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G44 Brazil does not keep promise and customers accuse company of being a financial pyramid

Cryptocurrency

Gala party promoted by G44 Brasil, in Brasília. Company denies being a financial pyramid scheme.
Photo: Reproduction / G44 Brasil

The target of investigations by the Justice and alert by the CVM (Securities and Exchange Commission), G44 Brasil gave yet another reason to make its investors worried. The company based in Taguatinga (DF) breached cancellation agreements signed last November and raises suspicions that a large default has been consummated.

According to customers heard by the report, G44 alleges liquidity problems to make all payments – there would be about 10,000 investors, according to unofficial customer estimates. For this reason, the company would have asked for the cancellation in late November 2019.

In a statement distributed at the time, G44 attributed the problems to technical difficulties, cyber attacks and what it called “fake news in various media”. On the same occasion, it announced the end of contracts signed under the modality of SCP (Sociedade em Conta de Participação).

“With the growth of our company, we achieved our goals, however, the latest events have led us to decide to discontinue all contracts signed under the SCP – Partnership Account, SCP – SPRINT 200 and SPRINT 250” , says excerpt from the statement.

Last October, amid reports of late payments, G44 threw a luxurious party in a prime area of ​​Brasilia to celebrate the company's two-year anniversary.

Broken promise

The deadline for this cancellation was 90 days and expired last Tuesday (25). Several customers complain about the delay on the company's social networks, on WhatsApp groups and on the Reclame Aqui platform – on which G44 has a “bad” reputation.

The cancellation announcement prompted G44 customers to gather in groups on WhatsApp to understand what was going on. The company's failure to keep its promise raised fears of a large default.

The cancellation, however, contrasts with a new customer acquisition front opened by G44. According to customers, those who adhered to this plan have been receiving remuneration, while thousands continue without seeing the color of the money invested.

"All of this leads one to believe that they (the company's directors) are actually operating pyramids and deceiving those who have joined," said a client who requested anonymity. With R $ 20,000 invested in the company, he has little hope of getting the money back, but says he will sue the G44 in court.

However, there are customers who contributed much higher amounts – the minimum investment, according to them, was R $ 10,000. The size of the default is estimated at millions of reais.

What the company says

G44 defines itself as a “corporate holding company that manages companies in the technology segment in cryptocurrencies, mining of stones and precious metals and providing services”. She is also responsible for the exchange Inoex.

Sought by the report to comment on the recent complaints, the G44 did not manifest itself until the closing of this text.

As for complaints of delays in Reclame Aqui, the company has responded on the platform itself that is responding to requests. G44 also says it sends e-mails informing customers about the status of each cancellation.

Regarding the accusations of being a financial pyramid, the G44 said last November that it was a "defamation rumor". As for the CVM alert, he said that it is not regulated by the autarchy, but only by the Civil Code.

However, at the end of 2019 the company recognized liquidity problems. G44 stated that "its activity‘ grew at a fast pace 'and that its banking limits have become small for the number of transactions carried out. "

According to a November 2019 report by the newspaper Correio Braziliense, the G44 was targeted by the local Public Ministry and the Civil Police, accused of operating a financial pyramid scheme.

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