Coinspace Scam

Update: Coinspace scam halted in Italy.

Unregulated digital currencies are the perfect foundation to build a Ponzi scheme on.  New confusing ways to store money are a great way to bilk new investors that want to cash in on the next Bitcoin.  With the recent raid of UFUN and the shutdown of GemCoin as highlights, digital currencies have become a common component of online scams. My subscribers have requested I take a look into Coinspace. Here is what I have found.

Coinspace Scam Claims

Coinspace is a unique business opportunity and it is the only one of its kind. The concept behind Coinspace is the result of the cryptocurrency boom. We offer amazing benefits for people who are looking for financial success and independence. This is why our services hold massive worldwide appeal.

Our mission is to provide you with a mining service you can use for mining cryptocurrencies. We have taken great care in order to de-mystify the process of mining. This enables you to quickly master the skills required to start mining and making profit off of it without any prior experience.

Coinspace provides you with a once in a lifetime opportunity. It  revolutionizes the business world of today’s digital economy. We offer a high-income opportunity with an extensive bonus program connected to the best lifestyle awards.

Here is how this money making opportunity is presented:

Coinspace Scam Presentation Video

Coinspace Scam Reality

The people running Coinspace are Mrs. Mojca Plut and Jerry Plesko. In a recent video Jerry Plesko was listed as CEO and Co-Founder of Coinspace Ltd.. He is from Slovenia. – Source Coinspacescoin.com.au

Jerry Plesko CEO and Co-Founder of Coinspace Ltd

Jerry was involved with a MLM health and wellness scam calling LiveSmart 360 before he created Coinspace.

Here is a picture of Jerry Plesko  and his wife Maja Rejec when he was a representative for the LiveSmart 360 MLM.

Jerry Plesko and his wife Maja Rejec

LiveSmart 360 has been compared to WakeUpNow by businessforhome.org: Leaders not paid, vendors not paid, employee lay-offs.

Coinspace Ltd.
Whitehall Mansions
Flt 9  Triq Luqa Briffa Il
Gzira GZR 1506
Malta

The Coinspace scam is similar to the OneCoin scam. They are selling packages which generate coins that can in the future become valuable. After you buy a package, you recruit your friends and family to do the same thing. They run this scam this way so that they can say that they are not an investment. You are not investing, but buying digital coin mining.

They claim in their compensation plan that there is minimal risk in purchasing from them because of the following:

We guarantee a minimal risk and maximum security due to the exclusivity of the S-coin in its pre-launch form. We guarantee you its value by mining several cryptocurrencies already on the market. We also took the precaution of making sure the S-coin will not drop under a certain coin value. We will be able to do that by having a backup of the coin. How? We will let that piece of information remain our confidential business secret until the S-coin’s official launch.

In their income disclosure the story it a lot different: “Mining cryptocurrencies carries a high level of risk, and may not be suitable for everyone.”

Coinspace Ltd. is not licensed or authorized to conduct investment service business by the Malta Financial Services Authority.

MFSA Coinspace Ltd. Warning

The Malta Financial Services Authority (“MFSA”) has become aware that the Malta registered company Coinspace Ltd. with registered office at Mariah Building, Industrial Estate, Triq IlKappar, Mosta, Malta, having an internet presence at http://coinspace.eu/ is offering a range of services related to crypto-currencies, including exchange and cloud mining services and appears to be offering the opportunity to ‘invest’ in the ownership of crypto-currencies.

The MFSA wishes to alert the public that Coinspace LTD. is not licenced or otherwise authorised by the MFSA to provide any investment or other financial services in or from Malta, which are required to be licenced or authorised under Maltese law. The public should also be aware that any investment opportunities promoted by Coinspace Ltd. are likely to be of a risky nature with a high risk of loss of money. – Source MFSA

Coinspace claims to handle the mining process that generates valuable coins. This is just the smoke and mirrors that allows them to control the money that enters this Ponzi scheme and when it is released to old investors. With Coinspace 75% of the recruiting commission paid out a is withdrawable, the remaining 25% must be reinvested.

There is no proof that they are generating a profit from the mining they claim to be doing.

This company is using the popularity of Bitcoin to get people to purchase mining packages that have no verifiable proof that they are generating income. This is a Ponzi scheme that includes recruiting and MLM to maximize the amount of people that are brought into this scam.

Cost

It is free to join Coinspace, but you will have to upgrade to a paid package in a short period of time.

POSITION PACKAGE
PRICE   0€

Members with the FREE POSITION package must upgrade their package within 60 days after the date of their enrollment.

MICRO MINE
PRICE   150€
POINTS  20
BINARY   10€
DIRECT COMMISSION  18€/30€
(12%)/(20%)
TOTAL  28€
15 coins / 1 per day

MINIMUM MINE
PRICE   300€
POINTS  50
BINARY   25€
DIRECT COMMISSION  36€/60€
(12%)/(20%)
TOTAL  61€
30 coins / 2.4 per day

BASIC MINE
PRICE    700€
POINTS  120
BINARY   60€
DIRECT COMMISSION  84€/140€
(12%)/(20%)
TOTAL  144€
100 coins / 5.5 per day

QUARTER MINE
PRICE   1,500€
POINTS  250
BINARY   125€
DIRECT COMMISSION  180€/300€
(12%)/(20%)
TOTAL  305€
250 coins / 12 per day

HALF MINE
PRICE   3,000€
POINTS  500
BINARY   250€
DIRECT COMMISSION  360€/600€
(12%)/(20%)
TOTAL  610€
500 coins / 24 per day

FULL MINE
PRICE   6,000€
POINTS  1,000
BINARY  500€
DIRECT COMMISSION  720€/1,200€
(12%)/(20%)
TOTAL  1,220€
1,000 coins / 48 per day

DOUBLE MINE
PRICE   12,000€
POINTS  2,000
BINARY  1,000€
DIRECT COMMISSION  1,440€/2,400€
(12%)/(20%)
TOTAL  2,440€
2.000 coins / 100 per day

ULTIMATE MINE
PRICE   24,000€
POINTS  4,000
BINARY  2000€
DIRECT COMMISSION  2,880€/4,800€
(12%)/(20%)
TOTAL  4,880€
8,000 coins / 200 per day

Products

They offer no retail products for you to sell to customers.

Compensation Plan

Click Here for the full Coinspace compensation plan.

You can earn a Direct Commission every time you personally sponsor a member with a business package. You must be active with your starter kit or be in the system with your Coinspace Business Package. Your commissions are daily, but paid weekly immediately into your e-Wallet.
Direct commission (fast start bonus) (12% / 20%)

Earn up to 1,200,000€ a month by receiving up to 50% on the volume in your weaker leg to unlimited depth. Everyone in your binary structure counts towards your commissionable volume, even people placed under you. You must personally enroll and maintain 2 active members with business packages, 1 on your left side and 1 on your right side, to qualify for an Active Member and all your binary commissions.

Matching bonus: You can earn up to 10% of the binary commissions of your personally sponsored members and up to 20% on up to 2 generations in your downline.

An automatic, weekly purchase of coins helps support both the network as well as the value of the coin by maintaining a constant demand for more coins from already-existing members. 25% of all commissions earned through network building are invested directly into the mandatory automatic purchase (mandatory purchase) of coins. Until the S-coin is officially launched the Coins are bought automatically at a fixed price of 0.5 € per Coin and assigned to your Held Account. After  the S-coin is officially launched you can use the money intended for the Mandatory buy to buy coins at market value at any given time.

Income Disclosure

Mining cryptocurrencies carries a high level of risk, and may not be suitable for everyone. Past performance is never an indicative of future results. The high degree of leverage can work against you as well as for you. In general, before deciding to participate in any mining activity you should carefully consider your objectives and risk as well as your level of experience and expertise.

Return Policy

Where the Member terminates the Agreement within fourteen (14) days after entering into the Agreement the Member must return to the Company any Products and Services the Member has purchased. He/She has to receive from the Company the following:

  • where the Member has terminated the Agreement the price which the Member paid for the Products and Services, less
    (i) a handling charge of ten per cent (10%) of the price;
  • The money has to be refunded within a period of twenty eight (28) days after the written notice of termination upon receipt.
  • The Member understands and agrees that all pertaining bonuses or commissions will be reduced upon request of refund.

– Source Coinspace Terms And Conditions

Coinspace Scam Conclusion

In my opinion, Coinspace is a Ponzi scheme that is linked with a pyramid recruiting scheme disguised as a new digital currency. They use the history of the increasing value of bitcoins to sucker you into their scam. Each individual who profits does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. The owner of this scam has a history of promoting MLM scams. MFSA has issued a warning about Coinspace offering an investment. Avoid the Coinspace scam.