The group of companies under the Cashbery brand will be replaced with a new platform, company owner Artur Vardanyan said in his YouTube address on November 1.
“The company has stopped its operations; registration is closed on the websites and the investment platforms Cashbery, Auctions League and Cashtrading. It will be impossible to make new investments, transfer internal currency, open consultation centers and hold educational events,” Vardanyan said.
On November 2, all Cashbery users will have their accounts settled. According to Vardanyan, the company has financial capability to clear its debts, but “not in full yet.”
“Within the next 100 days, we will create a new company, JDC. We have begun the process of obtaining the necessary licenses and documents. We will open in several dozens of countries and will have up to 5 mio participants in the first year. In February, you will see a new giant of the financial and investment industry,” Vardanyan promised.
He added that all Cashbery clients will be moved to the new platform.
Russia’s Central Bank estimated the potential damage of Cashbery’s activities at RUR 3 bln ($45.7 mio). In September, the bank submitted information about Cashbery to the Prosecutor-General’s Office and the Ministry of the Interior. The company presents itself as a financial services provider, but the regulator recognized it a typical Ponzi scheme with multi-level marketing, promises of high profits and aggressive advertising.