Scams roil China. But this pyramid scheme in particular has drawn much attention in the country https://t.co/5QCjmLSrIR ...

Investment Scam Overview - LSSC (Lightning Shared Scooter Company) based in Hong Kong, lured investors with promises of easy money from scooter rentals in Asia [1] - Initial investment pitch involved investing in a scooter and earning $3,000 to $4,000 per day [2] - Investors experienced initial growth in their accounts, but faced withdrawal issues, revealing the scam [2] - The Better Business Bureau has labeled LSSC a pyramid scheme, receiving scam reports from individuals across 20 states [3] Victims and Losses - Oliver Mason invested $65,000 into LSSC [1] - Mthod Kamara, along with five other friends recruited by Mason, invested $3,000 [3] - Selenus, California Police Department reported 62 victims with losses totaling just under $371,000 [4] Investigation and Accountability - Attempts to contact LSSC through various channels (phone numbers, email addresses, social media accounts) were unsuccessful [5] - Victims seek justice for their financial losses [5]

Business Model & Claims - IM Academy sells a dream of financial freedom through online trading education [1] - The company claims members can learn to trade online, make money, and become rich [10] - It emphasizes personal empowerment and escaping the "nine-to-five" corporate life [1] - The company uses social media influencers to showcase a luxurious lifestyle to attract new members [9] - The company's founder aimed to build a billion-dollar business with a million users [15] Recruitment & MLM Structure - IM Academy operates on a multi-level marketing (MLM) structure, rewarding members for recruiting new members [40][41] - Recruiting is heavily incentivized, with commissions and rank advancements tied to the number of recruits [40][44] - The company encourages aggressive recruitment tactics, urging members to prospect multiple people daily [39] - The company's income disclosure revealed that 94% of members earned less than they paid for their subscription in a year [49] - A small percentage (005%) at the top earned an average of $14 million per year [50] Trading & Education - IM Academy offers online trading lessons, initially focused on foreign exchange (Forex) markets [8] - Members receive "signals" or predictions on price movements, but these are risky and can lead to losses [31][34] - The company claims to teach members to trade various assets, including shares and cryptocurrencies [30][31] - Critics argue that most members make money through recruiting rather than trading [43] - The company is not regulated to provide financial advice, and the founder has never registered as a broker [36][37] Ethical & Legal Concerns - The company faces accusations of fraud, misleading advertising, and running a pyramidal scheme [2][69] - The company's founder has a criminal record and some promoters lack formal financial education [37] - The company has been investigated by the FTC for deceptive or unfair actions [52] - The company has faced numerous complaints, with people reporting significant financial losses and feelings of being brainwashed [57][58][59] - The company isolates members from their families and friends, encouraging them to associate only with other members [55][56]