The Central Bank of Russia issued a warning on August 31st identifying Torexo Finance as exhibiting “signs of a pyramid scheme.” This regulatory alert signals significant risk for individuals engaging with the financial platform.

An analysis conducted in May 2021 by ScamTelegraph revealed Torexo Finance operated as a Ponzi scheme. The operation was attributed to scammers fluent in Russian, suggesting origins in Russia or Ukraine. Early investor data showed Russia as the primary source of website traffic at 45%, followed by Vietnam at 15% and Ukraine at 11%.

More recently, Torexo Finance has shifted its recruitment focus geographically. Madagascar now represents 33% of the scheme's website traffic, with Egypt at 18%. Vietnam's share has decreased to 8%, indicating a move towards less regulated markets to sustain operations.

The scheme’s structure mirrors typical Ponzi operations where early investors are paid with funds from new recruits. This model inherently requires a continuous influx of new participants to remain solvent. As regulatory scrutiny increases or recruitment slows in established regions, operators often seek new territories.

The warning from the Central Bank of Russia serves as a critical alert to consumers. Pyramid schemes are unsustainable financial frauds that inevitably collapse, leaving most participants with substantial financial losses. Consumers are advised to exercise extreme caution and conduct thorough due diligence before investing in any financial opportunity.