Turkish Regulator Finds Kairos Technologies is a Pyramid Scheme
Is this true?
In July of 2016, the Turkish Customs and Trade Ministry launched an investigation into Kairos Technologies.
Kairos Technologies News
The goal of the investigation was to establish whether or not Kairos Technologies was a pyramid scheme.
As with most countries, the operation and promotion of pyramid schemes is illegal.
In a press-release issued, the Customs and Trade Ministry announced the results of their investigation.
As per the Customs and Trade Ministry’s findings, in Kairos Technologies’ compensation plan:
“The reward for bringing new members to the system is kept at a higher level than rental income, and members are indirectly encouraged to gain new members to the system rather than to obtain rental income from the product packages they buy.”
For those unfamiliar with Kairos Technologies’ business model, the business combines member recruitment with a Ponzi investment (the cloud services side of the business).
As per Turkish law:
“A typical pyramid system is formed as a system of expectation of earnings which is very difficult to realize due to the fact that the income of those who get more, the income of the members of the lower arms of the system is transferred to the members at the upper levels of the system.”
Pyramid scheme regulation is a criminal matter in Turkey, with the Customs and Trade Ministry press release proposing that the matter has been forwarded to the Public Prosecutor’s Office.
Endorsement of Kairos Technologies in Turkey is illegal, and those found to be doing so are at risk of criminal prosecution.
At the time of this publication, Alexa estimates that Turkey is the biggest source of traffic to the Kairos Technologies website (26%).
On top of the ban in Turkey, last week Austria’s FMA issued a warning against a shell company Kairos Technologies was using to pay members with.