TrageTech Review: CEO Boris and the ‘Arbtech’ Trading Bot Ponzi Scheme

TrageTech fails to provide ownership or executive information on its website. TrageTech’s website domain (“tragetech.com”), was privately registered on January 15th, 2024. In an attempt to appear legitimate, TrageTech claims it is registered with the SEC: “TrageTech” isn’t registered with the SEC but “Trage Technologies Ltd” was registered in February 2024. Trage Technologies LTD is [Continue reading…] Source: TrageTech Review: “Arbtech” trading bot Boris CEO Ponzi

Originally Syndicated on May 22, 2024 @ 7:00 am

TrageTech does not disclose any ownership or executive details on its website.

The domain name for TrageTech (“tragetech.com”) was privately registered on January 15th, 2024.

To project an image of legitimacy, TrageTech asserts that it is registered with the SEC:

TrageTech” isn’t registered with the SEC but “Trage Technologies Ltd” was registered in February 2024.

Trage Technologies LTD is a Marshall Islands shell company with one Director; “Graeme Gary Hearn” of “Trust Company Complex”.

Trust Company Complex appears to be a “shell company in a box” type service operated by persons unknown.

The entity appears routinely connected to dodgy shell companies. At least one Trust Company Complex shell company is listed on the Office of Foreign Assets Control’s sanctions list.

Given Marshall Islands is a tax haven with non-existent regulation of MLM related fraud, Trust Company Complex’s Graeme Gary Hearn likely doesn’t exist.

Supporting this is TrageTech naming “Michael Hearn” as CEO in their marketing materials:

This name is not a coincidence. Michael Hearn, aka Mike Hearn, is a quite prominent figure- a former Google and bitcoin developer.

TrageTech’s Michael Hearn is enacted by a UK national Daniel Poole:

Poole is from Thailand and is the Entertainment & Activities Consultant at X2 Logistics Networks.

Please note that Poole represents himself on social media with a profile photo that seems almost a decade old.

Having determined that TrageTech’s CEO is non-existent, it logically follows that, aside from establishing a shell company for SEC registration, TrageTech lacks any real physical presence in the Marshall Islands. Thus far, TrageTech has submitted two filings with the SEC, which we will discuss in the conclusion of this review (spoiler alert: they hold little significance).

The use of a “Boris CEO”—a front executive hired to pose as leadership—often originates from Russian scam operations. While this isn’t conclusive, it may correlate with the increasing Russian demographic in Thailand.

As a rule of thumb, if an MLM company is not transparent about its leadership or ownership, consider it a strong warning and carefully evaluate the decision to join or invest any money.

TrageTech’s Products

TrageTech has no retailable products or services but the affiliates are only able to market TrageTech affiliate membership.

TrageTech’s Compensation Plan

TrageTech affiliates invest tether (USDT). This is done on the promise of passive returns:

  • P10 – invest 100 USDT and receive 4% a month
  • P20 – invest 200 USDT and receive 8% a month
  • T5 – invest 500 USDT and receive 12% a month
  • T10 – invest 1000 USDT and receive 20% a month
  • T50 – invest 5000 USDT and receive 28% a month
  • T100 – invest 10,000 USDT and receive 36% a month

The MLM side of TrageTech pays on recruitment of affiliate investors.

TrageTech Affiliate Ranks

There are 6 affiliate ranks within TrageTech’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. Executive – invest 500 USDT and generate 1000 USDT in personally recruited affiliate investment volume
  2. Junior Manager – invest 1000 USDT, have three Executive or higher ranked affiliates in your downline and generate 3000 USDT in personally recruited affiliate investment volume
  3. Senior Manager – invest 5000 USDT, have three Junior Manager or higher ranked affiliates in your downline and generate 6000 USDT in personally recruited affiliate investment volume
  4. Director – invest 10,000 USDT, have three Senior Manager or higher ranked affiliates in your downline and generate 30,000 USDT in personally recruited affiliate investment volume
  5. Divisional Director – invest 25,000 USDT, have three Director or higher ranked affiliates in your downline and generate 60,000 USDT in personally recruited affiliate investment volume
  6. Regional Director – invst 50,000 USDT, have three Divisional Director or higher ranked affiliates in your downline and generate 150,000 USDT in personally recruited affiliate investment volume

ROI Match

TrageTech pays a ROI Match via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

TrageTech caps payable unilevel team levels at ten.

The ROI Match is paid as a percentage of returns paid out across these ten levels based on how much a TrageTech affiliate has invested:

  • P10 tier affiliates earn a 12% ROI Match on level 1 (personally recruited affiliates)
  • P20 tier affiliates earn a 12% ROI Match on level 1 and 8% on level 2
  • T5 tier affiliates earn a 12% ROI Match on level 1, 8% on level 2, 5% on level 3 and 2% on level 4
  • T10 tier affiliates earn a 12% ROI Match on level 1, 8% on level 2, 5% on level 3 and 2% on levels 4 to 6
  • T50 tier affiliates earn a 12% ROI Match on level 1, 8% on level 2, 5% on level 3, 2% on levels 4 to 6 and 1% on levels 7 and 8
  • T100 tier affiliates earn a 12% ROI Match on level 1, 8% on level 2, 5% on level 3, 2% on levels 4 to 6 and 1% on levels 7 to 10

Rank ROI Match

TrageTech pays an additional rank-based ROI Match on 10% of total downline investment volume.

  • Executives receive a 1% Rank ROI Match
  • Junior Managers receive a 2.5% Rank ROI Match
  • Senior Managers receive a 5% Rank ROI Match
  • Directors receive a 10% Rank ROI Match
  • Divisional Directors receive a 15% Rank ROI Match
  • Regional Directors receive a 20% Rank ROI Match

Joining TrageTech

TrageTech affiliate membership is 29.90 USDT annually but full participation in the attached income opportunity requires an additional minimum 100 USDT investment.

Conclusion

As mentioned in the introduction of this review, TrageTech is registered with the SEC under the name Trage Technologies LTD. To legally solicit investments from consumers in the United States and other regions, TrageTech must register its passive returns investment scheme with the SEC as a securities offering. Accordingly, Trage Technologies is also obligated to submit regular audited financial reports.

So far, Trage Technologies LTD has submitted two filings with the SEC:

  • ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0″ value=”1″>A Form D Notice of Exempt Offering of Securities on February 22, 2024
  • ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0″ value=”2″>A Form D Amendment on June 4, 2024

The February 2024 Form D filing from TrageTech cites a filing exemption under Rule 506(c) for its proposed equity-based securities offering. It is important to note that this is separate from TrageTech’s “Arbtech” trading bot passive returns, which are offered through its multi-level marketing (MLM) opportunity.

Moreover, a Rule 506(c) exemption would exclusively allow TrageTech to extend their securities offering to “accredited investors.”

TrageTech is appealing for investments from anyone naive enough to send them cryptocurrency to be defrauded. TrageTech’s amendment filing from June 2024 confirms that the company does not anticipate its securities offering to “continue for more than a year.”

It also reiterates that no offerings have been presented to unaccredited investors. Given the frequency with which MLM crypto Ponzi schemes have been failing lately, the first statement is hardly surprising.

TrageTech’s second amendment claim is undeniably false.

In summary, TrageTech is registered with the SEC via a questionable Marshall Islands shell company established with fraudulent information. The two SEC filings made by

TrageTech hold no relevance to its “Arbtech” trading bot investment scheme, thereby making them insignificant.

If it wasn’t already clear, the sole rationale for the scammers behind TrageTech to establish the Marshall Islands shell company and register with the SEC was for marketing advantages.

As of June 2024, SimilarWeb ranked the US as the second largest source of TrageTech website traffic. The US comes in at 40%, following Spain at 56%.

TrageTech activity in Vietnam, spearheaded by OneCoin Ponzi promoter Simon Le, plummeted 96% month by month.

There are indications that someone is attempting to launch TrageTech in Portugal, albeit with a minimal market share of 2%.

The fact that TrageTech has not revealed its “Arbtech” securities offering to the SEC strongly suggests that there is no legitimate trading income available to cover withdrawals for investors.

TrageTech resembles a typical trading bot MLM crypto Ponzi scheme, enhanced by features like a CEO named Boris and claims of SEC registration.

Like all MLM Ponzi structures, the scheme relies heavily on affiliate recruitment; once this flow ceases, so will new investments. This depletion of new capital will hinder TrageTech’s ability to generate ROI, ultimately leading to its downfall.

The logic of Ponzi schemes assures that when they fail, most participants will incur financial losses.

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