The UK Financial Regulator FCA often issues warnings about companies that act against consumer interests. Earlier, the regulator warned that Gainmax Capital organized the typical Ponzi scheme, which could soon collapse and seriously harm depositors in the company.
Gainmax Capital's site looks like a Ponzi classic scheme, promising guaranteed returns to users who register an account with the company. According to the information provided on the website, the company guarantees monthly profits from commodities, currencies and shares trading.
The worry in the case
The Gainmax Capital website makes it clear that customers who invest larger amounts will get a higher return. A differentiated return on investment chart reveals an excessively high return rate of 5% for depositors to $ 250 and up to 10% for those who feed over $ 10,000.
The investment horizon is also different. Those who submit a smaller amount commit themselves to holding their funds in Gainmax Capital for a minimum of 20 weeks, and large investments are only available after the 5th classical Ponzi scheme attribute, which forces investors to invest more.
The company's presentation is typical of fraudulent schemes, basically relying on a multilevel marketing strategy that is presented by "satisfied customers".
The main concern of the regulator is that warnings come too late. In the case of Gainmax Capital Operates from June 2017, time enough to raise a significant amount of the naive market.
Source: Finance Magnates
Jr Trader Petar Milanov
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