Back in July the Turkish Customs and Trade Ministry
launched an investigation
into Kairos Technologies.

The aim of the investigation was to establish whether or not Kairos Technologies was a pyramid scheme.

As with most countries, the operation and promotion of pyramid schemes is illegal.

In a press-release issued yesterday, the Customs and Trade Ministry announced the results of their investigation.

As per the Customs and Trade Ministry’s findings, in Kairos Technologies’ compensation plan

the reward for bringing new members to the system is kept at a higher level than rental income, and members are indirectly encouraged to gain new members to the system rather than to obtain rental income from the product packages they buy.

For those unfamiliar with
Kairos Technologies’ business model
, the company combines affiliate recruitment with a Ponzi investment (the cloud services side of the business).

As per Turkish law;

A typical pyramid system is formed as a system of expectation of earnings which is very difficult to realize due to the fact that the income of those who get more, the income of the members of the lower arms of the system is transferred to the members at the upper levels of the system.

Pyramid scheme regulation is a criminal matter in Turkey, with the Customs and Trade Ministry press-release suggesting the matter has been forwarded to the Public Prosecutor’s Office.

As it stands, promotion of Kairos Technologies in Turkey is illegal and those found to be doing so are at risk of criminal prosecution.

At the time of publication, Alexa estimate that Turkey is the largest source of traffic to the Kairos Technologies website (26%).

On top of the ban in Turkey, last week Austria’s FMA
issued a warning
against a shell company Kairos Technologies was using to pay affiliates with.

🤖 Quick Answer

What did the Turkish Customs and Trade Ministry conclude about Kairos Technologies?
The Turkish Customs and Trade Ministry determined that Kairos Technologies operates as a pyramid scheme. The investigation found that the compensation plan prioritizes recruitment rewards over product rental income, incentivizing members to recruit new participants rather than generate earnings through legitimate business activities.

Why is the pyramid scheme structure problematic in Turkey?
Pyramid schemes are illegal in Turkey, as in most countries worldwide. The regulatory framework prohibits their operation and promotion because such schemes are inherently unsustainable and primarily benefit early participants while causing financial losses to later recruits.

How does Kairos Technologies' compensation model function as a pyramid scheme?
The scheme rewards recruitment of new members at higher levels than income from actual product packages. This structure encourages participants to focus on expanding the membership base rather than engaging in legitimate rental income activities, characteristic of illegal pyramid operations.

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