Originally Syndicated on June 20, 2024 @ 2:55 pm
In 2014, FutureNet emerged as a fraudulent operation disguised as a multi-level marketing platform offering huge profits via a matrix cycler technology. It entered the cryptocurrency space in 2017 with the introduction of FuturoCoin, which quickly crashed and caused investors to suffer large losses.
FutureNet, which was founded by Roman Ziemian and Stephan Morgenstern, scammed thousands of people worldwide before the co-founders were subject to legal action and international arrest orders.
Roman Ziemian, a co-founder of FutureNet, was arrested in Italy and fled the scene
Roman Ziemian, a co-founder of the infamous Ponzi scam FutureNet, was detained by Italian police, freed, and then left the nation. This arrest comes in response to a South Korean warrant alleging Ziemian engaged in a multimillion-dollar fraud.
In 2014, Ziemian founded FutureNet with Stephan Morgenstern as a business partner. With the launch of FuturoCoin in 2017, the scheme—which had first been a matrix cycler—turned into a cryptocurrency fraud.
The currency crashed in 2018 and had an unsuccessful relaunch effort in 2019. 2020 saw the start of the investigation by South Korean authorities into the fraud after complaints from 950 victims who lost 16 million EUR.
Earlier this year, Ziemian and Morgenstern left Poland for Dubai, where they lead opulent lives. Ziemian followed his racing dreams and even became victorious in an Italian Ferrari Challenge event.
On October 30, 2022, the Italian Guardia di Finanza detained him as soon as possible after this triumph, at South Korea’s request. Ziemian’s quick escape was caused by the Italian authorities’ decision to release him as he awaited extradition. It is now thought that he has returned to Dubai and is sheltering in his $6.4 million residences.
Stephan Morgenstern, meanwhile, met a similar end. After being taken into custody in Greece in October of last year, he was freed awaiting extradition and escaped to Albania.
In August 2023, while waiting for his wife to arrive at Tirana International Airport, he was again detained by Albanian police. Morgenstern, in contrast to Ziemian, is still detained and awaiting extradition to South Korea.
Although there were victims from Europe who fell prey to the scam perpetrated by FutureNet, no European authority has yet taken any substantial action against the co-founders of the company.
The Polish authorities have reportedly filed European arrest warrants for both Ziemian and Morgenstern as part of their continuing investigation into FutureNet. This inquiry has resulted in the recovery of $4.5 million out of the estimated $20.6 million in damages. Recent updates show that this investigation has led to the recovery of these funds.
As of right now, Roman Ziemian is considered to be a fugitive, and there is an international arrest order issued for him. Meanwhile, Morgenstern is now awaiting extradition. The case highlights the difficulties associated with the enforcement of financial crimes that occur across international borders and the ease with which accused persons may take advantage of legal loopholes to avoid punishment.
FutureNet MLM Ponzi scam: Key Points
Operations and Background
- Start: In 2014, Roman Ziemian and Stephan Morgenstern, co-founders, established FutureNet.
- Business Plan: Started as a matrix cycler, a popular multilevel marketing plan in which contributions from recruits assist previous members, it eventually included cryptocurrency when FuturoCoin was introduced in 2017.
- Collapse of FuturoCoin: A 2019 relaunch attempt was unsuccessful, and the cryptocurrency crashed in 2018.
- Charges: The plan promised unrealistically large investment returns, misleading investors with false information.
Victims and the Financial Effect
- Thousands of investors, including almost 20,000 in Poland alone, were the victims.
- Financial damages: The Polish government has recovered $4.5 million of the estimated $20.6 million in damages.
Current Court Cases and Their Results
- Polish Involvement: At least one arrest has been made in connection with the issuance of European arrest warrants by Polish police.
- South Korea is working to extradite Ziemian and Morgenstern so they can face prosecution.
Overall Importance
- The case is illustrative of the issues that are faced in the prosecution of cross-border financial crimes and the difficulties that are encountered in international law enforcement by highlighting the loopholes that exist.
- A cautionary story concerning the dangers involved with multi-level marketing (MLM) scams, especially those that include bitcoin, FutureNet serves as an example of MLM fraud.
Conclusion
It is clear from the FutureNet debacle that there are serious risks and problems associated with MLM scams, especially those using Bitcoin. In 2014, the company first debuted as a legitimate MLM platform, offering huge compensation via a matrix cycler method.
Stephan Morgenstern and Roman Ziemian were among the first members. In 2017, with the launch of FuturoCoin, the scheme became darker. The cryptocurrency FuturoCoin saw an abrupt collapse, leading to massive losses for thousands of investors.
The FutureNet debacle shows how disastrous it can be when investment plans are not legitimate. Worldwide, people have fallen prey to these frauds, which have wreaked havoc on economies, especially in Poland.
While investigations continued in South Korea and Poland, Ziemian and Morgenstern were able to temporarily evade punishment by using legal loopholes, despite international arrest warrants against them.
Since Ziemian managed to elude capture after his detention in Italy and Morgenstern managed the same after his release in Greece, the difficulties of pursuing cross-border financial crimes are brought to light.
For these con artists to face justice and for future frauds of a similar kind to disappear, more international cooperation and stricter enforcement measures are required.
Finally, FutureNet is a blatant warning about the dangers of bitcoin fraud and multi-level marketing (MLM) con artists.
The importance of being alert and under regulatory monitoring cannot be overstated when it comes to protecting investors against deceit.
