A Broker with "Story" - Ponzi Scheme Herzen Changes its Disguises Again and Again

The investor frankly said that the Ponzi scheme like Hezhen International Herzen uses Multilevel direct selling, robbing Peter to pay Paul - using the money of the new members to pay the old members. In this framework, the essence of which is a Ponzi scheme, or what we often call a pyramid scheme fraud.

The Brand - Herzen

The investigation has found that Herzen is a platform with a “story”. Its domain name herzen-intcare.com was established on August 4, 2022, only 4 months ago.

The history of Herzen can be traced back to its “former domain herzen-int.com”, which was created on December 29, 2021, and officially launched in January of that year. But it didn't take long for the site to be exposed as an incarnation of the exposed Ponzi scheme Prima. In the early days, even the company's introduction and customer service WeChat IDs were identical, and a stupid joke that it forgot to change the company's name in the official document Disclaimer was made. At last, the domain was abandoned after less than a year of use, and now automatically jumps to herzen-intcare.com.

After replacing the new domain herzen-intcare.com, the group simply removed all information related to the platform's regulatory information, terms & conditions, privacy policy, regulatory documents, etc.

According to its lecture to customers, the platform advertised that it holds a license from Labuan Financial Services Authority (Labuan FSA), and the company name is AIFC TECHNOLOGY LIMITED, which provides financial derivatives such as CFD, precious metals, crude oil, indices, and cryptocurrencies.

We do can find a company named AIFC Technology Ltd, but the approved domain was neither herzen-intcare.com nor herzen-int.com, which means Herzen is not regulated by Labuan FSA.

Two Logos

What is particularly obvious is that the logos under different language modes on Herzen's website are different.

Herzen also claims to have European Credit Investment Bank (ECIB) to provide fund custody services, but ECIB issued a warning on its official website stating that it has no relationship with Herzen or Prima.

Three Platforms - From Prima to AIFC and Herzen

What investors need to note is that the AIFC platform's official website was registered on September 15, 2021, and the very first registrar was Prima in Malaysia. And it was only after it was discovered by netizens on September 30, 2021, that the registrar changed its name to AIFC Technology Ltd. It is obvious that from Prima to AIFC and Herzen, all these fraudulent platforms are created by the same group of people, old wine in a new bottle.

Additionally, Herzen was blacklisted by the Malaysian Securities Commission (SC) for providing financial derivatives investment services without authorization.

All in all, Herzen is definitely a scam.

WikiFX Reminds You

WikiFX reminds that Herzen is not only a Ponzi scheme for Malaysians but many victims in China and Southeast Asia show up one after another.

Identifying Ponzi schemes is not difficult. If you want to participate in an investment project with high returns, and there are multiple levels of the market commission system, it can be sure that the project is a Ponzi scheme. The consequence will not only be losing money but also hurting your interpersonal relationships!