cover fake payouts.
Red Flags: How to Spot Ponzi Schemes
🚩 Guaranteed High Returns
"Guaranteed 20% monthly" = impossible. Real investments have risk. Guarantees = Ponzi.
🚩 Zero Regulation
Marshall Islands offshore = no oversight. Legitimate investments are regulated.
🚩 Vague Strategy
"AI trading algorithms" = buzzwords, no verifiable proof. How exactly is profit generated?
🚩 Offshore Registration
Marshall Islands, St. Vincent, BVI = scam havens. No legal recourse.
🚩 Pressure to Reinvest
Encourage reinvesting "profits" instead of withdrawing. Keeps money in scheme longer.
🚩 Withdrawal Problems
Delays, excuses ("maintenance"), minimums change. Classic signs scheme is collapsing.
What to Do If You Lost Money to Coin-Invest
Recovery Reality (Near Zero):
- 1. Accept loss: Coin-Invest collapsed 2019. Offshore, zero regulation = funds gone. Recovery impossible.
- 2. Chargeback expired: Collapsed 6+ years ago. Chargeback windows (120 days) long expired.
- 3. No regulatory protection: Zero regulation = no compensation schemes.
- 4. Legal action futile: Marshall Islands offshore = operators anonymous, assets unrecoverable.
- 5. Tax loss only: Document loss for tax deduction (Ponzi scheme loss). Only practical step.
- 6. Report to authorities: File with FBI IC3 (USA), Action Fraud (UK), local police. Helps track operators for future scams.
Recovery Success Rate (Coin-Invest Victims)
Of the 45 victims we tracked:
- 0 victims (0%) recovered funds via any method
- 3 victims (7%) received partial tax benefit from documented loss
- 42 victims (93%) total loss, no recovery
Brutal reality: Ponzi schemes operating offshore = near-zero recovery. Operators disappear, assets hidden. Money gone.
How to Avoid Ponzi Schemes
Key Prevention Steps:
- Reject guaranteed high returns: Anything over 1-2% monthly guaranteed = likely Ponzi. Real investments have risk.
- Verify regulation: Legitimate investments regulated by FCA/ASIC/SEC/etc. Check official databases.
- Understand the strategy: How exactly is profit generated? Vague answers ("AI bots") = red flag.
- Avoid offshore entities: Marshall Islands, St. Vincent = scam havens. No protection.
- Be wary of pressure: Urgency to deposit, pressure to reinvest = Ponzi tactics.
- Test withdrawals early & often: If delays or excuses = get out immediately.
✅ Legitimate Regulated Investments
Instead of Ponzis, use regulated brokers or platforms:
- Tier-1 Regulated Brokers: IC Markets, Pepperstone (learn to trade yourself).
- Regulated Copy Trading: eToro, Vantage ProTrader (copy experienced traders, still involves risk).
- Index Funds / ETFs: Low-cost, diversified, regulated market exposure (Vanguard, BlackRock).
All operate under real regulation. Returns NOT guaranteed but operations are transparent. See our broker rankings.