The Central Bank of Cuba, the country’s top financial regulator, has issued a warning targeting several MLM Ponzi schemes.

Scams cited in the Central Bank’s May 13th warning include;

Mind Capital
– Spanish Ponzi scheme on its
last legs
;

Mirror Trading International
–
collapsed
South African Ponzi scheme;

Arbistar
–
collapsed
Spanish Ponzi scheme, owner
arrested
last year;

Trust Investing
– Spanish Ponzi scheme,
Cuban Director recently arrested
; and

QubitLife
(formerly
QubitTech
) – Russian Ponzi scheme run by Greg Limon, securities fraud warnings issued in multiple jurisdictions.

The operations carried out by these schemes have little or no transparency and are hidden behind an apparently technical phraseology, but devoid of content.

All this, without there being a real economic value or good to back it up.

This operation is similar to what is known as Multilevel or Pyramid Scams, also called Ponzi Schemes.

The Cuban State does not promote or approve the operation of this type of “companies”.

None of them has a license to operate within the national territory.

Cuba evidently has emerged as a market to pitch MLM Ponzi schemes to over the past year or so.

Most of them seem to be imported from Spain, likely by the same group of scammers.

Based on current Alexa traffic analysis, Cuba is

the primary source of traffic to Trust Investing’s website (44%); and

the second largest source of traffic to QubitLife’s website (14%)

Arresting the Director of Trust Investing as he attempted to flee the country is a start.

Whether Cuban authorities can get the spread of Ponzi schemes under control remains to be seen.

🤖 Quick Answer

What MLM Ponzi schemes did Cuba's Central Bank warn against in May?
The Central Bank of Cuba issued a warning against five major MLM Ponzi schemes: Mind Capital (Spanish), Mirror Trading International (South African), Arbistar (Spanish), Trust Investing (Spanish), and QubitLife (Russian). These operations used technical terminology to obscure fraudulent activities and lacked transparency in their business operations.

Why are MLM Ponzi schemes considered dangerous by financial regulators?
MLM Ponzi schemes pose significant risks because they lack operational transparency, use complex technical language to disguise fraudulent activities, and prioritize recruitment over legitimate product sales. Regulators warn against them because they inevitably collapse, causing substantial financial losses to participants and undermining confidence in financial markets.

What were the consequences for operators of these Ponzi schemes?
Several scheme operators faced serious legal consequences. Arbistar's

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