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Singapore Online cryptocurrency trading platform Torque now faces up to 115 police reports, with investors worried they were defrauded.
There were some Torque users, including Singaporeans, who were involved in promoting the platform, which led investors to believe that Torque was actually a multi-level marketing (MLM) scheme.
A multi-level marketing or pyramid selling scheme will typically require participants to pay an upfront charge. In return, the participants are promised financial rewards for each additional participant recruited – hence the pyramid-like structure. As more salespersons are recruited, participants hope to recover their upfront charges and earn sizeable profits. However, such pyramid schemes will eventually collapse when they run out of new recruits, resulting in those salespersons at the bottom of the pyramid losing all their upfront charges.
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