Ronald Aai: How He Established this Fake Scheme? The Truth Exposed (Update 2024)
Cloud Token was founded in Singapore by leading developer Ronald Aai and project manager Daniel Csokas, who were connected to the founders of the other MLM crypto scheme. PlusToken was exposed as a Ponzi scheme. According to police, the crypto fraud robbed $4 billion from investors.
Cloud Token was launched in the cryptocurrency world in 2018. Similar to the Ponzi scheme, Plustoken, CTO, billed itself as the first online wallet capable of integrating all of today’s popular crypto assets.
The developers said the wallet held USDT, TUSD, BCH, CTO, BTC, LTC, ETH, and DOGE. CTO, like Plustoken, promised 6-12% interest every month.
In June, a report stated that the Cloud Token project was experiencing issues in Singapore, prompting the founder Ronal Aai of the MLM crypto scheme to relocate.
Ronald Aai In Cload token Securities Fraud
MLM Ponzi schemes make up various excuses for not registering their securities offering.
Cloud Token Wallet Founder Ronald Aai is one of the most clearly fraudulent causes of securities fraud. Cloud Token affiliates invest in CTO points for those unfamiliar with the company.
CTO points are not publicly traded and have no monetary worth outside of Cloud Token. Cloud Token gradually raises the internal value of CTO points, allowing affiliates to cash out.
When an affiliate wants a withdrawal, Cloud Token pays them at the current CTO rate using already invested funds. Despite being listed as Cloud Token’s CTO, Ronald Aai controls the organization.
What Does Ronald Aai Say About Cloud Token Investment?
Aai interacts with Cloud Token investors mostly over Facebook. Aai stated Cloud Token’s investment structure in an article published yesterday:
It is not an ICO/STO but rather a reward issued in digital form, allowing owners of the reward token to exchange it for mainstream cryptocurrencies.
The project does all of the tradings, and the rewards are distributed among the project’s participants.
Let’s Break down Securities Law Step By Step:
To begin with, Cloud Token has registered with the Australian Securities and Investment Commission;
- That is a low bar (pay a fee, provide specific information);
- it only applies to investment solicitation in Australia.
Australia is a minor source of traffic for Cloud Token’s website. That is, there is little to no investment activity. According to Alexa, the United States is the most crucial traffic source for Cloud Token’s website (20%).
The existence of an investment contract must be established to determine whether Cloud Token’s income possibility is security.
This is done with MLM companies using the Howey Test. According to the Howey Test, an investment contract is characterized as:
A contract, transaction, or scheme in which a person invests money in a joint venture and is encouraged to expect rewards primarily on the efforts of the promoter or a third party.
The Howey Test has been in use since 1946. The SEC has used it in numerous cases to show the existence of an investment contract.
Ronald Aai;
The project is doing all the trading and passing the rewards to the participating members.
Faith Sloan;
We’re putting our crypto in the JARVIS wallet, we are not investors, but the company is investing.
And here’s Cloud Token themselves;
Cloud Token Wallet offers its users the option of deploying algorithms and AI systems to trade cryptos and earn a passive income.
JARVIS arbitrage bot delivers attractive monthly returns of 6%-12%, paid daily to Cloud Token Wallet users.
(HAL) delivers attractive monthly returns of 18%-30%, paid daily to Cloud Token Wallet users.
For better Understanding:
A contract, transaction, or system in which a person puts money in a joint venture and expects benefits only from the promoter’s or a third party’s efforts. (Cloud Token indicates that it engages in AI trading, and the profits are used to compensate affiliates who cash out their Cloud Token points.)
Cloud Token acts as an investment contract for affiliates. As a result, it is a security offering. To function lawfully, Cloud Token must register with financial regulators in each jurisdiction where it seeks investment.
Faith Sloan lives in the United States, and as indicated by website traffic, the United States is currently Cloud Token’s most significant source of investment.
Ronald Aai recently fled to Malaysia after he was booted out of Singapore.
Ronald Aai’s Cloud Token Doesn’t Provide Any Information
Aside from securities fraud through an unregistered securities offering, Cloud Token fails to provide investors with information on its supposed Jarvis and Hal AI trading bots.
Even if Cloud Token were registered with the SEC and the Bank of Malaysia, they would have to fully disclose their Jarvis and Hal trading bots to investors.
This contains information such as who designed the bot, their competence, who owns it, and verified trading results.
A third party must audit the findings so that returns given to Cloud Token affiliates can be connected with trading revenue earned by the Jarvis and Hal bots.
Cloud Token’s website does not provide any of this information. Nothing has been filed with ASIC either.
Is Cloud Token A Scam?
Yes, it is! Apart from committing securities fraud in the United States, it is also not registered in Malaysia and Singapore.
There is much work to be done upfront, no assurance of success, and, most importantly, minimal commissions.
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.
There’s nothing wrong with doing the task first and earning money later. But if you work for three months and your reward is a $50 commission, it’s not worth it.
About Ronald Aai & Cloud Token Wallet
Ronald is the founder and owner of Cloud Token Wallet. He developed multiple web firms in his early career. He was born in Malaysia in 1977 and is of Chinese descent. He was the Director of Technology for a mobile phone company in Shenzhen, China, in 2003.
Maxitech, a firm that manufactures cell phones and software, was founded by him in 2004. Ronald Aai and his team founded a mobile technology startup, Blockchain 4.0, in Singapore in 2017.
About Cloud Token Wallet
Cloud Token Wallet claims to offer cryptocurrency wallet services. Users can store, send, and receive digital assets using encrypted networks.
It uses AI-powered technologies to facilitate the exchange of many crypto assets, including Dash, bitcoin, ripple, and Ethereum. The app is available for iOS and Android devices.
Conclusion
Cloud Token created controversy in 2019 when it stopped repaying its investors, and the platform’s only representative, Ronald Aai, vanished. At the same time, the brand appears to be a scam.
The only thing remains for the SEC, DOJ, or Bank of Malaysia to collect it and act. Alternatively, after recruitment is exhausted, Cloud Token collapses, and Ronald Aai, Faith Sloan, and their co-conspirators make off like bandits.
Everyone else suffers, and reporters will add another “sorry for your collective losses” entry to the MLM crypto sector.
I see nothing new here.
Also, I beliieve you should do a little more digging before doing such a hit piece. Ronald went bankrupt running to all these different counties trying to save Cloud. At some point he asked himself why. Unlike plus token, He was never arrested. Ask yourself why. Plus token is what caused the down fall of Cloud. Plus Token caused fear which caused people to want their money back. Faith Sloan has always been and always will be an MLM huckest, always promoting the next scam.