The Bank of Russia discovered signs of a financial pyramid in the activities of several companies operating under the single brand Cashbery. The project promised a high yield in the shortest possible time and accepted cryptocurrencies for payment.

First large crypto Ponzi scheme discovered in Russia

The Central Bank of Russia filed a report to the Prosecutor General's Office and the Ministry of Internal Affairs about the group of companies Cashbery, which allegedly worked as a Ponzi scheme.

"We see in their activities obvious signs of the classical financial pyramid. The companies of the Cashbery group use multilevel marketing in their activities, promise unbelievable profitability, conduct aggressive advertising in the media and social networks. Money is attracted both in rubles and in cryptocurrencies, but there are no signs of real economic activity, and they are not licensed as operators of financial services by the Bank of Russia," Head of the Department of Countering Unfair Practices Valery Lyakh said.

According to the Central Bank of Russia, Cashbery is allegedly one of the most large-scale Ponzi schemes, revealed in Russia in recent years. Its organizers managed to involve tens of thousands of people in the project.

"It has deployed its activities in many regions, almost all over the country. Moreover, recently it has been advertising itself more and more actively, trying to involve as many citizens as possible," Lyakh added.

Hope for high profitability is the last to die

Meanwhile, sales managers of Cashbery companies throughout Russia continue offering investment products to retail investors and convince potential customers that reports about the Central Bank's decision are untrue.

"Information in the media about the closure of Cashbery is a planned provocation. Such rumors have been going on since last year," a company manager in Yakutsk said.

Cashbery is a micro-loan and investing platform offering loans at 200% per annum and investment products in cryptocurrencies with profit margins at 550% per annum.