Crowd1 must stop promoting its Ponzi scheme – Bank of Namibia
The Bank of Namibia this week warned promoters and participants of Crowd1 to stop their business operations in Namibia with immediate effect.
Dr Emma Haiyambo Director of Strategic Communications at the Bank said due to its pyramid model of operation, Crowd1 contravenes Section 55A of the Banking Institutions Act of 1998. Haiyambo said if promoters and participants do not adhere to their warning, the Bank will take further appropriate action as provided in the Act.
Investigations conducted by the Bank show that the core business activity of Cowd1 is to introduce new members of the public to its business practice and participants who join as members are encouraged to recruit new members through promises of bonuses and additional owner rights.
“The primary source of income for Crowd1 is generated through the recruitment of new members. As soon as the recruitment of new members ceases, members at the bottom of the structure will not receive the promised bonuses or owner rights,” Haiyambo said.
Haiyambo further added that Crowd1 does not sell tangible products or render any service of essential value with the primary source of income for Crowd1 being the sales of membership packages to new members.
“It is evident that the business model of Crowd1 Network Limited is not sustainable and will result in members of the public, especially those at the bottom of the scheme, losing their money,” Haiyambo said.