Table of Contents
Introduction
As part of its business operations, Lion Group Corporation is said to be involved in e-commerce, foreign exchange trading, cryptocurrency, and real estate development, among other things. In 1992, a successful Malaysian businessman named Tan Sri William Cheng started the company. Since then, the company’s operations have grown in Asia, Europe, and the United States.
On the other hand, there are claims that the company is running a Ponzi scheme, which is a type of illegal investment that pays returns to old investors with money from new investors instead of making money through legal business activity. Lion Group Company ran a Ponzi scheme called “365-day ROI.” This was one of the schemes. This program promised investors a return of up to 20% per month on their money. This post will look at the Lion Group Company’s 365-day ROI program and discuss whether it is a real investment opportunity or a scam.
Background?
In 2018, Lion Group Corporation started advertising its 365-day ROI program to investors as a high-yield investment opportunity that could give them a 20% return on their money every month. Lion Group Corporation tried to get investors interested in this idea. The program required investors to put up a minimum of $1,000 and a maximum of $10,000, and they had to keep their money in the scheme for a full year.
The organization said that the investment returns came from trading forex and cryptocurrencies, and investors were guaranteed a certain percentage of their investment each month for a year. Also, the company gave bonuses and commissions to investors who brought in new members. This made people wonder if the program was real and if it would be able to keep going in the future.
Signs of trouble?
The 365-day ROI program of Lion Group had a lot of red flags that showed it was a Ponzi scheme and not a real way to make money. The program of Lion Group had been around for a long time, as shown by these warning signs. First of all, the returns that were promised, which could be as high as 20% per month, were too high and weren’t backed up by any proof that the firm had done anything to make money.
Second, the way the program was set up was similar to a Ponzi scheme in that it put a lot of emphasis on getting new members and rewarding those who did so with bonuses and commissions. Lastly, the company didn’t have any permission or oversight from the government. This meant that the investors’ money wasn’t protected by any laws. This was a problem because the company didn’t have permission from the government. In the end, the organization’s leaders didn’t say anything about their names, credentials, or business experience. This made people question whether or not they were real and honest.
What do investors have to say?
The 365-day ROI program’s promise of big returns attracted a lot of investors from Malaysia and other Asian countries. As a result, a lot of people joined the program. Still, after the 365-day lock-in period was over, many investors who had already put money into the program were unhappy that they had not gotten the returns that had been promised to them. Several investors also said they couldn’t get their money back and that the company’s customer service wasn’t paying attention to their questions. The investors also expressed concerns about the program’s legitimacy and the way the company was run. This led the Malaysian government to open an investigation into the situation.
What did the regulators do?
At the start of 2019, the Malaysian Securities Commission (SC) started an investigation into the Lion Group Company’s 365-day ROI program. The Supreme Court decided that the program in question was an unregistered investment scheme that was against the law in Malaysia. The Supreme Court also decided that the program in question was a Ponzi scheme.
In a Ponzi scheme, money from new investors is used to pay for profits made on investments made by earlier investors. As a result of the investigation, the firm’s assets were temporarily frozen, and many people who were involved in the plan were arrested. The Supreme Court also sent a warning to the general public, telling them not to take part in the program and to look for high-yield investment opportunities, but to be very careful before doing so.
What We Have Gone Without?
The Lion Group Corporation’s 365-day ROI program is a cautionary tale that shows how dangerous it is to invest in high-yield opportunities that promise returns that are impossible to get. The way the program was set up, the lack of transparency, and the focus on getting new members should have been warning signs for the potential investors.
