5 min read
Treasure NFT, a platform claiming to offer AI-driven NFT trading with high returns, has been exposed as a fraudulent scheme. The platform’s largest user base is in Pakistan, particularly in tribal areas, Balochistan, and Sindh, where it has allegedly targeted individuals from economically disadvantaged and less-educated communities.
Critical evidence exposes Treasure NFT’s deceptive practices, including the platform’s fake website registration in Tempe, Arizona, the use of fabricated LinkedIn profiles, and a referral-based recruitment strategy designed to exploit unsuspecting investors.
Treasure NFT presents itself as a decentralised marketplace that utilises artificial intelligence to generate high profits. The platform advertises the following claims:
- Daily returns ranging from 4.3% to 6.8%
- Monthly profits of up to 30%
- A referral-based incentive program
However, financial experts warn that these figures are mathematically unsustainable and bear the characteristics of a Ponzi scheme, where returns for early investors are funded by new participants. Once new investments slow, the system inevitably collapses, leaving the majority of users at a financial loss.
Key Indicators of Fraud
Unrealistic Profit Guarantees
Legitimate NFT investments do not offer guaranteed profits, particularly at the levels claimed by Treasure NFT. Such high returns require a continuous influx of new investors, a common sign of financial fraud.
Lack of Transparency
The platform provides no verifiable information regarding its founders, development team, or operational structure. The website authentication reveals Treasure NFT has its base of operations in Tempe, Arizona, United States. The actual address shown on Google Maps leads to a Russian music academy instead of Treasure NFT’s headquarters, thus supporting suspicions about the company’s false location. The founder remains unknown and does not appear in Google searches, further deepening concerns about its credibility.
Referral-Based Revenue Model
Treasure NFT obtains most of its revenue by adding new users to the platform instead of handling genuine NFT transactions. Revenue production at Treasure NFT works similarly to a fraudulent pyramid scheme because the company depends on new member enrolments to succeed rather than selling actual digital assets.
Fake Online Presence
The company’s legitimate online presence is compromised because investigators confirm Treasure NFT’s LinkedIn page displays fake information and uses fictional user profiles. The online testimonials posted on Treasure NFT seem fabricated because they typically come from brand new accounts that were created to submit the reviews.
Withdrawal Restrictions and Frozen Accounts
Multiple user complaints indicate that the platform reveals major difficulties when users try to withdraw their funds. Reports indicate that accounts are being frozen without explanation, withdrawal requests are rejected, and customer enquiries regarding these issues go unanswered.
Unresponsive Customer Support
A hallmark of fraudulent platforms is a lack of customer assistance. Several Treasure NFT users have reported that their concerns regarding withdrawals and account access are either ignored or dismissed without resolution.
Regulatory and Legal Concerns
Treasure NFT claims to have a Money Services Business license from FinCEN, yet this registration does not prove the validity of its actual business operations. The Indian government and West Bengal law enforcement agencies, together with regulatory authorities, investigate Treasure NFT for possible fraudulent behaviour.
How does the scam operate?
Treasure NFT follows a typical Ponzi scheme structure:
- Investors deposit funds with the expectation of high returns.
- Initial investors may receive small payouts to create an illusion of legitimacy.
- The platform aggressively promotes its referral program to ensure a continuous influx of new participants.
- As recruitment declines, withdrawal requests are delayed or denied.
- The scheme collapses, leaving most investors with significant financial losses.
There is insufficient proof to demonstrate Treasure NFT conducts actual NFT trading or generates liquidity on its platform despite its advertised status as an NFT trading platform. Financial fraud actually uses NFTs as an excuse to operate behind a fraudulent financial scheme.
Preventative Measures Against NFT Scams
Financial experts advise investors to exercise caution and conduct thorough due diligence before engaging with NFT or cryptocurrency platforms. Recommended precautions include:
- Verifying platform legitimacy: Conduct background checks on the company’s founders, operations, and regulatory status.
- Avoiding guaranteed profit schemes: Be sceptical of investment opportunities that promise fixed, high returns with minimal risk.
- Testing withdrawal processes: Deposit small amounts initially and attempt withdrawals before making larger investments.
- Steering clear of referral-based investments: authentic NFT marketplaces do not rely on recruitment for revenue generation.
- Using established platforms: Engage only with reputable, well-documented NFT marketplaces with a proven track record.
Treasure NFT exhibits all the warning signs of a Ponzi scheme, utilising deceptive tactics to exploit investors. The questions about the platform’s authenticity become more intense because of unreasonably high profit promises and limited withdrawals and its reliance on referral systems for revenue generation.
As the NFT industry develops further, investors must exercise higher vigilance due to scams like Treasure NFT. It is important for investors to rely exclusively on platforms that maintain transparency and proper regulation to protect their finances from loss and safeguard their assets.
