Venezuelan: Mastermind of Financial Fraud of Fxbitcapital in Florida, is in Association with ByDzyne

In a shocking revelation, Gustavo Enrique Vera Espinoza, along with his collaborators, orchestrated a financial fraud through Fxbitcapital that has devastated over 3,000 individuals. This fraudulent scheme involved close collaboration with members of ByDzyne, a multilevel marketing company. The key figures in this scam, predominantly Venezuelans, include Samer Luis Yorde Erem, his wife Paula Landino, the brothers Herson Andrés La Riva and Herson La Riva, Unai Mazeika, Raúl Andrés Mora Granadillo, Rafael A. García Núñez, Viviana Portillo, Jessica Salvatierra, Isabela Mendes, and Karina Chacón Ramírez. These individuals utilized their networks to promote Fxbitcapital and earned commissions for their referrals.

The Fxbitcapital Ponzi Scheme

Founded by Venezuelans Gustavo Enrique Vera Espinoza and the twin brothers Andrés Eduardo Vera García and Alejandro Enrique Vera García, Fxbitcapital operated as a Ponzi scheme. The company promised high returns on investments but, in reality, paid returns to earlier investors using the capital from new investors. No legitimate investment activities were conducted, leading to the scheme's inevitable collapse in 2023, resulting in substantial financial losses for its investors.

On WikiFX, this broker has been given a pretty low score of 1.48/10. And we found that this broker is unregulated.

Continued Fraudulent Activities and Call for Legal Action

Alarmingly, despite the collapse of Fxbitcapital, ByDzyne associates appear to continue engaging in similar fraudulent activities, possibly setting up new scams. A person familiar with the matter commented, “Federal and state authorities and regulators in Florida must thoroughly investigate these fraud allegations and take necessary legal actions to protect consumers from falling into such schemes in the future. The individuals involved in these scams must be held accountable to prevent further harm to unsuspecting people seeking legitimate investment opportunities.”

Victim Testimonies

Victims of the Fxbitcapital scam have begun to share their harrowing experiences. Juan, one such victim, recounted how he was persuaded by Aaron Ruiz Hernández, an acquaintance, to invest in the “Pibgrabber” strategy, which promised profits through Forex transactions purportedly conducted by Fxbitcapital. After investing $1,000 initially and subsequently $6,000, Juan saw his funds reflected in a Metatrader mirror account. However, when he attempted to withdraw his profits, he encountered endless excuses about audits and fund retention, with promised payments never materializing. Since December 2022, Juan has been unable to recover his investment or profits. The leaders identified by Juan include Alejandro Vera, Andrés Vera, and Gustavo Vera, who operated from a “ghost office” in Miami, FL.

Fraudulent Strategies and Offshore Registrations

Fxbitcapital took advantage of lax regulations by registering in offshore jurisdictions. The company was registered on January 13, 2020, under number 25735 with the Financial Services Authority of Saint Vincent and the Grenadines through the agent Wilfred Services Ltd. Despite an active registration, the company provided a contact number belonging to a hardware store in Venezuela, highlighting its deceptive nature. Additionally, Fxbitcapital registered under license T2023276 with the International Services Authority of Mohéli in the Union of Comoros on May 19, 2023, is likely to evade US financial regulations.

Network of Partners and Linked Companies

The involvement of ByDzyne affiliates in promoting Fxbitcapital suggests that these individuals were not earning expected profits from ByDzyne and sought additional income through fraudulent means. This practice is not uncommon among affiliates of multilevel marketing companies who exploit their networks to push other businesses, sometimes resulting in fraudulent financial schemes.

Andrés Eduardo Vera García, a principal figure in Fxbitcapital, is associated with several companies in Miami, including UNIT-Y, Digital Republic International LLC, MoneyClip App Payment Gateway, and Bitbank Forex Brokerage. Before entering the digital finance world, Andrés had a career as a street graffiti artist.

What is ByDzyne and Why is it Controversial？

ByDzyne, founded in 2019, operates in various product and service niches and has no direct relationship with Fxbitcapital. The company, headquartered in Wyoming, USA, claims to have offices in multiple countries, including Colombia, Ecuador, Thailand, Japan, the Philippines, South Korea, and India. ByDzyne's co-founders include Nat and Chanida Puranaputra, Sophia Wong, Henry Marsh, and Chad and Nattida Chong. Despite its global presence, ByDzyne has faced scrutiny due to the fraudulent activities of some of its affiliates.

Conclusion

The Fxbitcapital scam, masterminded by Gustavo Enrique Vera Espinoza and facilitated by ByDzyne affiliates, highlights the pervasive threat of financial fraud within multilevel marketing networks. The victims' testimonies and the dubious offshore registrations underscore the need for stringent regulatory oversight and legal action against the perpetrators to protect potential investors from similar scams in the future.