Star Network has received a fraud related desist and refrain order from California.
As per the
Department of Financial Protection and Innovation’s June 5th order
;
Star Network operated a mobile phone software application (app) called Star Network – Social DeFi.
The Star Network app was available for download on both the Apple App Store and the Google Play Store.
The Star Network app was created by Big Leap Limited, a limited company incorporated in the United Kingdom, with a principal place of business at Formal House, 60 St. Georges Place, Cheltenham, Gloucestershire, England, GL50 3PN.
Beginning at least as early as 2023, Star Network offered and sold securities in the form of investment contracts in California through general solicitations on its website and app.
These securities were crypto asset interest-bearing accounts in which an investor deposited funds and Star Network promised to pay interest on the deposited funds.
BehindMLM isn’t familiar with Star Network. From what I’ve been able to ascertain though, Star Network is your typical “task-based” app Ponzi scheme.
Star Network affiliates sign up and invest cryptocurrency. This is done on the promise of a passive ROI, contingent on them logging in daily and clicking a “rocket” button in Star Network’s app.
This is from Star Network’s website;
Our app enables you to earn Star by making contributions to the Star Network community.
To start earning Star, login the app and click the rocket button to activate a 24-hour earning session.
There’s also a “free investment” option, through which Star Network affiliates can accrue returns via just clicking the rocket button daily. Typically these feeder options don’t let you actually withdraw unless an investment is made.
Star Network pays returns in STAR and STAR GOLD tokens. Both are internal shit tokens that are worthless outside of Star Network.
As of June 27th, Star Network claims it has 11.3 million investors.
This is unlikely given SimilarWeb tracked just ~172,000 monthly visits to Star Network’s website in May 2024.
The majority of Star Network website traffic originates from Vietnam (12%), Turkey (10%), Russia (10%), the US (10%, down 46% month on month) and the UK (6%).
On the MLM side of things, Star Network offers a daily ROI match down two levels of recruitment (unilevel):
25% match on level 1 (personally recruited affiliates)
5% on level 2
Star Network doesn’t disclose who runs the Ponzi scheme on its website. Star Network’s official FaceBook page however suggests it is run by scammers operating out of Asia, with at least one connection to the US.
Comments on Star Network’s FaceBook page suggest investors accrue STAR token but aren’t able to withdraw (KYC block).
Star Network’s admins purportedly generate revenue by showing ads through their apps.
As a result of committing verifiable securities fraud in California, DFPI has ordered Star Network “to desist and refrain from the further offer or sale of securities
🤖 Quick Answer
What is the Star Network fraud case in California?Star Network received a desist and refrain order from California's Department of Financial Protection and Innovation on June 5th for operating an unregistered securities offering. The company, created by UK-based Big Leap Limited, offered investment contracts through its mobile app without proper authorization, violating state securities regulations.
Which platforms hosted the Star Network application?
The Star Network app, officially named Star Network – Social DeFi, was available for download on both the Apple App Store and the Google Play Store, making it accessible to broad audiences across different operating systems.
Who is the company behind Star Network?
Big Leap Limited, a limited company incorporated in the United Kingdom, created and operated Star Network. The company maintains its principal place of business at Formal House, 60 St. Georges Place, Cheltenham, Gloucestershire, England, GL50 3PN.
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