Originally Syndicated on May 9, 2023 @ 10:19 am
Leading engineer Ronald Aai and project manager Daniel Csokas, who had ties to the creators of the other MLM cryptocurrency fraud, launched Cloud Token in Singapore. The Ponzi scam PlusToken was revealed to be. Police claim that the crypto scheme defrauded investors of $4 billion.
In the world of cryptocurrencies, Cloud Token was introduced in 2018. The CTO of Plustoken promoted it as the first online wallet that could incorporate all of the current most well-liked crypto assets, which is similar to the Ponzi scheme.
The wallet reportedly held USDT, TUSD, BCH, CTO, BTC, LTC, ETH, and DOGE, according to the creators. Like Plustoken, CTO guaranteed 6-12% interest each month.
According to a story from June, the founder of the MLM cryptocurrency scheme Ronald Aai had to move since the Cloud Token initiative was having problems in Singapore.
Ronald Aai in the Cloud Token Securities Fraud
Multiple justifications are offered by MLM Ponzi schemes for not registering their securities offering.
One of the most blatantly fraudulent perpetrators of securities fraud is Ronald Aai, founder of Cloud Token Wallet. For those who are not aware of the company, Cloud Token affiliates invest in CTO points.
Outside of Cloud Token, CTO points have no monetary value and are not publicly exchanged.
Affiliates can pay out since Cloud Token gradually increases the internal value of CTO points.
When an affiliate requests a withdrawal, Cloud Token uses money that has already been invested to pay them at the current CTO rate. Ronald Aai is in charge of Cloud Token despite being labeled as its CTO.
What Ronald Aai Has to Say About Investing in Cloud Tokens
Ronald Aai mainly uses Facebook to communicate with Cloud Token investors. In a blog released recently, Ronald Aai described the investment structure for Cloud Token:
It is neither an ICO or STO, but rather a reward that is distributed digitally and allows holders to trade it for well-known cryptocurrencies.
All transactions are handled by the project, and awards are given to the contributors.
Let’s Dissect Securities Law One Step At A Time:
The Australian Securities and Investment Commission has first registered Cloud Token;
-(Pay a price, submit specified details) That is a low bar;
-It solely relates to Australian investment solicitation.
Website traffic from Australia is not very significant for Cloud Token. In other words, investment activity is minimal or nonexistent. The United States is the most significant source of website traffic for Cloud Token (20%), according to Alexa.
To assess if the income potential of Cloud Token is a security, it is necessary to demonstrate the existence of an investment contract.
The Howey Test is used in MLM companies to do this. A financial investment contract is defined by the Howey Test as:
An agreement, deal, or scheme in which a person invests money in a joint venture and is advised to base their expectations of returns primarily on those of the promoter or another party.
Since 1946, the Howey Test has been in use. It has been utilized by the SEC to demonstrate the existence of an investment contract in various instances.
 Ronald Aai All trading is handled by the project, and prizes are distributed to participants. |
| Faith Sloan We are depositing our cryptocurrency into the JARVIS wallet; nevertheless, the corporation is the one making investments, not us. |
| Lastly, here is Cloud Token itself; Users of Cloud Token Wallet have the option of using AI and algorithms to trade cryptocurrencies and generate passive revenue. Users of Cloud Token Wallet receive daily payments of 6%–12% per month through the JARVIS arbitrage bot. (HAL) offers Cloud Token Wallet consumers enticing monthly returns of 18%–30%, paid every day. |
For better comprehension:
A deal, procedure, or method where a participant invests money in a joint venture and anticipates profiting exclusively from the promoter’s or another participant’s efforts. (Cloud Token claims to engage in AI trading, with the proceeds going toward paying affiliates who redeem their Cloud Token points.)
For affiliates, Cloud Token serves as an investment contract. It is therefore a security offering. In each country where it seeks investment, Cloud Token must register with financial regulators to operate legally.
Faith Sloan resides in the US, and according to website traffic, US investors now make up the majority of Cloud Token’s funding.
Ronald Aai recently left Singapore and took refuge in Malaysia.
The Cloud Token of Ronald Aai Does Not Provide Any Information
In addition to engaging in securities fraud by selling unregistered securities, Cloud Token omits to educate investors about its purported Jarvis and Hal AI trading bots.
Even if Cloud Token had SEC and Bank of Malaysia registrations, they would still need to properly disclose to investors the existence of their Jarvis and Hal trading bots.
This includes details on the bot’s creator, its qualifications, its owner, and verifiable trading performance.
So that rewards paid to Cloud Token affiliates may be linked with trading revenue made by the Jarvis and Hal bots, the findings must be audited by a third party.
The website for Cloud Token does not offer any of these data. Nothing has also been reported to ASIC.
Cloud Token: Is It A Scam?
It is, indeed! In addition to the securities fraud that was conducted in the United States, Malaysia, and Singapore have not also registered it.
- A Ponzi scheme
- To good to be true
- Many complaints from the customers
There is a significant amount of upfront labor, no guarantee of success, and, most crucially, low commissions.
Performing the assignment first and getting the money later is perfectly acceptable. However, it is not worthwhile if your reward after three months of work is a $50 commission.
Information on Ronald Aai and Cloud Token Wallet
The owner and founder of Cloud Token Wallet is Ronald. At the beginning of his career, he created several web businesses. He is of Chinese ancestry and was born in Malaysia in 1977. In 2003, he served as the technology director for a mobile phone firm in Shenzhen, China.
He established Maxitech, a company that produces software and cell phones, in 2004. In 2017, Ronald Aai and his group in Singapore established Blockchain 4.0, a mobile technology startup.
Regarding Cloud Token Wallet
According to Cloud Token Wallet, it provides services for cryptocurrency wallets. Digital assets can be sent, received, and stored by users utilizing encrypted networks.
It enables the exchange of numerous crypto assets, including Dash, bitcoin, ripple, and Ethereum, using AI-powered technology. Both iOS and Android smartphones can download the software.
Conclusion
When Cloud Token stopped paying back its investors in 2019 and the platform’s sole representative, Ronald Aai, disappeared, this caused criticism. The brand simultaneously seems to be a con.
The SEC, DOJ, or Bank of Malaysia must just collect it and take action. Alternately, Cloud Token disintegrates after all available recruits have been used up, and Ronald Aai, Faith Sloan, and their accomplices escape with their loot.
Everyone else suffers, and the MLM cryptocurrency industry will receive yet another “sorry for your collective losses” entry from reporters.
