Nepal’s top financial regulator has issued an illegality warning against Crowd1, HyperFund and Solmax Global.

The Nepal Rastra Bank identifies Crowd1, HyperFund and Solmax Global, as MLM companies utilizing cryptocurrency.

Network marketing (MLM) and cryptocurrency are both illegal in Nepal.

Crowd1 
is a
long-running MLM Ponzi scheme
whose latest offering sees affiliates
investing in a UK shell company
. Investment is also solicited through a
crypto NFT “game”
.

Following several regulatory warnings,
HyperFund

rebranded itself as Hyperverse
in late 2021. The Ponzi scheme is looking to
get into NFT fraud
but is plagued with
ongoing withdrawal problems
.

Solmax Global
was an
MLM crypto Ponzi scheme
launched in 2018. Solmax Global was primarily promoted across Pakistan, to the east of which lies Nepal.

Solmax Global
collapsed
in October 2021. A reboot was immediately announced.

The
Nepal Rastra Bank’s warning
was issued on January 23rd.

On January 26th the Himalayan Times
reported
Nepal’s Department of Revenue Investigation has taken action against four individuals.

The DRI filed a case against the suspects, three of which are family members, following an investigation into their promotion of Crowd1, HyperFund and Solmax Global.

The DRI managed to recover Rs. 370 million from the scammers ($3 million USD).

🤖 Quick Answer

What is the Nepal Rastra Bank's position on Crowd1, HyperFund, and Solmax Global?
Nepal's central financial regulator, the Nepal Rastra Bank, has issued formal illegality warnings against these three companies, classifying them as MLM schemes utilizing cryptocurrency, both prohibited activities under Nepalese law.

Why are MLM and cryptocurrency operations illegal in Nepal?
Nepal prohibits network marketing and cryptocurrency activities to protect citizens from fraudulent schemes and financial exploitation, recognizing these sectors' high association with Ponzi schemes and unsustainable investment models.

What operational model does Crowd1 employ?
Crowd1 operates as a long-running MLM Ponzi scheme directing affiliates to invest in UK shell companies while simultaneously soliciting investments through cryptocurrency-based NFT games, circumventing regulatory restrictions.

**How has HyperFund attempted to evade

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