Three of Jan Gregory’s MLM crypto Ponzi schemes have received fraud warnings from California’s Department of Financial Protection and Innovation.

As per an August 9th press-release, the DFPI has cited
CloudFi
,
CoinMarketBull
and
Vortic United
for “violations of California securities laws”.

The entities and individuals named in these actions solicited funds from investors to purportedly trade crypto assets on their behalf.

The entities in today’s actions are classic examples of high-yield investment programs (HYIPs).

HYIPs are investment frauds that typically promise high returns with low risk, promise overly consistent returns, provide little details about the people running the HYIP, use vague language to describe how the HYIP makes money, offer referral bonuses, facilitate deposits and withdrawals with crypto assets, and use social media to gain attention and attract investors.

“HYIP” has long been MLM underbelly code for “Ponzi scheme”. These days you’ll also find Ponzi promoters referring to them as “platforms”.

DFPI’s fraud warning is accompanied by three Desist and Refrain orders.

CoinMarketBull
, or CMB, was a Ponzi scheme that pitched up to 1.8% a day. CoinMarketBull
collapsed
in June 2023.

DFPI cites Jan Gregory as CoinMarketBull’s Global Leader and Corporate Brand Manager.

At all relevant times, Cerato controlled and induced or provided substantial assistance to CoinMarketBull within the meaning of Corporations Code section 25403, subdivisions (a) and (b).

CoinMarketBull held itself out as a cryptocurrency trading platform.

In reality, a significant portion of the funds that CoinMarketBull received from investors was used to pay other investors, in the manner of a Ponzi scheme.

Vortic United
is a Ponzi scheme that also pitches up to 1.8% a day.

Vortic United is run by Boris CEO Jensen Robles, played by German national
Rene Schwarze
.

DFPI cites Jan Gregory as Vortic United’s Chief Marketing Officer.

As per DFPI’s Vortic United Desist and Refrain order;

Vortic United held itself out as a cryptocurrency trading platform.

In fact, Vortic United was luring investors into what is known as a High-Yield Investment Program (HYIP).

HYIPs are unregistered investments typically run by unlicensed individuals – and are often frauds.

The Portfolios offered by Vortic United were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

CloudFi
is a Ponzi scheme that pitches a 1.25% daily ROI. DFPI cites Jan Gregory as CloudFi’s CEO.

As per DFPI’s CloudFI Desist and Refrain order;

CloudFi held itself out as a cryptocurrency trading platform.

In fact, CloudFi was luring investors into what is known as a High-Yield Investment Program (HYIP).

HYIPs are unregistered investments typically run by unlicensed individuals – and are often frauds.

The Packages offered by CloudFi were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

Gre

🤖 Quick Answer

What are the three crypto schemes cited by California's DFPI for securities violations?
CloudFi, CoinMarketBull, and Vortic United are three MLM crypto Ponzi schemes operated by Jan Gregory that received fraud warnings from California's Department of Financial Protection and Innovation for violating state securities laws in August.

What characterizes high-yield investment programs as fraudulent schemes?
HYIPs are investment frauds promising high returns with minimal risk, overly consistent profits, vague operational descriptions, limited transparency about operators, referral bonus structures, and deposit facilitation mechanisms designed to deceive investors systematically.

How do entities in these schemes solicit investor funds?
These entities solicit funds from investors by claiming to trade cryptocurrency assets on their behalf, utilizing misleading marketing strategies that emphasize unrealistic profit potential while concealing actual operational mechanisms and management details from potential victims.

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