Table of Contents
Introduction
The 18K Ronaldinho scam was a fake investment scheme that tried to get money from people in Brazil and all over the world. Even though the program promised high returns on investments in gold and other precious metals, it was a Ponzi scheme that used money from new investors to pay returns to people who had invested in the scheme before. Early in 2021, the fraud was found, and investors lost tens of millions of dollars because of it. In this article, we’ll talk about how the 18K Ronaldinho Ponzi scheme failed and how investors sued the scheme’s sponsors as a result.
The 18K Ronaldinho Ponzi Scheme
The scheme was called the 18K Ronaldinho Ponzi scheme after the famous Brazilian soccer player Ronaldinho, who was said to have helped spread the word about the scam. A company called 18k The scam was run by a company called 18K Ronaldinho, which was registered in Belize but had its main office in Brazil. The business said that it bought and sold gold and other precious metals, and it promised potential customers that they would get a lot of money back on their investments.
The plan worked because it brought in new investors and used the money from these new investors to pay returns to the old investors. A Ponzi scheme is easy to spot because it promised returns that were too good to be true. Every day, these returns were between 2% and 3%, which is a strong sign that the plan was a Ponzi scheme. In reality, there was no evidence that the company had a lot of gold or other precious metals, even though the plan made it seem like gold and other precious metals would back up investors’ deposits.
Plan of the Scam Artist Fails
Around the beginning of 2021, the Ponzi scheme called 18K Ronaldinho collapsed, causing investors to lose tens of millions of dollars. When a lot of people who took part in the scheme asked for their money back, it was the final straw that caused the program to fail. The program’s administrators were unable to meet the withdrawal requests, which shows that the scheme had used up all of its money.
The plan fell through
After the plan fell through, investors started asking for their money back, but the program’s organizers did not give in to their requests. The Brazilian government started to look into the plan, which led to the people who supported the plan being arrested. Ronaldinho has said that he had nothing to do with the scam, but it is not known if he knew that the program was a scam or not.
Investors Bringing Suits
As the truth about the 18K Ronaldinho Ponzi scheme came out, investors took legal action against the people who ran it. The claims said that the scam was a dishonest financial scheme that tricked people out of their money by pretending to be an investment opportunity. The lawsuits tried to get back the money that the investors had lost and hold the people behind the scheme accountable for what they had done.
Lawsuit filled in Brazil
Lawsuits were filed in Brazil and other countries where the plan was in effect, such as the United States. The investors said that to get them to join the plan, the people who were promoting it told them things that were both false and misleading. In the complaints, it was also said that the people behind the scheme used Ronaldinho’s name and reputation to get people to trust them.
How do things work in the courts?
People who planned and promoted the 18K Ronaldinho Ponzi scheme are still facing legal action. The Brazilian government has taken into custody several people who were involved in the plan, including the CEO of the company. The government has also taken possession of high-end cars and real estate that belonged to the people in charge of the plan.
The lawsuits that investors brought are also still being worked on. The investors are working on recouping the money that they have lost as well as holding the scheme’s promoters accountable for the activities that they took. The fact that the plan was carried out on a global scale and that many investors were involved makes it more likely that the legal process will take a long time and be hard.
Lessons Learned
The failure of the 18K Ronaldinho Ponzi scheme shows investors how careful they need to be when they think about putting their money into high-return schemes. Investors should have noticed that the scam promised unusually large profits, which was a warning sign that it was probably a scam. Investors should also be aware of investment schemes that use the names and reputations of well-known celebrities to try to gain their trust.
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