In the world of digital assets, the allure of quick riches has driven many towards investing in Non-Fungible Tokens (NFTs). However, not all that glitters is gold, as the investors of CashFlowNFT discovered the hard way. The deceptive scheme, spearheaded by Micah Theard, a notorious figure in the MLM scam world, and his associates, concocted a plan that seemed too good to be true – and it was.
CashFlowNFT marketed itself as a venture that revolved around NFTs, enticing investors with promises of passive income generated from real estate transactions. This scheme urged people to invest $5,000 or $25,000 in NFTs, with the illusion of generating passive revenue by partnering with supposed revenue-yielding companies like Miracle Cash & More, a crypto wallet company.
The operation took a darker turn when CashFlowNFT acquired Batched, a platform known for its “validation node” investment scheme. This acquisition was shrouded in mystery, with the investors being kept in the dark about the new company taking over. This transition was allegedly spearheaded by Theard and his co-conspirator Hakan Törehan, with the former being linked to previous high-profile scams like OneCoin.
Now, how does this tale of digital deceit tie into the Howey Test? The Howey Test is a legal litmus test used to determine whether a financial arrangement constitutes an investment contract, thus falling under the regulatory purview of the Securities and Exchange Commission (SEC). The test comprises three elements: an investment of money, in a common enterprise, with the expectation of profit derived from the efforts of others. CashFlow NFT’s scheme checks all these boxes. Investors were lured to put their money into NFTs, forming a common enterprise, with the anticipation of profits generated not from their efforts, but from the purported real estate transactions and partnerships the scheme claimed to have established. However, as reality set in, the only cash flow was from the pockets of hopeful investors into the coffers of Theard and his accomplices.
The last nail on the coffin was hammered in when an investigative team in the US uncovered that the licensing for the company to operate as a virtual wallet provider in the UK has been revoked. This already resulted in the suspension of their app on the Apple Store, but has yet to affect their Google Play app. Users can test this by simply trying to download the app from Apple. Miracle Cash&More gets its licensing to its affiliated company Ofinans.
The downfall of CashFlow NFT serves as a stark reminder to tread cautiously in the burgeoning world of digital assets. The mirage of easy riches often conceals a quagmire of financial ruin, and as the adage goes, if it sounds too good to be true, it probably is.
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