Central Bank: Damage Done by Cashbery Might Reach RUR 3bn

1 November 2018 (10:28)

UrBC, Moscow, November 1, 2018. The damage done by the pyramid scheme Cashbery might amount to as much as RUR 3bn, TASS refers to head of the Bank of Russia’s Fraud Prevention Department Valeriy Lyakh as stating.

‘RUR 1bn worth of damage is a conservative estimate. According to experts, however, the actual damage might amount to RUR 1-3bn,’ Lyakh said in answer to a question.

Now the Bank of Russia placed its files on a number of Russian and foreign businesses acting under the umbrella brand Cashbery with the Prosecutor-General’s Office and the Ministry of Internal Affairs in late September; the bank believes the companies’ actions might classify as a pyramid scheme.

According to Lyakh, Cashbery member companies use multi-level marketing techniques, promise their customers enormous ROI, and advertise aggressively on the social and mass media. They encourage people to invest their ruble and crypto currency savings but do not engage in any actual business operations; nor do these companies have the Bank of Russia’s license.

‘Cashbery managed to involve dozens of thousands of people in their network, which made them one of the largest pyramid schemes ever,’ Lyakh said.

The court hearing in Rostov-on-Don to have two of Cashbery websites blocked will take place on November 16. The company itself announced via its YouTube channel on October 11 that they would stop operating till November 1.

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