HotNews No. 142 : CapitalSpring – Dubai MLM Crypto Ponzi

Recently, international MLM scams using cryptocurrencies as bait have become increasingly common, and one of the most prominent is CapitalSpring. The platform promises high returns on cryptocurrency investments, but a closer analysis of its business model clearly indicates that it operates as a Ponzi scheme. Although its website lists a London, UK address, this location has no connection to the actual business, and the domain “credi-spring.org” was privately registered, making verification of ownership and legitimacy difficult. Certain promoters linked to CapitalSpring have been identified, including David Kalu, the author of the platform’s marketing materials.

CapitalSpring does not offer any retail products or services. The only way promoters can earn income is by recruiting new members and investing their own funds in undisclosed cryptocurrencies. The platform offers several investment plans promising passive returns ranging from 0.15% per hour to as much as 15% per week, depending on the amount invested. Payments are made through a unilevel compensation structure, where the income of new members is distributed across multiple levels, limited to five, with higher contributions and multiple levels resulting in significantly higher commissions for promoters.

The key issue with CapitalSpring is that there is no verifiable source of income other than new investments. The platform provides no evidence that “professional traders” are generating returns from which participants are paid. This means that payouts are entirely funded by new members’ contributions – the defining characteristic of a Ponzi scheme. Mathematically, this model is unsustainable: when recruitment of new members slows or stops, the inflow of funds decreases, inevitably leading to the collapse of the system. Most participants then lose their invested capital.

It is crucial for potential investors to understand the serious risks involved and recognize that no legal or verifiable income sources exist within this model. Before participating in such platforms, consulting legal and financial experts is strongly advised. Awareness and caution remain the most effective safeguards against financial fraud and the loss of funds.

Your DefendMe Team