DexNet has been identified as a risky opportunity by Intelligence Commissioner users. It is similar to Qyral. We’ve received over 4 complaints against DexNet.
DexNet, a cryptocurrency multilevel marketing company run by Aleksey Kedo, who was involved in the Kairos Technologies pyramid scheme before, has been marked as possibly fraudulent. With its headquarters in Dubai, which is known for MLM crimes, and products like overpriced Android boxes for mining its XNET token, DexNet looks like a Ponzi and pyramid scam. Since the plan depends on constantly adding new affiliates and investing in its profit-sharing pool, its long-term viability is uncertain. Participants face significant legal and financial risks.
Get Your Money Back From These Scammers!
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Key Takeaways
Is DexNet Regulated? Do They Have a License?
DexNet is a new cryptocurrency multilevel marketing company that promises a mix of technology and investment possibilities. The company is run by Russian citizen Aleksey Kedo, who is best known for his role in the Kairos Technologies Ponzi scheme.
DexNet is his newest project. Along with Kedo, another founder named Igor Botnari brings with him a past of failed crypto projects.
Aleksey Kedo was a big supporter of the Kairos Technologies Ponzi scheme. He is now facing multiple warnings and steps from regulators, which caused Kairos to fail in 2016.
Even though he is being sued, including being arrested in Belarus and being charged with running a pyramid scheme in Turkey, Kedo moves on to starting DexNet.
Igor Botnari has been involved with a number of failed crypto projects, from platforms to investment Ponzi schemes. All of these projects have either shut down or lost public interest because they didn’t work out.
DexNet has many sites and tries to reach people all over the world. Countries like Russia, Ukraine, and Germany send a lot of traffic to the site. The company says it operates under the name “Dexnet Information Technology CO” in Dubai, which is known for not being strict about stopping MLM stocks fraud.
There are instant red flags about the legitimacy and safety of investing in DexNet because it is linked to Dubai.
The lack of regulation or the presence of poor regulation is a huge red flag. It means DexNet is a scam and most likely, an illegal operation.
Companies offering investment services or opportunities without having a license can vanish without leaving a trace. Furthermore, the lack of a regulatory license allows them to get away with it and face no legal consequences.
That’s why it’s vital for you to always check a company’s regulation status as well as its license information. The presence of a license allows consumers to reach out to an authority if something goes wrong.
In the case of DexNet, victims have nowhere to go due to the absence of a watchdog or license.
You should ask yourself the following questions when you come across a new investment firm or opportunity:
- Does the investment provider maintain transparency about its CEO?
- Do they have a license from a renowned regulatory authority?
- If the need arises, can I reach out to an authority to report this company as a scam?
Trading Conditions and Deposit/Withdrawal Methods at DexNet
The regular price for an Android box from DexNet is $1499, but resellers can get them for $999. To reward users based on how many devices are linked, these boxes mine XNET, an in-house token.
However, the business returns and real value of these boxes are questionable because they are priced too high compared to what the market normally bears.
Structure of Earnings
The affiliates are paid by selling Android boxes and getting new ones to join. There are different bonuses and fees to encourage affiliates to join. Notably, the plan lets you earn up to 500% on the first box purchase, but there is a catch: you have to pay a reactivation fee to keep earning after you hit the threshold, even if you don’t provide any more physical products.
DexNet’s benefits are based on ten levels of affiliates. Each level unlocks more bonuses and ways to make more money. The method is set up to build a large network of affiliates by offering bonuses and commissions for referrals and ongoing sales.
Investing in a “Profit Sharing Pool” is another part of the DexNet plan. This is where a portion of the company’s overall investment goes toward giving investors returns. This suggests that payouts will need to keep going as long as investments are made.
There are a lot of legal and moral problems with DexNet’s business plan, especially the way it relies on selling expensive hardware to mine a token that has no value.
The model has features of both a Ponzi scheme and a pyramid scheme. Its profit sharing pool depends on new investments for returns, and its pay system is based on recruiting new members.
Also, the fact that there isn’t a real outside source of income and the questionable claim that FileCoin is making money bring to light possible wire fraud, stock fraud, and money laundering.
However, it’s worth noting that many scammers disable their payment channels before shutting down their operations.
They might give you multiple reasons including:
- A technical error
- A glitch in their system
- Banking issues
- A “hacking attack”
And many others.
But in 9/10 cases, the scammers actually stop making payments and keep the money to themselves. Hence, the payment methods we discussed here might not work.
If you want to get your money back from a scammer, you’d need to file a chargeback.
DexNet Customer Service: Do They Handle Complaints Well?
When it comes to scammers, you should only measure the quality of their customer service if they respond to your complaint.
In the beginning, scammers tend to remain very accessible.
This means their representatives will keep calling you until you invest with them. Furthermore, they will act friendly and make it seem as if you’re one of their most valuable consumers.
However, they do all this just to win your trust.
Scammers understand that in order to convince someone to give them a large sum, they will need to seem like a friend.
Nevertheless, when you have invested a considerable amount of money and need to get it back, their customer support will become inaccessible.
All of a sudden, their numbers would either stop responding or become unavailable.
Still, they might remain accessible to convince you to invest further. Also, they might begin by making a few excuses regarding your payment.
However, in the end, the customer support won’t resolve your issues and become increasingly unavailable.
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DexNet Reviews: What Do Others Say?
It’s worth noting that many scammers tend to purchase fake reviews. Buying fake reviews has become extremely easy and it’s a multi-million dollar industry.
Scammers like DexNet tend to purchase fake reviews for their online profiles to make themselves seem more credible.
TIME Magazine investigated the fake review industry and estimated it to be worth more than $150 million. Certainly, there are a ton of scammers who want to seem legitimate and a bunch of fake reviews is the most effective way to do so.
That’s why you shouldn’t trust DexNet reviews easily.
It’s easy to identify fake reviews as well. You should look out for 5-star reviews that are posted by temporary accounts (profiles which only posted 1 or 2 reviews on the platform). Also, you should see if the positive reviews share any detailed information about their experience with the firm or not.
In the case of DexNet, chances are, you wouldn’t find many legitimate reviews.
Another prominent way scammers like DexNet enhance their credibility is by burying negative reviews and complaints under a lot of fake reviews.
This way, when you’ll look up “DexNet reviews”, you might not find many complaints. Or, you might find them buried within numerous reviews praising DexNet.
You should always look out for consumer complaints. In the case of DexNet, the most common complaints I found were about:
- Poor customer support
- Delays in payments
- High fees and charges
- Lack of transparency regarding their leadership team
- Aggressive sales staff
Do you have a similar complaint about DexNet? You can share your complaint in the comment section or submit an anonymous tip.
Is DexNet Legit Or Scam?
The mix of cryptocurrency, MLM, and questionable investing returns in DexNet is full of legal, moral, and financial risks. Potential investors should be very wary of this company because of its operations and its base in Dubai, which is known for being a hub for MLM crime.
The owners’ pasts are also questionable. As with all schemes of this kind, the drop in affiliate employment will eventually cause the scheme to fail, leaving most of the people who took part with nothing. Before putting money into DexNet or similar businesses, investors should be very careful and do a lot of research.
DexNet is an unregulated entity. Although they might fall under the jurisdiction of a watchdog, they don’t have the license to offer financial services to consumers.
The lack of a license means they are not answerable to any regulatory authority. As a result, the people behind DexNet can run away with your money without any prior notice. You should be extremely cautious when dealing with an unregulated service provider.
The absence of a watchdog also means you cannot report to them to anyone.
Also, due to the absence of specific regulations, there is no provision protecting you from the insolvency of this entity. If they go bankrupt, you won’t be able to do anything about it.
Can You Trust DexNet?
All the evidence suggests that DexNet is a scam. If you have lost money to them, there is still a chance you can get it back.
To recover your funds, you’d need to file a chargeback.
Frequently Asked Questions
Is DexNet a scam?
Can I withdraw money from DexNet?
Where is DexNet Located?
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How The DexNet Online Scam Works
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