LyoPay

Quick summary on LyoPay

WeWe Global launched in July 2021, presenting itself as a legitimate cryptocurrency platform but quickly revealed as a Ponzi scheme using WEWEX Ponzi points. In 2022, the scam expanded by introducing LyoFI and LyoPay, rebranding with LYO tokens, but continuing the same fraudulent tactics. The introduction of LFI tokens in late 2022 was yet another attempt to prop up the failing scheme.

Regulatory Response in New Zealand
On February 8, 2023, New Zealand’s Financial Markets Authority (FMA) issued a formal warning against WeWe Global and LyoPay, citing their failure to register on the Financial Service Providers Register and lack of regulatory oversight. Despite the warning, the companies continued aggressive marketing, including an “Oceania Tour” led by Diego Endrizzi, targeting vulnerable investors.

The Players Behind the Scam
Key figures include Diego Endrizzi, who moved to Dubai, and New Zealand promoter Jonathan Callinan, who shifted to cryptocurrency fraud after a failed business venture. Both exploited the trust of investors, with Callinan dismissing concerns about the scheme’s legitimacy.

The Impact on Victims
Many victims, including retirees, were lured by promises of financial freedom. Heartbreaking stories emerged, including an elderly woman who lost her entire retirement savings.

Collapse and Lessons Learned
The scam collapsed on August 18, 2023, leaving investors unable to access their funds. This serves as a cautionary tale of cryptocurrency fraud, underscoring the need for vigilance and consumer awareness to avoid falling victim to similar schemes.