To summarise this I would outline what you expect to see in the 2 different possible scenarios.
The 1st scenario is that the company has found a way to consistently earn extremely high returns. They have decided to maximise their gains by making it possible for the public to invest in their company. If this scenario is true then the long dreamed of way to easily become rich quickly has finally been found and you would be foolish not to get involved.
The 2nd scenario is that they have created a fictional company and in fact this is a Ponzi scheme. People are paid out according to what their account balances show, but the money is not coming from Forex trading but from new people joining. This is a significant financial fraud and eventually it will come to an end with significant losses made by people who have recently joined and others who have invested large amounts of money. The architects of the Ponzi scheme may well get away with this but there is likely to be some criminal convictions for those involved with promoting it.
So this is what I would expect to see:
| Scenario 1 | Scenario 2 |
|---|---|
| Legitimate Investment Company | Ponzi Scheme |
| The required government registrations would be acquired before offering investments to the public. | The investment scheme would operate as long as possible without registration, making excuses to convince people that the operation is legal. Warnings from government regulators will accumulate over time as more countries investigate the business. |
| Use regular banking in order to satisfy the requirements of transparency as stipulated by government regulators. | Make all transactions in bitcoin so that there is no financial evidence of a crime being perpetrated. |
| The very spectacular returns generated will create sufficient interest that marketing will occur naturally through financial media. Experts will analyse how the returns are being generated and this will grow the company through the interest generated. | Market this using an MLM structure as this incentivises others to do the recruiting. Create a complicated structure that rewards recruitment and reinvesting funds and create penalties for withdrawing funds. |
| Funds will be deposited for a specified period and interest compounded and paid at the end, as normally happens for a managed fund. | Make regular weekly payments. This will reassure people that the scheme is not a scam and will convince many that the business is legitimate. |
| Create and publish videos showing development of the office, live trading and so on in order to convince people that the business has a physical location and is actually trading | |
| Register the company in a country that has respected financial regulations and enforcement. | Register the company in Panama where financial crime is tolerated. |
From the above it should be obvious what my opinion of this business is. In every aspect CashFX is showing itself to be a ponzi scheme. This explains the overwhelming amount of negativity about this company on the internet as people try to warn others of the obvious signs. If you get involved you may not actually lose all your money and you may even make a profit, but it will be at the expense of others who will lose out when it comes to an end and also you will be involved in a significant financial crime.
The 1st very obvious sign is the consistent 5% per week. This really is too good to be true and like all get rich quick schemes that have been going for hundreds of years it can’t be true. If you then add the fact that all payments are in bitcoin it becomes even more obvious that this is not what it seems. The use of bitcoin is an obvious sign of a scam and is definitely not used for legitimate investment schemes. Then you add a fake Panama office, government warnings, complicated MLM structure, over the top sales spin and so on and there is absolutely no doubt at all what is going on here.