MLM & Pyramid Schemes: A Look Into The ITP Crypto Scam | Wealth Recovery Solicitors

MLM & Pyramid Schemes: A Look Into The ITP Crypto Scam

The ITP scam, also known as Infinity Trade Pro, is a trading platform that more and more clients are coming to us in an attempt to get their money back. It has long been surrounded by scrutiny within the investment community due to the belief that ITP operates as a Ponzi scheme, or a pyramid scheme. Although ITP was a scam, it was fronted as an “investment” scheme. It claimed to offer investors an amazing return on their initial deposit or investment, particularly if they recruited new members.  

As with other crypto scam schemes, the ITP scam operated internationally, however, it largely affected traders and investors in the UK due to the referral scheme it offered to traders. Although fronting themselves on helping investors grow their wealth, the ITP crypto scam operated with a fraudulent approach. 

The ITP scheme came crashing down in 2023, but many investors are now only just realising that the scheme was a crypto scam. It has also been reported that ITP is still operating and is considering a relaunch. With that in mind, we take a look at the ITP crypto scam so that, if it should relaunch in the future, investors and traders are well aware of the scheme.

What Does The ITP Corp Do?

The ITP Corporation claimed to be a crypto investment platform which specialised in using a unique currency that was powered by their own AI. They claimed that, by using this technology, they garnered a lot of financial success – a claim that they went on to use to attract new investors. 

As part of their scam, ITP claimed to provide investors with returns of 4% per day which would work out to be over 1,000% per year. In their marketing materials, they touted this as a “business miracle” and used “claims” to support these stats, using press releases which were in broken English. The reality is that ITP was a crypto scam and the corporation was running a Ponzi scheme. Any dividends that the company “paid out” were made up of the money of new investors invested. 

One thing that investors should ask themselves is, if the ITP scam was legitimate and did provide the huge returns as promised, why would they need to ask you for money? As well as this, as is typical with other Ponzi and crypto scams, if they were a regulated trading platform, they would allow users to withdraw their investments or trace where their money had gone. 

Was ITP Regulated? 

No, ITP was not regulated. Their documentation stated that they were located in Washington, USA, but it is widely believed that this is false and was a location chosen to build trust. As with any investment you make, you should always take some time to research the company and business beforehand. You can do this by visiting the Financial Conduct Authority (FCA) website and using their confirmed directory to prove the legitimacy of the company you want to invest with. 

Regarding the ITP scam, the FCA warned that they weren’t regulated and that investors should avoid using them. They stated that “this firm (ITP) may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams”. 

Was The ITP Scam A Pyramid Scheme? 

ITP never had any intention of paying money out to investors and all money that investors paid into the corporation was almost immediately lost, never to be seen again. Some individuals claimed that they got their funds, but on closer inspection, it was found that they were actually ITP employees. Numerous people were paid to promote the scheme who had ties or links with the company to entice more investors into parting with their money. The behaviour seen in the ITA scam is classic of that in pyramid schemes.

Pyramid schemes are reliant on building a steady stream of new investors as this is what funds the payouts for previous investors who are looking for a payout. What actually happens is that the creators of the scheme go on to make large amounts of money from investors, as it is unlikely that any investors will ever get money back from their investments. This ongoing cycle continues until either new investor recruitment begins to stall, or the scheme becomes too risky to continue. 

Pyramid schemes will inevitably collapse, much like in this way with the ITP crypto scam, and it is investors who are left to deal with the fall out. Not only are they left to come to terms with the fact that their money has been taken from them – which is often very high sums – but their trust is broken and can affect all future investments. 

Can I Recover Money Lost To The ITP Scam?

Many investors believe that, once their money has gone as a result of pyramid schemes, including the ITP scam, they can’t recover it and it is lost for good. This isn’t always the case as, even if your bank has said they are unable to help, there are options available. Here at Wealth Recovery Solicitors, we have experience in recovering funds as a result of the ITP scam, including other pyramid schemes and trading scams. Contact us today to arrange a free consultation with our team of award-winning lawyers and get your recovery journey started! 

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