HotNews No 106: Sixth Society – $200,000 Membership Securities Fraud – A Warning for Investors

Recently, investors have been increasingly facing various scams that present themselves as legitimate ways to make high returns. One of these platforms, which initially appeared to be an excellent opportunity, but has proven to be a serious scam, is Sixth Society. While at first glance everything seemed like a great chance for wealth, a deep analysis reveals the dark truth behind this company, which hides high-risk investment schemes and a pyramid structure.

What is Sixth Society?
Sixth Society presented itself as an exclusive investment platform offering membership in two main categories: “founder” membership for $200,000 and annual membership for $2,500. However, these memberships were nothing more than invitations to join a pyramid scheme, where payouts were made exclusively through the recruitment of new members, rather than through the actual sale of products or services.

Legitimacy Issues and Ownership
The platform was linked to Trustyfy, a company that acts as an intermediary between crypto wallet users and financial services, but its business model was further undermined by ties to shell companies. Sixth Society failed to provide any relevant information about its founder, and all we could uncover pointed to Volker Hartzsch and Elisa Giudici, who were previously linked to other dubious projects.

Moreover, Sixth Society completely avoided providing any information regarding its registration with relevant financial regulators, which clearly suggests potential violations of securities laws and securities fraud.

Membership Scam                    
For starters, Sixth Society offered no real products or services. Investors were merely encouraged to invest in memberships, thus supporting schemes that were solely based on recruiting new members. Members in the “founder” position were encouraged to invest $200,000, and in the promise of passive returns, the company stated that 50% of the revenue from various “projects and startups” would be shared with these members. Unfortunately, as often happens in such scams, all these claims were unfounded and lacked any backing.

Inevitable Collapse
As with any pyramid scheme, Sixth Society was set up to collapse once the number of new members declined. The money coming in from new investors was used to pay previous investors, a hallmark of a Ponzi scheme. Once new investments dwindle, the entire system will collapse, and most investors will lose their funds.

Conclusion: Be Cautious!
If you were considering joining Sixth Society or have already invested, it’s crucial to understand that this platform is a textbook example of a scam. Nothing is grounded in real economic activity; instead, it was designed to exploit new investors to pay off earlier ones. While these platforms disguise themselves as “opportunities” for investments in high-yield projects, their true nature is much darker.

A Warning to All Investors!
Don’t turn a blind eye to the risks. If you want to learn more about how to recognize similar scams and protect your funds, contact us right away. Our team is here to help you understand the true nature of investments and how to avoid falling victim to this and other scams.

Your DefendMe Team