RainbowEx fails to offer possession or government data on its web site.

RainbowEx’s web site area (“rainbowex.life”), was was privately registered on July 2nd, 2024.

If we have a look at the source-code of RainbowEx’s web site, we discover it’s localized to Chinese language:

This means whoever is operating RainbowEx has ties to China.

As at all times, if an MLM firm just isn’t overtly upfront about who’s operating or owns it, assume lengthy and laborious about becoming a member of and/or handing over any cash.

RainbowEx’s Merchandise

RainbowEx has no retailable services or products.

Associates are solely capable of market RainbowEx affiliate membership itself.

RainbowEx’s Compensation Plan

RainbowEx associates make investments tether (USDT). That is performed on the promise of an ongoing passive return.

RainboxEx pays referral commissions on invested USDT down three ranges of recruitment (unilevel):

• degree 1 (personally recruited associates) – 20%
• degree 2 – 15%
• degree 3 – 10%

Becoming a member of RainbowEx

RainbowEx affiliate membership is free.

Full participation within the hooked up revenue alternative requires an undisclosed minimal funding in USDT.

RainbowEx Conclusion

RainbowEx is one more “click on a button” app Ponzi scheme. Whereas the underlying fraud is similar although, RainbowEx is about up a little bit in a different way.

Since inception a couple of months in the past, RainbowEx has been pillaging Argentina.

As of September 2024, SimilarWeb tracked 3.5 million month-to-month visits to RainbowEx’s web site. 95% of that site visitors originated from Peru. The remaining 5% is break up between Chile and Peru.

Hooked up to RainbowEx we have now one thing known as Knight Consortium.

Knight Consortium is about up on the area “knightconsortium.com”, first registered in October 2023.

Knight Consortium is represented to be run by what appears like AI generated avatar executives:

In actuality Knight Consortium is run by the identical Chinese language scammers behind RainbowEx:

On behalf of Knight Consortium, Argentinian RainbowEx promoters have arrange native charity drives. That is an try at legitimacy through misdirection; donate a bit to native charities while financially plundering Argentina on a large scale.

To be clear, any actions exterior to RainbowEx’s underlying fraud doesn’t justify mentioned underlying fraud. This consists of something related to the hooked up Knight Consortium advertising arm.

RainbowEx’s “click on a button” Ponzi ruse is buying and selling alerts:

The offered ruse is RainbowEx associates log in and click on a button (the extra invested the extra the button must be clicked).

Clicking the button purportedly ties into executing supplied buying and selling alerts. For some cause RainBowEx can’t execute these trades on their very own, as a substitute choosing the ruse of sharing buying and selling earnings with traders.

If that is mindless it’s as a result of it doesn’t. Why get randoms to click on a button in a dodgy app when you would simply execute the trades your self?

In actuality clicking a button inside RainbowEx’s app does nothing. All RainbowEx does is recycle newly invested funds to pay earlier traders.

RainbowEx is a part of a gaggle of “click on a button” app Ponzis which have emerged since late 2021.

Examples of already collapsed “click on a button” Ponzis utilizing the identical app ruse embrace SDT Quant,  Pitrex, and TOST.

Since 2021 BehindMLM has documented a whole bunch of “click on a button” app Ponzis. Most of them final a couple of weeks to a couple months earlier than collapsing.

“Click on a button” app Ponzis disappear by disabling each their web sites and app. This tends to occur with out discover, leaving nearly all of traders with a loss (inevitable Ponzi math).

Argentina’s La Nacion reported RainbowEx disabled withdrawals on Monday, October 14th. Shortly after a “regulators!” exit-scam was rolled out;

The message is titled: “Necessary discover from Rainbow Change: Preparations for withdrawal from the Argentine market and account activation.”

Then, it says: “Expensive Argentine customers:As a result of settlement reached between Rainbow Change and native regulators, We are going to formally withdraw from the Argentine market and totally replace the platform.

To make sure a clean progress of this adjustment, all Argentine and associated accounts will likely be reset to an inactive state.”

To be clear to anybody studying this, RainbowEx has not reached any agreements with any regulators. Arising with baloney exit-scams is typical of Chinese language app Ponzis.

As a part of its exit-scam RainbowEx initiated a restoration rip-off. RainbowEx traders have been advised withdrawals could be re-enabled in the event that they paid an 88 USDT payment.

La Nacion studies that as of October fifteenth, an extra 230,000 USDT has been fleeced from gullible RainbowEx traders.

RainbowEx withdrawals stay disabled.

Argentinian authorities raided two prime native RainbowEx promoters final week. This seems to be the precise cause the Chinese language scammers behind RainbowEx pulled the plug.

Eduardo Maximiliano Braga was one of many raided suspects. He’s accused of stealing over 320,000 USDT by RainbowEx.

Luis Alberto Pardo is the second raided suspect. Pardo is accused of stealing a minimum of 223,083 USDT by Rainbow Ex.

The Chinese language scammers behind RainbowEx, doubtless working out of Dubai or Asia, stay at giant.

Organized crime pursuits from China function rip-off factories behind “click on a button” Ponzis, usually from south-east Asian international locations.

In September 2024, the US Division of Treasury sanctioned Cambodian politician Ly Yong Phat over ties to Chinese language human trafficking rip-off factories.

By numerous firms he owns, Phat is alleged to shelter Chinese language scammers working out of Cambodia.

No matter which nation they function from, the identical group of Chinese language scammers are believed to be behind the “click on a button” app Ponzi plague.