Following the
collapse
of its short-lived
IN8 NFT Ponzi scheme
, iX Global has
tripled down
on securities fraud with CloudX.

In a nutshell, iX Global’s CloudX is a variation of the “node positions” model, except blockchain has been swapped out for web hosting.

The ruse this time around is CloudX hosting services:

iX Global affiliates can invest in CloudX node positions for $15,000 outright or $16,249 leased.

Outside of the US, iX Global affiliates can invest as little as $250 for a smaller node investment position.

iX Global markets CloudX as a “hybrid cloud” service, “powered by IN8 Tech”.

IN8 is a company owned by iX Global owner and
wanted fugitive
Joe Martinez.

Here’s the pitch from top iX Global promoter Travis Flaherty (right);

[11:01] It’s a hybrid cloud with decentralized ownership [
editor’s note: CloudX is “powered by IN8 Tech” which is owned by Joe Martinez, there’s nothing decentralized about it]
.

So instead of us going in and spending hundreds of millions of dollars to build some data center somewhere, and then fill it with racks upon racks of servers, what we are doing is we are giving the average person the ability to be able to be an owner of that equipment. And be able to house it in one of our data storage centers.

We provision the equipment. We monitor the equipment and ultimately help you even fill the equipment.

And guess what? You generate a revenue as a “digital landlord”.

[11:57] Once you own or lease to own and you have your equipment, it’s shipped over to our data centers.

They rack it and stack it, they get it plugged into our cloud, and then we start helping you load your server with tenants. And you get paid based on the usage.

Passive returns pitched by iX Global top out at $72,000 annually of a single $15,000 investment.

So that’s iX Global’s CloudX marketing pitch. Now lets get into the problems.

First and foremost, as per the
Howey Test
, iX Global’s CloudX node investment scheme constitutes a securities offering.

The Howey Test is four criteria an asset must meet to qualify as an “investment contract.”

If the asset is an “investment of money in a common enterprise, with a reasonable expectation of profits to be derived from the efforts of others” it is considered a security.

It is then subject to disclosure and registration requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

iX Global affiliates invest $15,000 into iX Global/CloudX/IN8 Tech (a “common enterprise”).

This is done on the promise of daily passive returns (“a “reasonable expectation of profits”), represented to be funded through the efforts of others (“derived from the efforts of others”).

All an iX Global affiliate does is invest $15,000 per node investment position they want. iX Global populates each node investment position with “usage”, corresponding to the daily ROI rate paid out ($2 a day per 1% of claimed usage).

Neither iX Global, CloudX or IN8 Tech or owner Joe Martinez (right

🤖 Quick Answer

What is CloudX and how does iX Global promote it?
CloudX is a cloud hosting service marketed by iX Global as a "hybrid cloud" platform powered by IN8 Tech. Affiliates can invest in CloudX node positions ranging from $250 to $16,249, depending on investment type and geographic location. The company presents it as a legitimate hosting service.

What is the connection between CloudX and IN8 Tech?
CloudX is powered by IN8 Tech, a company owned by iX Global's founder Joe Martinez. IN8 previously operated an NFT-based Ponzi scheme before the company shifted focus to the CloudX node position investment model.

How does CloudX operate as a securities fraud?
CloudX uses a "node positions" investment model where participants purchase hosting positions at fixed prices. Returns are generated through recruitment of new investors rather than legitimate cloud hosting services, characteristic of fraudulent

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