Coinye, a cryptocurrency launched in 2014, reappeared this year with a new business model attached: a multi-level marketing scheme. This comes years after the original project was abandoned following legal threats from rapper Kanye West.
Kanye West’s legal team sent a cease and desist letter on January 6, 2014, alleging trademark infringement. The original currency was named “Coinye West.” Developers initially rebranded to “Coinye” and altered marketing to reference a South Park episode featuring West. These changes proved insufficient. West’s team filed a lawsuit, leading the creators to sell their holdings and abandon the project.
Development on Coinye cryptocurrency ceased shortly after its launch. The coin itself, however, remained tradable. Now, a new venture operating through coinyecoins.com is attempting to attach an MLM opportunity to the defunct digital asset.
The Coinye Coins website uses marketing material from the original Coinye project. It lists Robin Clayton as CEO, using a photograph of the late actor Robin Williams. Clive Bruce, listed as COO, is depicted using an image of investment manager Bruce Berkowitz. It is highly probable that neither Robin Clayton nor Clive Bruce exist as presented.
The coinyecoins.com domain was registered on December 25, 2015. The registration lists "COINYEYE" of "COINYECOINS" as the owner and provides an incomplete address in Thailand. This contradicts the Coinye Coins website and compensation plan, which cite an address for "Coinye Digitial Inc." in Malta.
Further investigation shows the Malta address belongs to Fairwinds Management Limited, a company that offers services for company incorporation in Malta. The minimum share capital required for a Maltese company is €1,165, with at least 20% needing to be paid up. This suggests Coinye Coins may exist only as a registered name in Malta.
Confusion also arises from the Coinye Coins "User Agreement," which begins with "Welcome, and thanks for using coinye.co." The coinye.co domain, registered on November 21, 2015, appears to be the source for much of the information on the Coinye Coins website. Anil Shah of Alibag Webhosting is listed as the owner, with an address in Maharashtra, India.
Legitimate MLM companies are transparent about their ownership and leadership. Potential participants should exercise extreme caution when evaluating opportunities where this information is obscured or falsified.