Ladies and Gentlemen, the following message is meant for both Bitclub Network members and the “would be” Bitclub Network victims. Just to make an introduction, there is an entity that was introduced into Kenya in 2015 called Bitclub Network that purports to be mining bitcoin and currently has a membership nearing 3000 or more in Kenya and close to a million worldwide. It applies an MLM model and promises passive income even without referring anyone into the business. This is meant to be achieved by earning daily mining earnings that are meant to be a return to your investment. One invests about Ksh.70,000/= per share. The share is expected to mine for 1000 days, after which it becomes obsolete. This purchase of a share yields daily earnings paid in bitcoin. However, as at the present, the mining earnings are approximately Ksh 80/=. Therefore, if you divide 70,000/= by 80/=, it will take you 875 days to recoup your money. This is equivalent to 2 years, 5 months. Is that a worthwhile investment? Definitely not! Therefore, the only way one can actually earn is by referrals, which puts Bitclub Network in the category of scams.
The question we ask ourselves is: how is it possible that with such meagre earnings, so many people have fallen for it? The answer is very simple. The members apply deception to rope you in. These earnings are low because they actually decrease every single day from the day you invest. So how do the Bitclub members deceive you? By showing you their historical earnings and earnings from other shares that have been repurchased over a period of time. They will show you a figure that reads “last 30 day earnings” and then calculate an average that may indicate a figure as high as $3 per day. What they don’t show you are the present daily earnings. Remember, the daily earnings fall every day and to make matters worse, you start earning after 30 days. By then the earnings are significantly lower and woe unto you if the bitcoin price has come down. The moment this happens, your next instinct is to call your upline who introduced you into the business. Here, two things will happen: either they will pick your call and tell you that they never promised a fixed income and that if you are not happy, you can contact the “company” Bitclub Network, with no known headquarters to ask for “your machines” back (machines that don’t exist at the price of your investment) or they will completely ignore your calls and your texts because they are already working on their next victim. There are Whatsapp and Telegram groups for the members in which dissent is not tolerated. Any questions raised about dissatisfaction with the level of earnings is met with stiff resistance by the top earners. They are ordered to shut up on the side. If one persists, they are removed from the group, which is what I went through. They have even went to the extent of threatening anyone who is found to be engaging in similar activities with another entity shall have their accounts closed and that they will lose their investments. Their mode of operation is that once you invest in them, they own you.
This art of deception and intimidation of members has been perfected by two of the top Bitclub Network earners: Mr.Raymond Kaptich and Miss Aerlene Mugambi. These are the high priests of the Bitclub scam in Kenya. These two characters have put Bitclub Members under a vice-like grip and have become the law unto themselves and whatever they say is the gospel truth for the poor members who are terrified to say anything that they don’t approve of. I am still a member and was thrown out last year in December because of asking too many questions. I was thrown out because I was providing too much proof to actually confirm that we are indeed, unknowingly, in a scam. Bitclub Network has been feeding us with a lot of false promises regarding improvement in earnings and this was what provoked these questions that were quickly quashed. Any entity having something to hide from their members and constantly providing false promises is definitely a scam as I shall demonstrate later in this article.
I want to divide this article into two parts. The first part will be exclusively for my fellow Bitclub Network members and it illustrates how we are being taken for a ride. This is the information I tried to post in your groups but was brought down in less than 15 minutes. This part comprises the news updates that only the Bitclub Members are familiar with. The second part is proof of Bitclub as a scam and this is for both Bitclub Members to know that unfortunately, we were scammed and also to educate those who don’t know Bitclub Network or know but haven’t joined so that they can make an informed decision. It will further give us both tips on how to judge if an MLM is legit or not.
To the Bitclub members, below is a step by step analysis of the News Updates that we have been seeing posted in our websites. News that was meant to assure us that a lot was being done to address our falling earnings but unfortunately, it is just a chronology of very blatant lies that gives a clear indication that the person who wrote these articles either has a multiple personality disorder or is just intellectually challenged. Here we go:
- On the 30th of October he told us: “Right now we have A LOT of new equipment that has already been paid for and is just waiting to be deployed.” I would understand this to mean that the equipment is available and actually physically ready to be deployed.
- In the same update, he goes ahead and gives specific hashing powers and the months of deployment and again emphasizes that all the power has been paid for and just awaiting deployment. Again, this would be interpreted as an assurance that by mid-November, the deployment will have begun as per his promise and this , off course is with the full knowledge that the machines are ready and considering logistics, it should take a fortnight to have them in Iceland, right?
- Remember these deployments were to begin in mid-November, in phases, running all the way to 31st January 2018.
- On the 9th of November, he says: “We continue to expand as fast as we can and you may have heard the announcement we made in Dubai about having a total of 1,156 PH already paid for and in the pipeline. This power will be turned on from now until the end of January.” Again, this is the third time he has emphasized about availability of the machines for deployment. In fact, by saying “from now,” it can only mean that they have indeed arrived. Right? Notice the big discrepancy between 1,156PH against the 480PH earlier promised. He’s telling us that things are so good that he has actually paid for more than double what he had promised us and they are actually in his possession. Very nice music to our ears.
- On another note, in the same update, he tells us the following: “Also, we have a few surprises that we will announce in December that will give everyone more opportunities to earn. Somehow this opportunity just keeps getting better and we are doing everything we can to keep up with your demand!” Actually, there were indeed two surprises: the first being the BCN site going down for a good two weeks and the second one, to add salt to injury, there was a significant 13% drop in our mining earnings between 31st December and 1st January 2018. This must have been Russ’ New Years gift for BCN members.
- Let me also mention that around the same month of December, he deceived us about club coin by creating a lot of hype by telling us how good it was to buy because it was to be a competitior to big pay platforms like paypal and that he was signing up merchants to this end. The last thing he communicated to us is that virtual staking for the club coin will not be done anymore, thus dealing club coin a fatal blow. Do you hear him talking about it anymore? No! Why? It was another scheme of Russ to raise money from his gullible members through false promises and it was also a diversionary tactic from the hot topic: mining earnings. Further, Hannah, Russ’ accomplice in this whole episode had promised to come to explain to us about mining earnings but instead sent her husband to give us some irrelevant talk about crypto currencies, steering completely clear of what they had told us his mission was about.
- We are now on the 30th of January 2018. A new update comes up. In the meantime, the deployment that was promised seems now a pipe dream. Nothing has been done and earnings continue falling. Members start getting restless and any inquiries about earnings are constantly thwarted by our able “leader”, Aerlene. Russ now tells us: “There have been some delays in getting our latest rounds of power. Mainly because of the Chinese new year and some other supply chain issues that have been causing unexpected delays.” This is amazing!!!!!! The machines were there on the 9th of November but now, suddenly, they are not there. Russ must be a serious magician: Now you see it, now you don’t. This is a clear indication that either he has completely forgotten what he told us on the 9th of November 2017 or he thinks we have such short memories like warthogs that we cannot remember things that we were told a few months ago, or better still, we are too stupid to go to history and fish out his stories. Ladies & gentlemen, this is where now you can clearly see that Russ is actually insulting our intelligence.
- In the same update of the 30th of January 2018, he tells us: “The good news is we should see the total power nearly double to around 800 PH within the next 7 days and we have a lot more power being added in February. To date we have already paid for 2,037 PH in total and we are placing another order at the end of this month for even more.” This obviously means that by the 6th of February, BCN should be hashing at 800PH. Remember, in the opening paragraph as per the previous point, the machines are not available but in the same update, the next paragraph, he tells us that we should have the additional 800PH in the next 7 days! Anyone reading this can clearly see that the lies are now getting out of hand.
- He goes ahead and blames Bitmain & Bitfury for these delays despite his connections, the delay being occasioned by very high demand that both of these suppliers are unable to meet. He further tells us: “…..it’s just a crazy market right now and all we can do is keep buying more and adding power when it becomes available.” I have a very big problem with this statement: Who, in their right mind continues paying for items that are not being delivered? Remember, as per the first update dated 30th October, he insinuated that he had made payments during the six months preceding October, meaning that he had paid for the equipment in April and now it is ready for deployment. Here is his statement: “Right now we have A LOT of new equipment that has already been paid for and is just waiting to be deployed. The market has changed drastically in the past 6 months and the deployment time is now a lot further out than it was due to high demand.” And now, he wants us to believe that he is still paying.
- He adds: “We should see all of this power hit our pool between now and April, which will give each share a nice boost! Again, these should mean that the equipment is right there with him because he was talking about “now”. We are at the end of February. Has anyone seen any increase in hashing power & subsequent increase in earnings? NO!!!!!
- Let’s now look at the most recent news dated 24th February 2018. It starts as follows: “As you have probably noticed the power in our Bitcoin Mining Pool has not increased during the past few months as we intended. We should have seen over 1,000 PH being powered on but we ran into some delays.” He passes the buck again to Bitmain & Bitfury for the delays. First of all, on two occasions in previous updates, he has told us that the deployment starts “NOW”, meaning that he has the equipment. Now he tells us that there are delays and the equipment has not yet been delivered because of Bitmain & Bitfury. It is a case of now you see it, now you don’t. This is Russ’ magical skills at their best. Worse still, he tells us this: “We will have equipment deployed in Norway, Canada, Georgia, Iceland, and soon to be Montana (USA).” How can he be talking of new mining locations while at the same time telling us that mining equipment is unavailable? Does it really make sense?” Does he really expect us to believe that he will acquire those new locations, pay rent for idle capacity while playing Tom & Jerry games with Bitmain & Bitfury? Do you people actually believe that Bitmain and Bitfury are that unprofessional that they can be playing such games? Get real, Russ!
- Again, his lies are relentless and now they seem to be reaching fever pitch. He now gets very creative by telling us this: “The Good News… Due to these delays we have been given a large compensation package for the missing power and we are passing this comp to all members in the pool. You will receive a nice one time bump payment on February 28th as we build the comp into each share.” Well, 28th of November came and the drop was even bigger than the previous ones.
- The following now puts the icing on his cake of lies: “All the above power has already been purchased and it’s currently in the production cycle process…..” Really, Russ!!! Now he tells us that after paying last year in April and on two occasions using the term “NOW” when telling us when deployment is to commence, we are now back in production of the Ant-Miners. Wow!!! This is mind boggling and truly an amazing journey of deception that Russ has taken us through.
- Finally, on the 30th of Jan, he had told us that all the new deployment shall be done by end of May but in the 24th February, the schedule shows July as the final month of deployment
Before I sat down to write this, I had done an extensive analysis of what is happening with BCN, especially the deceptive updates, behavior of our leaders and overall the mood of BCN members. If anyone needs further clarification, feel free to call me on 0722818883. We cannot continue letting some few rotten eggs tell us what to do and what not to do because they think they have some sort of power that only God knows where they got it from!
After careful research and watching BCN behavior, and by extension, the behavior of our “leaders,” I can now authoritatively and without hesitation, declare BCN very clever scam and I shall demonstrate this as follows (actually these are the telltale signs of a scam and BCN fits in very well):
- First and foremost, there is actually no evidence of the source of income from which we are paid. There are claims about a mining facility in Iceland but whenever presentations are done, the video of the mining facility reveals that the mining facility is owned by Genesis Mining. Why don’t we see any mining facility belonging to BCN? When Raymond went to Iceland, he had a video shot of him telling us that behind him is the BCN mining facility, which to me was unsatisfactory. What got me curious is that he went ahead and told us that there are 10,000 machines in there. My question is, and applying simple common sense, How can 10,000 machines cater for close to 1 million members? With the growth of membership, BCN should actually be having more than 6 mining farms. Further, when Raymond came to Kenya and in his first address to the members and of course expecting the big question of why we never got to see the interior of the mining farm, he was very quick to tell us that cameras were not allowed in the mining farm. This is utter NONSENSE! There are many companies all over the internet who proudly show viewers the interior of their mining farms. Therefore, I’m willing to bet that it was not a BCN mining farm and the reason they never showed us the interior is because genuine mining farms normally brand the frames on which the machines sit on plus any pillars in the building. If any video of the interior was shot, we would have seen a different name. Furthermore, the only videos that we see in the BCN website that are supposed to show us the BCN “mining facility”, are for a duration of very few seconds and with BCN banners hanging loosely on the frames holding the machines. Anyone can take a banner to any mining facility and shoot a video. Have you ever asked yourselves why only very senior members of BCN are allowed to go and see the farms? It’s because they are so deep into it that even if they go there and find that it is all a sham, they cannot come back and tell us that we are being fooled because they have a lot to lose. They therefore continue living that lie and roping in more people just so that they can continue earning an income to the detriment of others.
- Secondly, BCN does not have a physical address. Scams do not provide any physical address and if they do, it’s normally a virtual office. Have you asked yourselves how an entity with membership numbers approaching a million does not have a physical address? The answer is very simple: There is no such company called Bitclub Network. All the names we see on the blockchain pie chart are actually mining pools. Mining pools are just as the name suggests, made up of pools of miners. Therefore, BCN is a mining pool, of which Russ is part of among other miners. He is not as big as he makes us believe and that is why he doesn’t own any mining facilty. He does not own Bitclub Network! Do you see the distinction? If you can’t, feel free to contact me and I will explain to you.
- BCN has no registration certificate. Any genuine company should be able to produce a registration certificate as proof of existence. They are therefore not registered anywhere because, as I said, there is no company called Bitclub Network.
- False promises. As clearly demonstrated on their news updates, Bitclub Network has constantly provided us with false promises. As per the news updates, all the promises they have made from way back in October 2017 remain unfulfilled.That is another major telltale sign of a scam.
- Fake companies do not give you details of their management team because there are either none or they have dark pasts that are well known on the internet. Russ keeps on telling us that there are some other 3 founders who up to now, he has never disclosed who they are.
- In cloud mining, if any entity’s compensation plan is designed in such a way that the only way one can make money is exclusively by referrals but no meaningful passive income, then this company is a scam. BCN cheated us that one can make money mining passively. This was only true provided the BTC kept on rising but now we can see that it was all a façade, given that BTC has been trading within very narrow ranges. In the BCN compensation plan, with an investment of 70K, daily earnings are at $0.83 per day. With such earnings, you will never recover your money, even after 1000 days of mining.
- Finally, let’s not forget that Russ has a criminal record. This doesn’t do him any favours. It is therefore no surprise that he’s doing these things. He has basically brought out the criminal in him.
NB: For those who are not members of Bitclub Network, I’ve been referring to a name Russ who is the face of Bitclub Network. His full names are Russ Medlin. Follow this link that will give you an insight about Russ the criminal and Bitclub Network the scam:
The question now begs: How did Russ fool the world into his scheme? First, he picked the name Bitclub Network & made us believe that it is a real company but the clincher is when he uses the narrative that they are registered on the block chain platform. Therefore he goes ahead and tells us that any name not appearing on the block chain pie chart is not legit. He capitalized on our ignorance and that is why we believed him. Just to give an example and prove that these were all lies, Genesis Mining is a legit mining company but it does not appear on the pie chart. The reason you don’t see Genesis Mining on the pie chart is because they are miners and not a mining pool. They mine in those pools appearing in the pie chart. This is what we didn’t know.
By the way, if you really want to know where BCN is ranked in the world of cloud mining companies, just follow this link: https://netbusinessrating.com/en/categories_list . Under crypto currencies, click on cloud mining websites. There you will find some sites and in total, they have ranked 56 websites. The number one is Genesis Mining with the status “legit”. You will see others with the status “New”, “Promising”, “Scam” and “Doubtful”. You will find BCN on page 6 at no.51 and it is considered as “Doubtful”. This is very worrying considering that BCN has been in existence for almost 5 years now. Given this ranking, would anyone in their right mind invest in BCN? NO!
In conclusion, ladies and gentlemen, for those of us who are members, now we know what we got ourselves into and my advice to my fellow members is don’t recruit other people so that you can make money. This is a sure way of destroying your friendships and reputations. For those who are lucky not to have joined, if anyone approaches you with an idea of investing in Bitclub Network, please run for the hills!
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