Several years ago there was a lot of buzz in the media about a dangerous Ponzi scheme called CashFX. It had vanished into thin air with millions of dollars it
One of the people who were involved in that scam was Raymond Khan.
In 2021, ASIC released a long warning about the CashFX scam. Raymond Khan was among the biggest promoters of that scam.
This begs the question: “Was he arrested?”
No. He didn’t face any legal proceedings for his involvement in the major scam at all.
One of my friends had invested in this God-forsaken scheme. He lost it all because of it.
Some people raised the issue on social media, and the primary promoter of Cash Fx went to hide somewhere as well. However, all in all, most of the people who profited from the scam were left unscathed. They didn’t face any legal consequences for their criminal activities.
What was the Cash FX Scam?
The Cash FX Group scam refers to allegations and findings related to the operations of Cash FX Group, which was promoted as a Forex trading platform offering high returns on investment through currency trading. Here’s a general overview of the situation surrounding Cash FX Group and why it has been labeled a scam by authorities and critics:
- Promised Returns: Cash FX Group attracted investors with the promise of high returns through Forex trading, using a multi-level marketing (MLM) structure. Investors were told they could earn significant profits not only from trading but also from recruiting new members to the platform.
- Regulatory Warnings: Various financial regulatory bodies around the world issued warnings against Cash FX Group, stating that it was not authorized to offer investment services in their jurisdictions. These warnings often cited the lack of transparency, unlicensed operation, and unrealistic promises of returns as red flags.
- Lack of Transparency: Critics and investigators pointed out that Cash FX Group was extremely opaque about its trading activities, profits, and the structure of its operations. There was little to no verifiable evidence that actual Forex trading was taking place or generating the returns promised to investors.
- Ponzi Scheme Characteristics: The operation bore hallmarks of a Ponzi scheme, where returns to earlier investors were paid out from the contributions of new investors, rather than legitimate profits from Forex trading. As with most Ponzi schemes, it was likely to collapse once the flow of new investors slowed down, leaving later investors at risk of losing their money.
- Closure and Legal Action: In various cases, platforms like Cash FX Group have faced shutdowns by authorities, and principals have faced legal actions, including fines and imprisonment. The specifics can vary widely depending on the jurisdiction and the extent of the fraud.
- Victim Reports: Many individuals who invested in Cash FX Group reported difficulties in withdrawing their funds, receiving significantly less than their promised returns, or losing their investments entirely. These personal accounts contributed to the scam allegations.
- Global Impact: The Cash FX Group attracted attention and investors from multiple countries, making it a subject of international concern. Its global reach complicated regulatory and legal efforts, as different countries have different laws regarding Forex trading and MLM schemes.
If you’re considering an investment, especially in platforms promising high returns through trading or recruitment, it’s crucial to perform due diligence, seek advice from financial advisors, and heed warnings from regulatory authorities. Scams like these can be sophisticated and convincing, making it essential to approach such opportunities with caution.
What do you think would happen when a Ponzi scheme promoter is left to his own devices?
You probably guessed it, Raymond Khan began promoting another dangerous MLM scam.
This time, he used the name D.A.I.S.Y AI.
What was the DAISY Scam Raymond Khan Promoted?
Here’s a summary of what I found about the DAISY scam Raymond Khan was promoting online:
The DAISY AI scam refers to a situation involving a platform called “DAISY AI,” which was promoted as a decentralized AI system purportedly backed by a legitimate company named EndoTech, an Israel-based AI trading platform. The scheme was primarily marketed as an investment opportunity where participants could contribute funds to support the development of advanced AI trading systems, with promises of high returns from these trading algorithms.
Here are some key points about the DAISY AI scam:
- Decentralized AI System (DAISY): DAISY was presented as a “Decentralized AI System” that participants could fund through contributions made in cryptocurrency. The investors were promised a share in the profits generated by the AI’s trading activities.
- EndoTech Involvement: The project was allegedly associated with EndoTech, which was said to be developing the AI technology. This association was used to lend credibility to the project, although the legitimacy of these claims became highly questionable as events unfolded.
- High Returns Promised: Investors were promised extremely high returns and a share in the revenue from the trading algorithms developed by the AI. The scheme used typical high-yield investment program language that is common in many financial scams.
- Recruitment of New Investors: The structure of DAISY AI resembled a multi-level marketing (MLM) or pyramid scheme, where existing investors were encouraged to recruit new participants. The more money new investors poured into the system, the higher the supposed returns.
- Regulatory Warnings and Legal Issues: Various financial regulatory bodies issued warnings about DAISY AI, noting that it had characteristics of a Ponzi scheme and was not registered with any financial authorities to offer investments. These warnings often come after numerous investors have already lost money.
- Closure and Losses: As with many such schemes, there were reports of the platform shutting down or becoming inactive without returning the funds to the investors, leading to significant losses without any real accountability from the organizers.
- Legal and Financial Risks: Many investors found themselves entangled in legal and financial complications, struggling to recover any of their invested money.
This situation is a classic example of why it is important to conduct thorough due diligence before investing in any project, especially those involving high returns with unclear business models and operations that rely heavily on the recruitment of new investors rather than legitimate product or service revenues.
There have been numerous reviews against the scams purported by Raymond Khan. I’m sharing some of them below to help you understand the gravity of the situation.
Reviews Exposing the Companies Raymond Khan Promoted
As I mentioned earlier, the latest scam Raymond was promoting is DAISY AI/DAISY Global. Here are some Trustpilot reviews on those companies. They will help you recognize the kind of impact these companies have had on the lives of ordinary people:
Susanna highlights that after a year of investing with Daisy, she is no longer able to access her original investment. Furthermore, there aren’t any profits for her to withdraw.
Apparently, the company performed well for the first few months and then kept crashing. Another complaint she had was that the customer support wasn’t supportive at all. They didn’t respond to any of her messages.
The similar complaint is more serious.
Aston highlights DAISY has been blacklisted by the financial regulator of Belgium. Keep in mind that the review was posted in 2022 and according to my sources, Raymond Khan kept promoting the scam even after the warning.
Aston points out that DAISY Global is engaging in securities fraud and aren’t allowed to offer financial services everywhere. Furthermore, he highlights that the company makes unrealistic promises and makes it seem as if it’s a legitimate investment opportunity.
We all know that they aren’t legit.
Here’s another review. The reviewer alleges that the company lacked honor and humanity.
Also, they claim that the user was never informed by representatives about the allocation of their money. They were only given promises to release their funds by providing them with a bitcoin wallet. The user was never informed that the funds were being collected into a BTC account for the purpose of being used in their own investments through cryptocurrency. In order to access their hard earned funds, they had to open a btc wallet on the platform and deposit a minimal amount of 1.5k USD, allowing them to withdraw their initial deposits. When addressed to the CEO, he insisted that a deposit of 500 USD be made and he would graciously match it with 500.00 USD. This was deemed unacceptable as a total of 5,000 USD had already been deposited.
The user mentioned that there was a persistent demand for them to become a member and pay additional fees to retrieve their money. They found it rude and inhumane that the company lacked transparency. The user wrote and insisted that they were not at all interested in becoming a member and demanded that their money be returned immediately.
What’s Next for Raymond Khan?
It’s important for the victims of DAISY AI, Endotech and Cash FX to come together and raise their voices against Raymond Khan and other MLM promoters.
These promoters are the main reason why such Ponzi schemes find new victims. MLM scams come and go but these promoters stay relevant.
As long as promoters like Raymond Khan are allowed to promote MLM scams, these problems will keep getting bigger. I have even noticed DAISY AI using multiple websites to market itself.
When one of its websites received multiple warnings from regulatory authorities like the ASIC, they rebranded themselves to a whole new website.
It’s important to call out Raymond Khan. If you’re a victim of a Ponzi scheme, I suggest you do one of the following things:
- Share this article with others: More people need to know about the actual scammers behind these Ponzi schemes.
- Call out Raymond on social media: If enough people raised awareness against MLM scams, these people would have nowhere left to.
- Report them to relevant authorities.
I request you to share this article in your social circles. Too many people have suffered because of these scammers. It’s time we put a stop to them.
The story about CashFX and the DAISY AI scam is a stark reminder of the importance of due diligence when investing in such schemes. It’s concerning to see how people can be swayed by the promise of high returns.
It’s always unsettling to read about individuals like Raymond Khan who are associated with multiple fraudulent schemes. The regulatory bodies ought to have more stringent measures in place to prevent such promotions.
These scams highlight the perennial issue of transparency in the investment world. The fact that promoters like Khan continue to operate with impunity raises questions about enforcement and legal consequences.
Very informative article. It stands as a sobering tale for potential investors to be wary of where they place their money, especially in ventures promising extraordinary profits.
While reading this, it’s clear that the individuals who suffered losses are the ones who need support. Legal loopholes that allow scammers to walk away should be closed to protect the public.