Cryptocurrency Scheme Under Investigation in New Zealand

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Sienna Rowley
Sienna Rowley
Sienna is an editor at Cloud Host News. She is an internet enthusiast, always eager to explore the latest trend in the tech space. She is a modest family woman who loves traveling in her free time.

The Commerce Commission is carrying out an investigation on a cryptocurrency multi-level marketing scheme named Lion’s Share in New Zealand.

It lures individuals to pay hundreds of dollars to enroll in the scheme hoping that they would be rewarded in cryptocurrencies from each new person they signed-up.

Campbell Pentney who is a special counsel at law firm Bell Gully stated that in his view, Lion’s Share had the peculiarities of a pyramid scheme.

Pentney stated that the platform as an individual doesn’t seem to have any means to generate profits apart from the means of obtaining the funds from consecutive investors- pointed as commissions.

As per the Fair Trading Act, pyramid selling schemes are not legal as they generate money from the recruitment of others, rather than from the sale of a product or service.

Several complaints regarding the pyramid scheme have been received by the Commerce Commission that enforces the Fair Trading Act. It verified to RNZ it had initiated a formal investigation into the promotion of Lion’s Share in New Zealand.

However, no additional details regarding the scope of the investigation were given. And one of the scheme’s local promoters, a South Auckland woman in a social media post stated that she would meet the commission.

RNZ contacted Cullen for any statement regarding this matter however she didn’t reply.

Cullen conducts online and in-person seminars stating Lion’s Share provide individuals a chance to earn additional money.

She is famous on social media with a few of her videos receiving thousands of views. Even in one video on YouTube, she alleged that she earned  $154,000 from Lion’s Share within two weeks.

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