AI-Coinbase, a scheme appropriating the name and branding of the legitimate American cryptocurrency exchange Coinbase, received a pyramid fraud warning from Russia's Central Bank on October 7, 2024. The fraudulent operation surfaced through two recently registered website domains: ai-coinbase.cc and ai-coinbase.com. Both were established in late September 2024, specifically on the 30th and 29th, respectively, using fictitious registration details through the Chinese registrar Alibaba (Singapore). The authentic Coinbase platform has no connection to this scam.

The operators of AI-Coinbase provide no verifiable ownership or executive information. This anonymity is common among such schemes, designed to obscure the identities of those running the illicit operations. The lack of transparency makes it nearly impossible for victims to pursue legal recourse or recover lost funds once a scam collapses.

AI-Coinbase claimed to generate profits through "quantitative trading." Affiliates were instructed to log into an application and click a button, with more clicks required for larger investments. This action supposedly triggered trading revenue, which the company then shared with its investors. In reality, no such trading occurred. The "button click" within the application served no functional purpose other than to create an illusion of engagement and automated returns for participants.

The scheme operated on standard Ponzi mechanics. Early investors received payouts sourced directly from funds contributed by newer participants. This model is inherently unsustainable, requiring a constant influx of fresh capital to maintain the illusion of profitability. Once recruitment slows, the system inevitably collapses.

AI-Coinbase offered a complex compensation structure, featuring ten regular tiers and five VIP packages. These plans promised daily returns ranging from 23% to 45%. The C-tier plans, requiring a minimum investment of 12 USDT and scaling up to over 200,000 USDT, offered these daily returns for 365 days. VIP packages, priced between 100 USDT and 5,000 USDT, promised daily returns of 25% to 45% over periods from 10 to 360 days. Such high, consistent returns are a hallmark of Ponzi schemes, designed to entice investors with promises that no legitimate investment can deliver.

While affiliate membership was technically free, active participation demanded an initial investment of at least 12 USDT. The scheme incorporated a multi-level marketing (MLM) component to incentivize recruitment. Direct recruits on Level 1 yielded a 10% commission. Level 2 recruits brought in 3%, and Level 3 recruits generated a 1% commission.

Beyond the direct recruitment commissions, AI-Coinbase offered rolling 24-hour downline investment bonuses. For instance, generating 500 USDT in downline volume qualified an affiliate for an 18 USDT bonus. This bonus structure scaled significantly, offering up to 8,888 USDT for generating 50,000 USDT in downline volume. These bonuses existed solely to drive continuous recruitment, which is essential for a Ponzi scheme's survival.

Since 2021, similar "click a button" app Ponzis have become prevalent. Many of these scams originate from Chinese organized crime groups operating scam factories across Southeast Asia. These operations frequently misappropriate the names of well-known companies or financial services to lend an air of legitimacy. Past examples of schemes using the same playbook include Hyundai N, RT USDT, and Samsung Link, all of which stole corporate identities. Other clones, like SDT Quant, A8 Quantization, and Pitrex, used the "quantitative trading" ruse.

The US Treasury Department took action in September 2024, sanctioning Cambodian politician Ly Yong Phat. Phat was accused of sheltering Chinese human trafficking scam operations through companies he owns. Authorities believe the same organized criminal networks are responsible for the ongoing surge of button-clicking Ponzi schemes.

The lifecycle of these scams is typically short, lasting weeks to a few months before operators abruptly disable websites and applications. By October 19, 2024, the ai-coinbase.cc domain was abandoned, signaling a partial collapse of the AI-Coinbase scheme.