Kancha Chora, a figure linked to multiple collapsed cryptocurrency schemes, is operating the MuQuant platform. The scheme, which launched in March 2023, promised investors significant monthly returns on their Tether (USDT) investments. MuQuant’s website, muquant.com, was registered privately on March 30th, 2023, and offered no clear information about its ownership or management.
Chora, who lists his location on LinkedIn as Maidstone, England, and claims ties to the UK and Nepal, has a history of promoting fraudulent operations. Earlier this year, he hosted a MuQuant marketing event in Vietnam, appearing on stage to endorse the venture. Prior to MuQuant, Chora was actively promoting the Gym Network Ponzi scheme. His past involvement includes promoting other failed schemes such as DasCoin, Cloud Token, and uFun Club.
MuQuant lacks any legitimate products or services for sale. Participants can only recruit others into the MuQuant affiliate program. The scheme entices investors with tiered monthly returns based on their USDT investment amount. Investments ranging from 10 to 4,999 USDT promised a 7% monthly return, capped at 300% of the initial investment. Higher tiers offered 10% to 15% monthly returns, capped at 350% to 500% respectively.
All promised returns were to be paid in MuQuant's native MUQT token. Investors’ initial USDT deposits were locked for a minimum of one year. The scheme also offered recruitment bonuses, paying affiliates commissions on investments made by those they recruited down three levels. Level 1 recruits earned a 25% commission, level 2 earned 15%, and level 3 earned 10%.
MuQuant claimed to generate revenue through arbitrage trading, but provided no evidence to support this assertion. The passive investment opportunity offered constitutes a securities offering. As MuQuant failed to register with any financial regulators, it is engaged in securities fraud. The only verifiable income source for MuQuant was new investor funds.
Using new investments to pay existing investors is the hallmark of a Ponzi scheme. Such schemes inevitably collapse when recruitment slows and new money stops flowing in. The mathematical structure of Ponzi schemes guarantees that most participants will lose their money upon collapse. MuQuant’s business model included an inherent exit-scam mechanism. The MUQT token, a BEP-20 token, could be created cheaply and quickly. All returns were paid in this token, which held no value outside the MuQuant ecosystem. When the scheme inevitably collapsed, investors were left with worthless tokens.
On November 21st, 2023, MuQuant collapsed.