The AI Rainbow platform, updated on November 25, 2024, advertises daily returns up to 48% on Tether (USDT) investments, yet provides no executive or ownership information on its website. The ht366.com domain, first registered in 2019, uses private registration, obscuring its true operators.

AI Rainbow offers no retailable products or services. Its affiliates can only market AI Rainbow memberships. Participants invest USDT into various VIP tiers, which promise escalating daily returns. A VIP1 tier, requiring 10 to 99 USDT, offers 20% daily. Investors in the VIP8 tier, committing between 60,000 and 200,000 USDT, are promised 48% daily returns.

An embedded multi-level marketing structure rewards recruitment. Direct referrals earn 12% commission on invested USDT. Secondary recruits yield 3%, and tertiary recruits pay 2%. The platform also offers bonuses for generating downline investment volume. Generating 5,000 USDT in downline investment volume earns 60 USDT. This bonus climbs to 30,000 USDT for 500,000 USDT in volume.

AI Rainbow promotes itself as an automated quantitative trading system. Users log into an app and "click a button." This action, they are told, generates revenue through complex quantitative trading algorithms, which the platform then shares with investors. The amount of "clicking" scales with investment size.

This "click a button" mechanism does not trigger any legitimate trading. It serves as a deceptive front. In reality, AI Rainbow operates as a Ponzi scheme, paying earlier investors with funds collected from newer participants. Such high daily returns from clicking a button are mathematically unsustainable without a constant influx of new money.

AI Rainbow fits a pattern of "click a button" app Ponzis that emerged in late 2021. Previous schemes, also using a quantitative trading narrative, include AQR Quantify, New World AI, and QubitsCube. All of these have collapsed. These operations typically last a few weeks to several months before disappearing.

Collapse often occurs without warning. Scammers disable websites and apps, leaving most investors with significant losses. Following a collapse, scammers frequently run "recovery scams." They demand fees to "restore" access to funds or re-enable withdrawals. Paying these fees results in further losses, as withdrawals remain disabled and the scammers cease communication.

Organized crime groups from China orchestrate these "click a button" Ponzis from various Southeast Asian countries. The US Department of Treasury sanctioned Cambodian politician Ly Yong Phat in September 2024. The Treasury cited his alleged ties to Chinese human trafficking scam factories operating from Cambodia. These groups reportedly use Phat's companies to shelter their illicit operations.