Treasure NFT, a platform that claims to offer AI-driven NFT trading with substantial returns, has been alleged as fraudulent scheme, with multiple red flags indicating Ponzi scheme-like activity.
Initially promoted as a decentralized marketplace offering daily returns between 4.3% and 6.8%, and monthly profits of up to 30%, the platform’s promises quickly unravelled as experts raised alarms about its unsustainable profit guarantees.
The platform’s operations, largely targeting economically disadvantaged and less-educated communities in regions such as Pakistan’s tribal areas, Balochistan, and Sindh, seem to primarily rely on a referral-based model.
New users are recruited to invest in the platform, while the profits for earlier investors are paid out by the funds from new participants—an apparent hallmark of a Ponzi scheme. This structure creates an illusion of profitability but ultimately leads to financial collapse when new investments dwindle.
A deeper dive into the platform’s operations reveals several troubling aspects.
Treasure NFT claims to be registered in Tempe, Arizona, but a closer look at the registration details reveals discrepancies, with the address pointing to a Russian music academy instead of the platform’s purported headquarters.
Furthermore, a comprehensive investigation revealed that the LinkedIn profiles used to represent the company were fabricated, with no verifiable information about its founders or operational team.
Financial experts have raised concerns about the unrealistic nature of the promised returns.
Legitimate NFT markets do not guarantee profits at the levels claimed by Treasure NFT, and such figures can only be sustained by continually bringing in new investors. When the flow of new participants slows, the system collapses, leaving the majority of users with significant losses.
Another alarming sign is the platform’s refusal to provide users with easy access to their funds.
Multiple complaints from users indicate that their accounts were frozen without explanation, and withdrawal requests were either delayed or denied. Attempts to contact customer service have largely gone unanswered, reinforcing the suspicion that the platform is a scam.
Treasure NFT’s referral-based model further underlines the fraudulent nature of its operations.
The company relies more on new recruits than on genuine NFT transactions to generate revenue, suggesting that the platform is not conducting real business but is instead operating a pyramid-like scheme.
Additionally, the platform uses fabricated testimonials from new accounts created specifically for posting positive reviews, further misleading users about its legitimacy.
Despite claiming to have a Money Services Business license from FinCEN, there is little proof that Treasure NFT operates within the law, and regulatory authorities in India and West Bengal are reportedly investigating the platform for potential fraud.
As the platform’s fraudulent nature becomes clearer, financial experts are advising potential investors to exercise extreme caution. They recommend verifying a platform’s legitimacy through independent research, avoiding any investment offering guaranteed returns, and steering clear of platforms that rely on a referral system for generating revenue.
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