Coinaxium, an online platform, registered its website domain, coinaxium.com, privately on March 11, 2022, offering no public information about its ownership or executive team. The platform has seen a notable increase in web traffic since June 2022, with a significant portion originating from France (36%), the UK (21%), and Switzerland.
The operation provides no retailable products or services to consumers. Instead, its affiliates are solely tasked with marketing Coinaxium affiliate memberships, a common characteristic of pyramid schemes. Investors are funneled into a series of cryptocurrency Ponzi schemes, including CoinAxium's own in-house AXIUM token, which promises a 250% return on investment.
Coinaxium functions as a feeder for other illicit cryptocurrency investment opportunities. Other schemes promoted include LimoCoin, the collapsed SWAP Ponzi scheme, and GokuMarket, which also collapsed on July 5th after promising 250% ROI. Emile Simb Parfait, the operator of the SWAP scheme, remains a fugitive, illustrating the challenges in holding such perpetrators accountable. Seederverse, another scheme featured by Coinaxium, offers a 120% ROI. These investments are structured through "packages" ranging from $50 to $20,000.
Coinaxium's multi-level marketing component rewards the recruitment of new affiliate investors. The system features eleven affiliate ranks, from VIP0 to VIP10. Advancing through these ranks requires affiliates to invest increasing amounts into the featured Ponzi schemes, starting at $50 for VIP1 and going up to $20,000 for VIP10. Each investment qualifies an affiliate for 120 days, necessitating reinvestment to maintain rank qualification and continue earning commissions.
Referral commissions are paid as a percentage of funds invested by directly recruited affiliates. VIP0 members earn 2%, while VIP10 members earn 10% of their recruits' investments. Residual commissions are distributed through a unilevel compensation structure. This cascading commission model incentivizes affiliates to continually expand their downlines, pushing new capital into the system to pay earlier investors, a hallmark of Ponzi operations.
Financial regulators globally, including the Autorité des marchés financiers (AMF) in France and the Financial Conduct Authority (FCA) in the UK, frequently issue public warnings against schemes that promise high, guaranteed returns without transparent business operations or tangible products. The US Securities and Exchange Commission (SEC) has repeatedly highlighted the inherent risks of unregistered crypto offerings and investment contracts. Such platforms often collapse abruptly as new investor funds dry up, leaving later participants with substantial, often irrecoverable, losses.
Victims of schemes like Coinaxium often face complete loss of invested capital. Recovery efforts are frequently hampered by the offshore nature and anonymous ownership structures typical of many crypto Ponzis. Individuals who have invested in Coinaxium or similar platforms should gather all transaction records and report their experiences to their national financial regulatory body or local consumer protection agencies.