Bitonite – Is this related to the Cryptocurrency Ponzi Scheme? The Truth Exposed (Update 2024)
The following review explores the various red flags present in Bitonite. Before you consider investing with them, go through the following review:
Bitonite’s website does not provide any information about ownership or executives.
The domain name “bitonite.com” for Bitonite’s website was registered privately on January 19, 2023, with a redacted Austrian ip address.
The additional investigation uncovered their promotional materials that list the following three co-founders:
- Tanyel Tahtaci – CMO
- Mertkan Boyraz – CEO
- Denis Muric – CSO
He was unable to piece together Tanyel Tahtaci’s MLM background other than the fact that he is a crypto dude from Turkey. Mertkan Boyraz, an Austrian native, experienced the same thing.
Denis Muric is from Germany
Muric was advocating the MarketPeak Ponzi scam before helping to build Bitonite.
The three founding partners of this MLM scam have eventually all traveled to Dubai from their home countries.
How exactly does a Ponzi scheme operate?
An investment fraud known as a Ponzi scheme draws investors with claims of great returns and no risk but fails to invest the money as stated. Instead, it pays off earlier investors with money from future investors while maybe keeping a portion of the profits. These schemes typically fail when recruiting investors becomes challenging or when multiple investors attempt to cash out. They depend on a steady flow of new buyers to operate. They are called after Charles Ponzi, who ran a similar scam using postal stamps in the 1920s.
On its website, Bitonite lists the Marshall Islands as the location of its shell corporation. But Bitonite is being operated from the UAE as all three of its founding partners are headquartered in Dubai.
Given that Dubai is the world’s MLM crime center, Bitonite’s connections to Dubai raise an immediate red warning.
Bitonite doesn’t provide any goods or services for sale.
The only thing that affiliates may promote is Bitonite associate registration.
The Compensation Plan for Bitonite
Investments in Bitcoin’s USD counterparts are sought by Bitonite. On the promise of a passive exchange, this is accomplished.
Additionally, Bitonite provides a foreign investment program through which it seeks deposits ranging from $100,000 to $300,000.
The claimed monthly returns on Bitonite’s FX offering range from 3% to 10%.
The MLM portion of Bitonite offers profits on investments and commissions paid to associates that are acquired.
Ranks for Bitonite Affiliates
The pay structure here consists of twelve tiers.
They are as follows, along with their respective qualifying standards
| Product | The amount generated in downline investment volume |
| Bronze | $5000 ($250 must come from personally recruited affiliates) |
| Silver | $25,000 ($500 must come from personally recruited affiliates) |
| Gold | $50,000 ($2000 must come from personally recruited affiliates) |
| Platinum | $100,000 ($3000 must come from personally recruited affiliates) |
| Emerald | $250,000 ($6000 must come from personally recruited affiliates) |
| Diamond | $500,000 ($15,000 must come from personally recruited affiliates) |
| Executive | $1,000,000 ($25,000 must come from personally recruited affiliates) |
| Icon | $2,500,000 ($75,000 must come from personally recruited affiliates) |
| Ambassador | $5,000,000 ($150,000 must come from personally recruited affiliates) |
| Crown | $10,000,000 ($250,000 must come from personally recruited affiliates) |
| Legend | $25,000,000($750,000 must come from personally recruited affiliates) |
| President | $50,000,000 ($1,500,000 must come from personally recruited affiliates) |
Recurring Commissions
This MLM scam uses a unilevel compensation scheme to pay residual commissions.
A referral partner is put at the head of a unilevel team in a unilevel pay system, and each affiliate they recruited is positioned immediately under them (level 1):
If any level 1 affiliate brings on new affiliates, the new affiliates are assigned to the existing affiliate’s unilevel team at level 2.
If any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on and so on down a theoretically unlimited variety of degrees.
Bitonite restricts the number of pay-per-level team levels to eight.
The following are the eight levels at which residual commissions are paid as a proportion of passive returns made to affiliates:
level 1 (personally hired affiliates): 4.75 percent
- level 2 – 3%
- level 3 – 2.75%
- level 4 – 2.25%
- level 5 – 1.75%
- level 6 – 1.5%
- level 7 – 1.25%
- level 8 – 0.75%
Keep in mind that Bitonite affiliates need to meet certain requirements to get payouts from level 3 to level 8:
- You must personally spend $500 to be eligible for level 3 residual commissions.
- You must personally invest $1,000 to be eligible for level 4 residual commissions.
- A personal $2500 investment is needed to qualify for level 5 residual commissions.
- A personal $4000 investment is needed to qualify for level 6 residual commissions.
- A personal $6000 investment is needed to qualify for level 7 residual commissions.
- You must personally invest $8000 to be eligible for level 8 residual commissions.
Trading Commissions Fees
When bitcoin is added to Bitonite’s trading platform, a charge is taken.
At each of the following three stages of hiring, a commission on this charge (up to 12.5%) is given:
- level 1 – 25%
- level 2 – 15%
- level 3 – 10%
Educational Package Commissions
Bitonite offers “education packages” for sale. However, we do know that they pay commissions on education package sales down three levels of recruiting even though pricing is not disclosed in their advertising materials:
- level 1 – 20%
- level 2 – 15%
- level 3 – 10%
- level 4 – 5%
Foreign Exchange Commissions
On the money deposited into its currency plan, it pays a commission.
- Get $400 by bringing in an associate who invests $100,000.
- Obtain $800 by bringing in an affiliate who invests $200,000
- Obtain $1120 for referring an affiliate who makes a $300,000 investment.
Throughout the various “phases” of the FX system, further residual commissions are paid.
Conclusion
Bitonite purports to trade in cryptocurrencies and foreign exchange to provide passive profits. A securities offering is what this is.
Evidence that Bitonite has registered its securities offering with financial regulators in the countries where it is seeking investments is something the company does not provide.
The US (25%), Finland (20%), the Netherlands (16%), France (15%), and Egypt (14%), according to SimilarWeb, are the main countries sending visitors to their website.
We can establish that neither Bitonite nor its co-founders are registered by conducting a fast check of the SEC’s openly accessible Edgar database.
As a result, it is at the very least committing securities fraud. MLM organizations that execute Ponzi schemes go hand in hand with securities fraud.
It should be obvious that extending educational benefits to investment fraud does not make it acceptable
Bitonite provides trading outcomes that cannot be verified rather than conducting business legally and registering with financial regulators:
This information is useless for MLM due diligence, even though it doesn’t replace registration with financial regulators.
In Bitonite, two unidentified crypto brothers and a previous Ponzi marketer are involved. They randomly connected with a group of traders, and now they are providing passive returns of up to 10% every month.
With Dubai included, Bitonite appears to be operating a Ponzi scam. By not marketing to or selling to retail clients, something has a pyramid scheme attached to it.
Affiliate recruiting will stop, just like new investments will, as is the case with all MLM Ponzi schemes.
This will deprive Bitonite of ROI income, leading to an eventual collapse.
Ponzi schemes are mathematically designed to fail with the majority of participants losing money.
