Nesten – Ponzi Scheme and Investment Scam

Nesten is a decentralized platform with an extremely shady leadership. Its founders have a history of running investments scams. 

The people behind Nesten are Park Nam-ho and Sunny Sun who have roped in Andrew Baek to become the face of their new scam. 

nesten ceo

Before, they used to run a highly notorious investment scam called Mining Max. The business model of Mining Max was quite similar to Nesten. Also, because Park Nam-ho had the funds from the previous scam, it was easy for him to launch a new company. 

Currently, Nesten targets christians in particular. Sources reveal that they are targeting church-goers and promoting the scheme among them as an ‘alternative investment’.

Furthermore, Park Nam-ho and Sunny Sun have used their funds to get Andrew Baek who has a strong academic background. Probably, they did this to add more credibility to their brand. 

To understand how Nesten is scamming consumers, you will need to understand the past venture of Park Nam-ho and Sunny Sun: Mining Max.

The Crypto Scam of Mining Max and Its Connection to Nesten:

For US residents, Mining Max might not be a familiar name. However, it was a major scam in Korea. The fraudulent scheme was able to generate around $80 million for its formulators, namely Nam-Ho Park and Sunny Sun. 

Mining Max succeeded in getting many investors through the false promise of generating profits through Ether mining. 

By 2018, Mining Max had become one of the largest cryptocurrency scams in Korea. Media reports reveal that it was the brainchild of Sunny Sun, younger sister of Paul Sun and Nam-Ho Park.

They formulated the scheme in the US and launched it in Korea. 

The English name of Nam-Ho Park is Daniel Park. He was the CEO of Mining Max and had performed a similar scam through the GSM Card multi-level scheme. Currently, he is running Nesten. 

nesten news

Through that scheme, he was able to sell 120,000 units in the US and Korea. 

Also, reports indicate that he had already made a fortune in Korea by committing similar frauds. 

Because the amount of money lost among individual victims was small, nobody bothered to report his initial scam. 

Judging from the scale of the operation, media reports estimated that the scam was worth tens of billions of won (Korean currency).

When the Nesten founder was running the GSM card scheme, he had already begun working on Mining Max. Moreover, he invested most of the money he made from the multi-level card scheme into the crypto mining venture. 

Then, he created a real estate and entertainment company along with pseudo-subsidiaries such as Inomite and Innochain. 

nesten
A photo of Nam-ho Park

Why did he establish so many expensive companies? 

Media reports suggest that these companies helped Park clean the money he had made from his fraudulent schemes. Apparently, he took the help of his lawyer friend, Lee Jin-ho for this task. 

How The Scam Worked:

Sunny Sun is a real estate broker who partnered with Nam-ho Park to run this scam. 

In 2016, Ethereum was gaining popularity as the new and powerful cryptocurrency. The duo recognized the potential in this cryptocurrency and began marketing Ethereum mining machines. 

With Mining Max, you would get an Ethereum mining machine for 2 years at a 80:20 share on the mined coins. 

Certainly, they have replicated this model with Nesten where clients have to buy machines as well. 

Although Mining Max seemed attractive at first, the mining machines weren’t generating enough cryptocurrency to distribute amongst investors. 

So, they began following a multi-level marketing approach. It worked. 

That is why I believe Nesten is a dangerous scam. It is following the footsteps of Mining Max but the difference is in the targeted demographic. 

Mining Max was able to raise 270 billion won and to deliver over 18,000 Ethereum mining machines. If you include the Korean Americans, the size of the scam might increase up to $80 million.

The number of machines they actually delivered was merely 10% of the total orders they received. Furthermore, the company producing these mining machines wasn’t a proper firm. 

In fact, it was a poor assembly plant which didn’t manufacture most of the machines properly. So, it stopped shipping within a few months. 

I suspect Nesten is on the similar path. It doesn’t share much details about the manufacturer of its “machines” and markets itself as a company that wants to ‘decentralize’ processes. 

Sunny Sun Managed the Scam in the US:

nesten founder
Sunny Sun’s photo

According to media reports, Sunny Sun was managing this scam in the US. She was incharge of getting Korean Americans to invest in the scam. 

That experience must be playing a huge role in deciding who to target for Nesten in the US.

When they were running Mining Max, they kept increasing the price of the miner and the victims didn’t even question it. They were investing their savings, including their retirement funds for this scam. 

Basically, they were misleading investors into thinking they were buying mining equipment while in reality, they were only investing in their mining business.

Park Nam-ho, Sunny Sun and Lee Jin-ho keep claiming that it’s not their fault thousands of people lost their investment. 

Rumors say Sunny Sun underwent plastic surgery with the money she made from this fraudulent scheme. 

For example, a 44-year old housewife had invested 60 million won into this scheme. Like her, there are hundreds of victims who lost their hard-earned savings. 

How Nesten is a Replication of Mining Max:

Now that you know the scope of Mining Max and how it scammed thousands of Korean consumers, it would be easier for me to highlight how Nesten is doing the same thing here in the US.

The company has a shady website which doesn’t share any details about its ownership. Why? 

Probably, because they don’t want potential victims to find out about their shady past. 

Sources reveal that Sunny Sun and Nam-ho Park are promoting Nesten among church goers. They are making the same claims they made with Mining Max. Moreover, the result is the same.

Consumers are getting promised that they will earn great returns from the mining equipment they are investing in. Also, Nesten is putting off the delivery of additional equipment just like Mining Max.

However, because the scam is running in the US, the scale of this scam can be substantially higher. 

I believe Nesten can easily turn into a $50 million+ scam within a few years. 

nesten
(Source)

Currently, their PR articles say that the company will sell its blockchain technology through ‘network hubs’.

Sunny Sun and Park Nam-ho are living in Irvine and they have started targeting local residents. 

A female pastor has begun promoting their product among missionaries, evangelists and clerics. She promises them that they will use the revenue for missionary work so many are promoting this scam readily. 

Furthermore, the pastor tells the christian victims that she invested in Nesten with hope. Some pastors who have made substantial investments in Nesten are Kwon Sa Kim and Mo Park. 

Nesten Machines Don’t Arrive, Buyers Get Anxious:

Still, even though many people have bought mining machines from Nesten, they haven’t received the equipment. It’s been over a year since they placed their orders. 

To counter the dissatisfaction among various investors, Nesten began handing out their coins to them. Those who haven’t received their machine are getting 15 coins per machine. 

Also, the price of one G1 machine is 3500. At the time Nesten was handing them out coins, the value of the coin was around $20 but now it has fallen to ten cents or less. 

Furthermore, sources have revealed that Nam-ho Park and Sunny Sun are planning to buy land to start a nursing home business. Beware. 

More Information About Nesten:

Clearly, a huge reason behind the current success of Nesten is its CEO and CTO Andrew Baek. After all, he is the face of the company. 

According to his social profiles, Andrew Baek is based in Tustin, California. Before running Nesten, he was a member of technical staff at Lucent Technologies Bell Labs from 1997 to 2001. 

Then, he became the CEO of Troicom from April 2005  and has been at that position since. 

Also, he is also the CEO of Citius Systems.

Andrew Baek has a BA in Physics from Cornell University and a PhD in Electronics and Communications Engineering from University of Pennsylvania.

Surely, he seems like a perfect candidate to make the face of a company. Nobody would suspect the intentions of the company when its CEO & CTO is highly qualified. 

There are plenty of red flags in Nesten. 

For example, their website doesn’t give much information about the company except sharing some basic details about blockchain and decentralization: 

nesten website

There is no “About Us” page on their website, another huge red flag: 

nesten

In fact, Nesten doesn’t even give a contact number or an office address. 

Also, the Quick Start guide has plenty of mentions of their G1 device. Considering the company pays out its clients through their own “wallet”, I don’t think many investors will be getting any actual money. 

tCF6nhbJEuL17qOjotF4Fi3IRddPjB1Z7tnr9wSeVooEgqOJZC0xaQZtgutWUgZpP mfTVMz5yNLk X1qlH9vZ1DaaGd3XOe0OF7QvvFuhm6QXzVht2dmo1GFRw7HlaWkYyhdYuAQ72xw GXY2SswwgsMteGH7xDtFZAJ447f6kxTqm1ryda 8shXQ

There are plenty of scams that utilize the tactic of paying ‘fake’ money. For example, QuinReward is a company that’s facing charges of fraud because it promises to pay people in points in exchange for actual funds. 

Another scam that utilizes this tactic is Tiger Trade Copy. They have received complaints for showing ‘fake trades’ on their platform and rigging them to charge heavy fees. 

Such scams are becoming increasingly popular. 

Conclusion

After reviewing the media reports and seeing the history of Nesten’s leadership, it’s obvious that the company is a scam. 

Nam-ho Park and Sunny Sun have deliberately avoided putting their names on Nesten’s website to make it seem legitimate. 

They are using Andrew Baek as a face to make sure the company gets ample investors. 

There are plenty of investment scams in the market such as Whisky Cask Company and MSP Limited.

So, beware.

2 Total Score
MLM Scam

Nesten claims to be a blockchain company but its business model indicates it’s nothing more than a Ponzi scheme. The company’s leadership has a history of running similar scams in Korea and the US.

2.8Expert Score
Trust
2.8
Experience
3.3
Concern for Investors
2
Ethics
3.2
1.2User's score
Trust
1.5
Experience
1.2
Concern for Investors
1.1
Ethics
1.1
PROS
  • None
CONS
  • Shady leadership
  • MLM scam
  • Unreliable
Add your review  |  Read reviews and comments
17 Comments
Show all Most Helpful Highest Rating Lowest Rating Add your review
  1. 0.6
    Trust
    20
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    I have lost over $5000 because of this scam. They don’t pay you. The payouts are terrible. trust me. You will be better off working at McDonald’s. The people I made sign up are bothering me all the time because they are not getting paid properly either. Don’t sign up on Nesten.

    Helpful(0) Unhelpful(0)You have already voted this
  2. This is a very unserious company, I have noticed that moderators are trying to shield victims from the sought of assistance they truly
    need.
    Do you need help to; get money back from them?,just reach out for more info.

    www cryptiide com

  3. 0.6
    Trust
    20
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    Thank you whoever wrote this article. I had asked my father to invest in Nesten, then he asked to investigate who is the real owner of the company. After investigating a little bit we found that the owners are crooks. I am so glad I am not falling for this scam.

    Helpful(0) Unhelpful(0)You have already voted this
  4. 0.6
    Trust
    20
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    Most of the time the company’s claims are different. The last time my friend invested in a similar Ethereum seller was when the company claimed they are providing mining equipment that will help them to get the crypto coin Ethereum easily. He lost over $5000 because of that scam.

    Helpful(0) Unhelpful(0)You have already voted this
  5. 0.5
    Trust
    10
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    I will suggest you not invest in Nesten as the owner’s previous venture, Mining Max, was a real fraud as the company promised to provide the best mining machines but they lied the machines were not up to the mark. And also the company wasn’t able to fulfill the demand of the customers providing the machines. As they only provided 10% machines, I was one of them. The machines were working properly for the first 2 -3 months but started behaving strangely, as the build quality wasn’t good. It was a total fraud.

    + PROS: none
    - CONS: scammers lied to customers
    Helpful(0) Unhelpful(0)You have already voted this
  6. 0.6
    Trust
    10
    Experience
    20
    Concern for Investors
    10
    Ethics
    10

    After all, having an idea of mining max and the past of the company will make you resist the company’s new scheme named Nesten. The company claims that this is an MLM scheme but the truth is far more different, one of my friends is a survivor of Mining Max which is also a scheme of Nesten. But years back they used to sell mining equipment but the latest one is a different one.

    - CONS: scam
    Helpful(0) Unhelpful(0)You have already voted this
  7. Sorry for my poor English. I am not native english speaker. I was one of the victims of mining max. I can understand that the company is following the same pattern as the mining max but the difference is we used to get a mining machine for 2 years with Ethereum coin by investing in the Mining Max but in Nesten you will have to buy a Mining Machines, which somewhere shows the companies fraudulent view.

    • After a long investigation I found that the inventors of Mining Max and Nesten were the same but you will not find the names mentioned in the scheme of Nesten which proves that the company is trying to hide its shady past.

  8. 0.75
    Trust
    20
    Experience
    20
    Concern for Investors
    10
    Ethics
    10

    I still remember the craze of Mining machines for Ethereum. People were ordering machines like there is no world tomorrow. The company was not able to deliver machines to the users, they delivered a fraction of the total number of orders received. They were not able to fulfill the demands of the users. But they never returned their money. Total fraud.

    Helpful(1) Unhelpful(0)You have already voted this
    • As I also had invested in Mining Max the company promised to get high returns but nothing happened as the company claimed to the investors, which proved to be a ponzi scheme. My experience with the Mining Max wasn’t that great. I would suggest you not invest in Nesten, but after all, money is yours and time is yours.

  9. 0.6
    Trust
    20
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    When I got the Mining Machine I was facing problems. After a couple of weeks, I tried to contact the company for help but I found there was no about us page and no office address as well no contact number was provided, and I found the same with Nesten which made it a little spammy. Be aware of this scheme or go through the past of the company in detail.

    Helpful(0) Unhelpful(0)You have already voted this
    • Never trust such schemes due to the offer of high returns. It seems lucrative but you should never get into such a Ponzi scheme. I was really worried that people would be investing in Nesten even though there are so many knowledgeable articles present.

  10. 0.5
    Trust
    10
    Experience
    10
    Concern for Investors
    10
    Ethics
    10

    I will never recommend Nesten to anyone as an investment scheme. If you think you are sad and poor but got chills because of this investment scheme then be miles away from them. If you want to invest your money try to find some other platform instead of Nesten.

    They are such a cheater and fraudsters that are shy of putting the real name of the owner.

    My hard-earned money was lost due to Mining Max in the dream of making millions one day.

    Helpful(0) Unhelpful(0)You have already voted this
    • The real owners are missing from the description of the company which made Nesten suspicious. It is just a trick to fool people so that the investors shouldn’t get an idea of the shady past of the company.

  11. As far as I know, when Ethereum was launched the company had the idea that this would be one of the high-priced cryptocurrencies. They started developing mining machines that weren’t assembled properly, so after a few months, they stopped production. I don’t blame Andrew Baek for the scam. Maybe he didn’t know about their past.

  12. 0.75
    Trust
    10
    Experience
    10
    Concern for Investors
    20
    Ethics
    20

    Many of the users invested their savings and retirement money in the scheme, which proved to be a complete loss for most of them.

    My father told me that he too invested in mining max because of its increasing popularity and also the greed to earn a lot of money led him to a loss of $10,000. There were many more who invested millions to earn huge profits and got nothing but faced a heavy loss. I feel bad for those who are now investing in Nesten.

    Helpful(0) Unhelpful(0)You have already voted this
    • I wouldn’t blame the victims for falling for this scam. Due to the opportunities they provide in the schemes people forget about the loss they could bear while investing in the schemes.

Leave a reply

Your total score

Gripeo
Logo
Register New Account