Amid claims of fraud, Treasure NFT, a digital trading platform that promotes AI-driven NFT investments with huge returns, is being investigated. Financial experts and regulatory agencies have severe concerns about the platform because of several red flags that indicate it functions as a Ponzi scheme.
Unrealistic Profit Promises
Treasure NFT was once promoted as a decentralized NFT marketplace, with monthly earnings of up to 30% and daily yields of 4.3% to 6.8%. Experts, however, have referred to these numbers as unsustainable and cautioned that financial scammers are known for their profit guarantees.
Targeting Vulnerable Communities
According to investigations, Treasure NFT mostly targets those who are less educated and economically underprivileged, especially in Sindh, Balochistan, and Pakistan’s tribal areas. The platform’s reliance on a referral-based investment model raises the possibility that, rather than from actual NFT transactions, its income comes from luring new investors.
Ponzi Scheme Indicators
Treasure NFT’s operational model closely mirrors that of a Ponzi scheme, where earlier investors receive payouts funded by new entrants. This structure creates an illusion of profitability but is destined to collapse when new investments decline, leaving late-stage investors with substantial financial losses.
Dubious Company Registration and Fake Identities
Inconsistencies in Treasure NFT’s registration facts have been discovered after more investigation into its history. Records connect its stated address to a Russian music academy, despite the fact that it states Tempe, Arizona, as its headquarters. Investigations also showed that LinkedIn profiles allegedly belonging to the company’s executives were fake, lacking operational transparency and verifiable qualifications.
Concerns Over Fund Accessibility
Numerous complaints from users suggest that Treasure NFT restricts account access, with reports of frozen accounts and withdrawal requests being denied or indefinitely delayed. Users attempting to contact customer support have reportedly received no responses, further fueling suspicions of fraudulent activity.
Deceptive Marketing Tactics
Treasure NFT employs misleading marketing techniques, including falsified testimonials from newly created accounts to fabricate positive reviews. The company’s dependence on a referral-based structure rather than genuine NFT trading underscores concerns that it is operating a pyramid scheme rather than a legitimate business.
Regulatory Investigations Underway
Despite its claims of holding a Money Services Business license from the U.S. Financial Crimes Enforcement Network (FinCEN), there is scant evidence that Treasure NFT is legally compliant. Reports indicate that regulatory authorities in India and West Bengal have launched investigations into the platform’s operations.
Financial Experts Urge Caution
Financial analysts encourage prospective investors to perform extensive independent investigation prior to interacting with any platform that guarantees returns, as there is growing evidence that Treasure NFT is a fraudulent scheme. Experts advise against funding schemes that rely on income models based on recruitment, stressing the significance of confirming a platform’s credibility through reliable sources.
Investors are being advised to proceed with extreme caution and to stay alert against financial scams that pose as profitable investment opportunities, since regulatory organizations are currently closely examining Treasure NFT.
