Rypex Trade Review  –  Ponzi Scheme  – MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 8th of April 2020 and was later updated on 2020–06–29.

According to the company’s marketing materials, Phillip Orr is the CEO of the company. We tried to do some background check, but we couldn’t find anything about the guy. This simply means that Phillip doesn’t exist anywhere outside the company’s marketing materials.

On the official YT channel of the company, all the videos are shot in a virtual office. People involved in the videos looked like hired actors.

In an attempt to look legitimate, the company claims itself as a British company and also provides a U.K incorporation certificate.

Fact: The U.K. is one of the most favourable jurisdictions for scammers, and 90% of all the shady MLMs are registered in the U.K. Also, U.K. incorporation is dirt cheap.

At the time of writing this article, Alexa cites Vietnam (30.9%), Bangladesh (12.8%) and Turkey (4.5%) as top sources of traffic to Rypex Trade’s website. It is highly likely that the admin is operating from any one of these countries.

Rypex Trade’s Products

The company has no retail option to speak of. They are only offering their affiliate membership program.

Rypex Trade’s Compensation Plan

The company’s affiliates put their funds on the table on the promise of advertised returns:

  • Robo 1 — invest anywhere between $50 to $300 and get a 112% ROI over nine to twelve days
  • Robo 2 — invest anywhere between $301 to $2000 and get a 128% ROI over seventeen to twenty-four days
  • Trader 1 — invest anywhere between $2001 to $15,000 and get a 143% ROI over twenty-three to twenty-nine days
  • Trader 2 — invest anywhere between $15,001 to $50,000 and get a 169% ROI over thirty-one to thirty-nine days
  • Trader 3 — invest anywhere between $50,001 to $500,000 and get a 122% ROI over forty-one to fifty-one days
  • Binar 1 — invest anywhere between $50 to $15,000 and get a 270% ROI over ninety to one hundred and twenty-three days
  • Binar 2 — invest anywhere between $15,001 to $100,000 and get a 320% ROI over eighty-seven to one hundred and twenty-four days
  • Binar 3 — invest anywhere between $100,001 to $1,000,000 and get a 410% ROI over eighty six to one hundred and twenty-one days

The company accepts bitcoin, litecoin and ethereum.

Rypex Trade Affiliate Ranks

Rypex Trade’s compensation plan has a total of ten affiliate ranks. Each rank has its own qualification criteria, and they are as follows:

  • Leader 1 — sign up as a Rypex Trade affiliate
  • Leader 2 — invest a minimum of $300 and get others to invest a minimum of $5000
  • Leader 3 — invest a minimum of $1000 and get others to invest a minimum of $20,000
  • Leader 4 — invest a minimum of $2000 and get others to invest a minimum of $50,000
  • Leader 5 — invest a minimum of $3000 and get others to invest a minimum of $100,000
  • Leader 6 — invest a minimum of $5000 and get others to invest a minimum of $250,000
  • Leader 7 — invest a minimum of $7500 and get others to invest a minimum of $500,000
  • Leader 8 — invest a minimum of $10,000 and get others to invest a minimum of $1,000,000
  • Leader 9 — invest a minimum of $15,000 and get others to invest a minimum of $2,500,000
  • Leader 10 — invest a minimum of $50,000 and get others to invest a minimum of $5,000,000

Referral Commissions

The company also pays referral commissions using a unilevel compensation structure, capped at twenty team levels.

All these commissions are paid as a percentage of invested across these twenty levels as follows:

  • Leader 1 ranked affiliates get rewarded 6% on level 1 (direct recruits), 2% on level 2 and 1% on levels 4 and 5
  • Leader 2 ranked affiliates get rewarded 6% on level 1, 2% on levels 2 and 3 and 1% on levels 4 and 5
  • Leader 3 ranked affiliates get rewarded 7% on level 1, 3% on level 2, 2% on level 3 and 1% on levels 4 to 6
  • Leader 4 ranked affiliates get rewarded 8% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on levels 7 to 9
  • Leader 5 ranked affiliates get rewarded 8% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on levels 7 to 9
  • Leader 6 ranked affiliates get rewarded 8% on level 1, 5% on level 2, #% on levels 3 and 4, 2% on level 5, 1% on levels 6 and 7 and 0.5% on levels 8 to 11
  • Leader 7 ranked affiliates get rewarded 9% on level 1, 5% on level 2, 4% on level 3, 3% on level 4, 2% on levels 5 and 6, 1% on levels 7 to 9 and 0.5% on levels 10 to 12
  • Leader 8 ranked affiliates get rewarded 9% on level 1, 6% on level 2, 5% on level 3, 4% on level 4, 2% on levels 5 and 6, 1% on levels 7 to 10 and 0.5% on levels 11 to 15
  • Leader 9 ranked affiliates get rewarded 10% on level 1, 6% on level 2, 5% on level 3, 4% on level 4, 3% on level 5, 2% on levels 6 and 7, 1% on levels 8 to 13 and 0.5% on levels 14 to 18
  • Leader 10 ranked affiliates get rewarded 12% on level 1, 7% on level 2, 5% on levels 3 and 4, 3% on levels 5 and 6, 2% on levels 7 and 8, 1% on levels 9 to 15 and 0.5% on levels 16 to 20

Rank Achievement Bonus

  • Leader 2 get $100
  • Leader 3 receive $250
  • Leader 4 receive $500
  • Leader 5 receive $1500
  • Leader 6 receive $2000
  • Leader 7 receive $5000
  • Leader 8 receive $10,000
  • Leader 9 receive $25,000
  • Leader 10 receive $50,000

Joining Rypex Trade

Joining Rypex Trade affiliate membership is free. However, full participation in the attached income opportunity requires a minimum investment of $50. The maximum one can invest $1,000,000.

Conclusion

The company claims of generating external income through automated trading technologies, no specifics given about the same. We couldn’t find any evidence from the company that would allow them to back this claim. No evidence of any kind of trading taking place is provided.

Passive Income

The company is pitching a passive income scheme that would likely get them in trouble with financial regulators because when any MLM company offers a passive investment opportunity, it’s classified as a securities offering. Rypex Trade is not registered with the FCA, meaning the company is illegally offering securities.

Affiliates might also be liable for securities fraud by promoting unregistered securities.

As we all know, the only verifiable source of income going into the company is the new investment.

This is simple maths:

You invest money into the program and then pitch others the same plan. Your income directly depends upon the number of recruits you do and the volume of the investment your affiliates do.

And just like all other MLM Ponzi, when the funds stop coming in, the payouts will end, and it will trigger a system collapse.