Bitfinite’s website domain, bitfinite.co, was registered privately on November 2nd, 2017. The company offers no details on its website about who owns or operates the business. ScamTelegraph advises extreme caution when considering any investment opportunity where the identity of the principals is concealed.
The company does not sell any retailable products or services. Affiliates can only market membership in Bitfinite itself. This lack of a tangible product or service is a common characteristic of fraudulent schemes.
Bitfinite affiliates buy pre-generated BFC points from the anonymous owners. These points cost between $0.75 and $1.15 each. Affiliates then “lend” these BFC points back to Bitfinite. The company promises a return on investment, or ROI, of up to 45% per month. The specific ROI and investment term depend on the amount invested.
Investments between $100 and $1,000 yield a daily variable ROI plus a 0.1% daily bonus for 240 days. For $1,010 to $5,000, the daily bonus increases to 0.25% for 180 days. Investments from $5,010 to $10,000 get a 0.35% daily bonus for 150 days. Those investing $10,010 to $50,000 receive a 0.40% daily bonus for 120 days. The highest tier, investments of $50,010 and above, get a 0.45% daily bonus for 90 days.
Commissions are paid through a unilevel compensation structure. This system places an affiliate at the top of their team. Everyone they directly recruit forms level 1. Recruits of level 1 affiliates form level 2, and so on, theoretically down an infinite number of levels. Bitfinite caps payable unilevel commissions at six levels.
Affiliates earn 3% on investments from their personally recruited members on level 1. Levels 2 through 4 yield 1% commissions. Levels 5 and 6 pay out 0.5% commissions.
Joining Bitfinite is free, but free members can only earn referral commissions. To participate fully and earn the promised ROIs, a minimum investment of $100 is required.
Bitfinite claims to generate its revenue through an "AI BOT trading software." However, the company provides no evidence that such a bot exists or that external revenue is used to pay affiliates. This structure indicates that new investments are the sole source of funds to pay existing investors their promised daily ROI. This reliance on new money to pay off earlier investors is the definition of a Ponzi scheme.
These types of schemes, often referred to as "lending ICO Ponzi schemes," typically involve anonymous administrators selling worthless digital points, such as Bitfinite’s BFC points, for actual currency. A portion of this incoming capital is used to pay the promised ROIs for as long as new affiliates are recruited. Once recruitment slows or stops, the funds available to pay returns dry up. The scheme collapses when a predetermined threshold is reached, often resulting in the administrators disappearing with the invested capital.