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After default of R $ 55 million, Midas Trend wants to create new financial pyramid


Deivanir Santos, responsible for Midas Trend (Photo: Reproduction / Youtube)

In a new chapter of the Midas Trend saga, Deivanir Santos, the company's CEO, tried to deflect the focus because he disappeared with the clients' money and promised to create a new company to start making payments.

In a new live held on Wednesday (22), Santos calls the new platform Midas Trend 2.0, and that it will be created from scratch. The new platform will go live on Monday (27). The company's only product will be Bot Midas, the same as in the past.

In addition, the president stated that he will put all his remaining money to work on the alleged Midas Trend arbitration robot. The robot, however, has never been proven to actually exist.

The main objective, according to him, is to pay people who are at a loss and have not yet recovered the initial investment.

The hacker story

In a live held last week, Deivanir said he had been hacked. “They stole our bitcoins. Not only those of the company but even mine personally. ”

As he reported, on the last 12th they transferred the bitcoins of a Trezor (physical bitcoin wallet) to the exchange, which, according to him, would already be compromised security.

According to Deivanir, a day earlier they suspected that someone had invaded and hijacked the DNS (acronym for domain name system) of the platform to steal information. Even so, the next day the transfer was made.

“We took the bitcoin from Trezor and put it on our exchange. Since these hackers already had access to our DNS, what happened? They stole our bitcoins, ”he explained.

However, the version was denied by expert Everton Melo, in conversation with the Bitcoin Portal.

"There is no direct connection between Trezor, his platform and the network with compromised DNS," he said. “There is no way for you to connect these media. Sending Trezor's balance to an exchange does not depend on the website's DNS, but only on the bitcoin network ”.

“By default, people allocate this to a domain on GoDaddy, for example, and leave the site there. The exchange does not have physical access to the wallet. Someone would have to have physical access to Trezor to a computer to make the transfer later, the networks do not communicate, the manufacturer requires OTG connection, it has no connection with DNS ”, he explained.

Another point, according to Melo, is to report on DNS abuse. As he explained, “in the case of leased domains, not only by one company, a DNS can be used by several companies, to the point that there would be several other frauds, not only with the exchange”.

According to the expert, if there was any type of wrongdoing, “at the very least the affected company would have to have reported it to the authorities, so there was an investigation to independently mitigate damage, so that the damage would have been less, and abuse of third party assets would have been mitigated ”.

Midas Trend worked in the form of a financial pyramid

The international website Behind MLM, which specializes in detailing and reporting ponzi schemes, published about how Midas Trend worked.

According to the website, MidasTrend does not have products or services available. The only form of revenue was the marketing of Midas Trend's affiliation. Investors invested reais with the promise of guaranteed return.

According to the website, the trading robot they advertised worked with the following returns:

  • Robot 1 – invest R $ 130 and receive R $ 380
  • Robot 2 – invest R $ 380 and receive R $ 800
  • Robot 3 – invest R $ 800 and receive R $ 1300
  • Robot 4 – invest R $ 1300 and receive R $ 3000
  • Robot 5 – invest R $ 3000 and receive R $ 8000
  • Robot 6 – invest R $ 8,000 and receive R $ 80,000

MidasTrend did not provide a timeline for completing the return.

In addition, Midas Trend also offered residual and binary bonuses.

A binary pay structure puts an affiliate on top of a binary team, divided into two sides (left and right):

Image released by the BehinhMLM website to illustrate the binary bonus

The first level of the binary team houses two positions. The second level of the binary team is generated by dividing these first two positions into two other positions each (4 positions).

Subsequent levels of the binary team are generated as needed, with each new level housing twice as many positions as the previous level.

Binary team positions are filled through direct and indirect recruitment of affiliates. There is no limit to the depth of a binary team.

Affiliates received 10% of funds invested in the weakest side of the binary team at the end of each day.

Once paid, the funds are combined with the stronger side and released. The remaining volume on the stronger side of the binary team is transferred.

Residual commissions (5 × 6 matrix)

The other form of gain, residual commissions, is similar to binary. A 5 × 6 array places an MidasTrend affiliate on top of an array, with five positions directly below them:

Image released by the BehinhMLM website to illustrate the residual bonus

Note the similarity of the images to clear financial pyramid schemes.

These five positions form the first level of the matrix. The second level of the matrix is ​​generated by dividing these five positions into five other positions each (25 positions).

Levels three to six of the matrix are generated in the same way, with each new level housing five times more positions than the previous level.

Headquarters positions were filled by recruiting MidasTrend affiliates.

Each MidasTrend affiliate had to pay a monthly fee of R $ 24.90. MidasTrend charges this fee and uses it to pay commissions on matrix positions filled as follows:

  • R $ 0.50 per position filled in level 1 (5 positions)
  • R $ 1 per position filled at level 2 (25 positions)
  • R $ 1.50 per position filled at level 3 (125 positions)
  • R $ 2 per position filled at level 4 (625 positions)
  • R $ 2 per position filled at level 5 (3125 positions)
  • R $ 3 per position filled at level 6 (15,625 positions)

The matrix's residual commissions were paid monthly, while the matrix's affiliates continued to pay their monthly fee of R $ 24.90.

Finally, the website concludes that there is no evidence that the Midas Trend trading robot actually worked and that there is also no evidence that MidasTrend used BotMidas revenue or any other external source of revenue to pay affiliates.

"The math behind the Ponzi schemes ensures that when they collapse, most investors lose money," concludes the website.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.