At the heart of the Liyeplimal scandal: Similarities with OneCoin

The Liyeplimal project is arguably the most violent scam in the history of cryptocurrencies, having particularly impacted the African continent. It was implemented by the alleged businessman Émile Parfait Simb.

Introduction

The world of crypto-currencies is constantly evolving, offering numerous investment opportunities. However, it’s essential to remain vigilant and do your own research when it comes to investing your money.

Unfortunately, some ill-intentioned people are taking advantage of the crypto-currency craze to set up sophisticated scams. One such scam is the Liyeplimal scandal, which has surprising similarities to the Onecoin affair.

The CEO and founder of Global Crypto Currencies Trading, Global Investment Trading (GIT) and SIMB Portail, created in 2016, 2017 and 2018 respectively (the 3 entities belonging to Global Trading Investment (GIT)); is also the CEO of the Liyeplimal project.

Understanding Liyeplimal: What is it and how does it work?

Before diving into the similarities between Liyeplimal and Onecoin, it’s important to understand what Liyeplimal is and how it works.

Liyeplimal means “Poverty is over” in the Bassa language of Cameroon.

Liyeplimal claimed to be a crypto-currency investment platform, promising high and fast returns. Investors were attracted by the idea of making their money grow quickly, but unfortunately it was too good to be true.

The promoters of the project used a Ponzi scheme. This pyramid structure cannot operate indefinitely and always collapses in the end.

It should be noted that Ponzi schemes generally promise unrealistic and unsustainable returns to investors. This is done by using the funds of new investors to pay for the returns of old investors (MLM system), thus creating an illusion of profitability.

These schemes eventually collapse when the flow of money from new investors can no longer sustain the promised payments. As a result, many investors suffer considerable financial losses.

As posted on the project’s website, which is still up to date, the MLM system is still in use.

Here’s how the Liyeplimal scam worked in detail:

1. High Return Promises: Promoters attracted investors by promising abnormally high returns, often well above the typical rates of return offered by legitimate investments. These tempting promises were intended to entice investors to pump more money into the platform.

2. Continuous Investor Recruitment: To keep the scheme running, project operators constantly recruited new investors by offering them incentives and encouraging them to reinvest their profits for even greater returns. This process fuelled an artificial growth cycle and reinforced the illusion of profitability.

3. Initial payments to investors: In the early days, early investors may have received payments in line with promises of high returns, helping to build confidence in the platform. This encouraged more and more people to invest in the hope of making similar profits.

4. Scheme collapse: In the absence of real income generated by legitimate and sustainable business activities, the Ponzi scheme eventually collapses. Indeed, when new investors can no longer be recruited in sufficient numbers to pay the returns promised to existing investors, the process collapses. This often leads to massive financial losses for the majority of participants, as the funds invested are usually lost when the scheme collapses.

5. Proposed purchases of different packs with weekly interest: As shown in this image (the smallest investment at the time of writing), the idea would be to pay back investors’ stake on a weekly basis, with the promise of interest calculated according to a formula that only the promoters would know the secret of, since it varies according to the amount of the associated investment.

Unravelling the OneCoin affair: A brief overview

Now that we know what Liyeplimal is, let’s take a look at the OneCoin affair to understand the similarities.

OneCoin claimed to be a revolutionary cryptocurrency that would rival Bitcoin. Many investors were attracted by this promise and invested heavily. However, OneCoin turned out to be a sophisticated fraud. The cryptocurrency did not really exist and the promised returns were based on false claims.

Like Liyeplimal, OneCoin also used a Ponzi scheme to maintain the illusion of high returns. When the scam was discovered, thousands of investors lost their money.

For more information on Onecoin, please read my article on the subject.

Similarities between Liyeplimal and OneCoin

Having understood the basics of Liyeplimal and Onecoin, let’s highlight the shocking similarities between these two businesses.

The first obvious similarity is the use of a Ponzi scheme. Funds from new investors were used to pay previous investors, creating an illusion of success and opportunity.

Another important similarity is the way these scams were promoted. Both Liyeplimal and Onecoin used sophisticated marketing techniques to attract new investors.

Now, let’s list some other key similarities between the 2 projects in question.

• Promises of high returns: Both cases attracted investors by promising extremely high financial returns. Unfortunately, these often proved unsustainable and unrealistic over the long term.

• Ponzi scheme: Both Onecoin and Liyeplimal are widely regarded as Ponzi schemes. Funds from new investors are used to satisfy old investors, creating an illusion of profitability.

• Use of Blockchain technology: Both businesses claimed to operate in the cryptocurrency sector. They used the growing popularity of digital assets to attract investors and create a facade of legitimacy and innovation.

• Aggressive marketing: The promoters of both deals implemented aggressive marketing campaigns to recruit new investors. The focus was on persuasive sales strategies, often exploiting potential investors’ unfamiliarity with the crypto ecosystem.

• Significant financial losses: Investors involved in Onecoin and LIYEPLIMAL suffered huge financial losses when these schemes collapsed, leaving many participants without legal recourse to recover their lost investments.

• Organisation of glamorous events: These were often used to give an appearance of legitimacy to these projects. This made it more difficult for investors to spot the warning signs of a scam.

• Use of ambassadors in strategic countries: As with the previous similarity, the aim of this technique was to attract more ‘prey’. Canada is one of the countries where these 2 projects really took hold. Many complaints have been received. According to ICI Toronto, a certain Richard Engoulou, who lives in Toronto, has admitted to organising meetings between investors and Emile Parfait Simb’s company GIT. As for OneCoin, Simon Le was one of its promoters in Canada.

• Use of offshore companies: The many advantages of using offshore companies are well known. The general aim is to optimise revenues. The CEOs of these 2 projects had several offshore companies (according to Wikipedia, Dubai-based OneCoin Ltd and Global Investment Trading, whose head office was transferred to Dubai in 2020, are just a few examples), which were used to develop the said projects via offshore bank accounts. Trends-Tendances reports on this in the article “Les méthodes douteuses d’un ex-député” (“The dubious methods of an ex-MP”).

• Possibility of converting cryptos into fiat currency: For the first investors, the promoters of the 2 projects allowed, with specific limitations, the tokens of their parent cryptocurrencies (LimoCoin or LmcSwap and OneCoin) to be exchanged for fiat currency.

These many similarities underline the need for constant vigilance on the part of investors and regulators. This is to detect and avoid such fraudulent schemes, which exploit investor confidence for illegitimate personal gain.

Finally, both cases caused massive financial losses for many investors. People who had placed their trust and money in Liyeplimal and Onecoin lost considerable amounts of money. This had an impact on their financial situation and also tarnished the reputation of the crypto ecosystem.

The key players in the Liyeplimal scam

When looking at scams such as Liyeplimal and Onecoin, it is important to understand who the key players behind these scandals are. In the case of Liyeplimal, several individuals and entities were involved in running the scam.

One of the key players was the founder of Liyeplimal, who set up the Ponzi scheme and attracted many investors. He was supported by a marketing and sales team that used aggressive tactics to recruit new investors.

In addition, there were also internal accomplices who manipulated the data to give the appearance of a successful performance.

These key players were responsible for spreading the Liyeplimal scam and exploiting investor confidence. Their actions had serious consequences for many people who lost their money in the scam.

The consequences of the scam

The consequences of Ponzi schemes like Liyeplimal are not limited to the financial losses suffered by investors.

Other examples include:

• The impact on investor confidence in the cryptocurrency sector

• Increased difficulty for investors to distinguish legitimate opportunities from scams

• Legal action against the players involved in these conspiracies

• Tougher crypto laws by regulators

• Scenes of violence that are sometimes surreal. By way of example, we can cite the one described by the camerounweb.com media in the premises of Emile Parfait SIMB in Cameroon. In the case of Liyeplimal, investigations have been opened and legal action has been taken against those responsible for this skulduggery. This demonstrates the importance of prosecuting the perpetrators of this fraud and holding them accountable for their actions.

Lessons to be learned from Ponzi schemes

The Liyeplimal and Onecoin operations remind us of the importance of due diligence when it comes to investing in cryptocurrencies. Here are some lessons from these scandals to spot potential Ponzi schemes:

• Do your research: Before investing in a crypto-currency or investment platform, take the time to do thorough research. Check the background of the founders, read reviews from other investors and make sure you understand how the project works.

• Beware of returns that are too good to be true: If a project promises extremely high returns quickly, this can be a warning sign. Legitimate investments always involve a degree of risk, and realistic returns are usually more modest.

• Be aware of aggressive marketing tactics: Scams like Liyeplimal and Onecoin often use offensive marketing techniques to attract new investors. Be wary of exaggerated promises and pompous events that give the appearance of legitimacy. In general, it takes a lot more than fine words to earn large sums of money.

Legal action and investigations against the Liyeplimal promoters

When the Liyeplimal scam was uncovered, investigations were launched and legal action was taken against those responsible. The relevant authorities worked to prosecute the perpetrators of the scam and bring justice to the investors who lost their money.

Legal action and investigations are essential to deter future crooks from engaging in fraudulent activities. They also send a clear message to investors that the authorities are taking these cases seriously and are working to protect their interests.

These actions and surveys include the following:

1. Action by Cameroon’s finance minister: The media outlet EcoMatin writes that, due to a lack of authorisation, Cameroon’s finance minister is calling on Global Investment Trading and Global Crypto Currencies Trading to “immediately cease their illegal fundraising operations” and to “stop any form of publication, communication or advertising in connection with these investments in crypto assets”.

2. Petition drawn up for the project’s investors and French-speaking Binancians: It was initiated by John BRI on 25/02/2022 on the change.org website. Its aim was to alert, denounce and demand the arrest of the project’s CEO.

3. Complaint: According to the magazine Jeune Afrique, in its article “Cameroun: Plaintes en cascade contre Emile Parfait Simb” (Cameroon: Cascading complaints against Emile Parfait Simb) I quote “The entrepreneur who made his fortune in cryptocurrencies is now being prosecuted in the United States, Canada and soon in France. Beac executives, a prominent MP, a public prosecutor… Several prominent figures are also targeted.”.

4. Complaint: According to the magazine Jeune Afrique, in its article “Cameroun: Plaintes en cascade contre Emile Parfait Simb” (Cameroon: Cascading complaints against Emile Parfait Simb) I quote “The entrepreneur who made his fortune in cryptocurrencies is now being prosecuted in the United States, Canada and soon in France. Beac executives, a prominent MP, a public prosecutor… Several prominent figures are also targeted.”.

The general impact on the cryptocurrency sector

The Liyeplimal and Onecoin cases have had a significant impact on the crypto-currency sector. They have tarnished the reputation of the sector by making headlines and attracting the attention of regulators. In particular, this has led to:

1. An increase in investor mistrust

2. Greater caution when it comes to investing in cryptocurrencies

3. Tougher laws at both local and regional level in the crypto ecosystem

However, it’s important to remember that not all cryptocurrencies are blurbs. There are plenty of legitimate opportunities in this sector, but it’s crucial for investors to exercise a great deal of caution when making investment decisions.

Conclusion 

The Liyeplimal and Onecoin scams are powerful reminders of the importance of due diligence when it comes to investing in crypto-currencies. These sophisticated scams caused massive financial losses and damaged the reputation of the crypto-currency industry.

“Poverty is over” somehow means the beginning of continuous gain. However, reading the above, the project’s investors have become poorer rather than anything else. The slogan has therefore been transformed into “Poverty is finally here”.

It is essential to carry out thorough research, understand how the schemes work and be cautious of returns that are too good to be true. By following these principles, investors can significantly reduce the risk of falling victim to a Ponzi scheme.

At the end of the day, it’s essential to remember that due diligence is the key to making informed investment decisions and protecting your financial interests. Be vigilant and don’t let the promise of high returns blind you.

Liyeplimal and Investment Risk

Liyeplimal quickly gained a sinister reputation as one of the biggest frauds in cryptocurrency history, severely impacting the African continent. Under the alleged leadership of Emile Parfait Simb, Liyeplimal adopted a Ponzi-like structure, promising unrealistic returns to investors. This strategy, reminiscent of the OneCoin scandal, left many investors with significant financial losses.

The platform presented itself as a crypto-currency investment opportunity with high and fast returns. However, it was based on a pyramid scheme, using funds from new investors to pay returns to old investors, creating an illusion of profitability.

The Liyeplimal project also used aggressive marketing tactics to attract new investors, highlighting striking similarities with the OneCoin affair. Both scams used promises of exceptional returns, continuous recruitment strategies, and eventually led to massive financial losses.

The lessons learned from these frauds highlight the importance of due diligence when investing in cryptocurrencies. Investors need to carry out thorough research, remain wary of returns that are too high and be aware of the signs of a scam. The consequences of these frauds, both on investor confidence and industry regulations, underline the importance of rigorous oversight.

While legal action is being taken against those responsible for Liyeplimal, it is crucial that investors learn from these experiences to avoid future scams and protect their investments in the crypto ecosystem. Vigilance and knowledge remain the best bulwarks against such frauds.