Whizz Network, a gambling MLM scheme, lists a UK corporate address but its operations appear to violate FCA regulations. The company, which markets blockchain-based games, NFTs, a blockchain lottery, and metaverse services, is now under scrutiny following the Financial Conduct Authority's October 8th, 2023 ban on MLM crypto investment schemes.
Mark Davis, identified as Whizz Network's CEO, has a history linked to fraudulent schemes. Davis previously served as CEO of AladdinBot, an alleged AI trading bot Ponzi scheme. Believed to be an Australian national, Davis reportedly resides in Bali, Indonesia. This marks his reappearance in the MLM crypto space since his involvement with AI Trade in 2018.
Davis's past includes co-founding PGI Global in 2020 with RV Palafox. PGI Global operated as an MLM crypto Ponzi scheme promising 200% returns. The scheme collapsed in 2021, reportedly causing millions of dollars in consumer losses. A US criminal investigation into PGI Global was confirmed in October 2021, though no further updates have emerged. Palafox, holding dual US and Philippine citizenship, has not been publicly seen since PGI Global's collapse. Davis appears to have relocated to Indonesia. The extent of Palafox's involvement in Whizz Network remains unclear.
Whizz Network lacks any retailable products or services. Affiliates can only market the Whizz Network affiliate membership itself. The company's core offering involves affiliates investing tether (USDT) into WZT Ponzi points, with one USDT equaling one WZT. Investors are promised passive monthly returns ranging from 18% to 36%.
The investment structure is divided into sixteen tiers, ranging from Plan 100 (100 WZT) to Plan 1000K (1,000,000 WZT). These returns are paid out over a 12-month period. Whizz Network has not specified the internal conversion rate for WZT. The MLM component of Whizz Network compensates affiliates based on the recruitment of new investors.
The affiliate structure within Whizz Network includes twenty-two distinct ranks. Qualification for these ranks is based on investment levels and the total downline investment volume generated by the affiliate. For instance, the W1 rank requires signing up and investing at least 100 WZT. The W2 rank demands an investment of at least 250 WZT and generating 1200 WZT in total downline investment. Higher ranks, such as W3 and W4, require progressively larger investments and downline volumes.
The FCA's ban on MLM crypto investment schemes directly impacts operations like Whizz Network. Companies operating in this space, especially those claiming a UK presence while offering unregulated cryptocurrency investments, face significant legal and regulatory challenges. The FCA's action aims to protect consumers from the high risks associated with such schemes, which often collapse and result in substantial financial losses for participants.
Consumers who believe they have been victimized by Whizz Network or similar schemes are advised to report their experiences to relevant financial regulatory bodies. In the UK, this would include the Financial Conduct Authority (FCA). In the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are primary agencies for investigating investment fraud. The Australian Securities and Investments Commission (ASIC) would be the relevant authority for Australian nationals.