Liyeplimal | Review & SEC Compliance | Crypto Ponzi in Douala?

Liyeplimal is the investment part of the parent company, SIMTREX COMMERCIAL BROKERS LLC, promising 2-37% interests.

Its principals are propped by a license from an unnamed agency in Dubai, although the in-platform endorsed cryptocurrency, Limocoin Swap, operates via a South African brokerage (SIMTREX COMMERCIAL BROKERS).

While the deal is passive profits (accruing huge Returns on Investments in the long run) in crypto investments, the official website,, advertises that the company is MLM. You can see this on the top of the homepage.

As a project focusing on Cameroun, its publicly available information are in both French and English, with Emile Parfait SIMB mentioned as the dev team CEO.

The attached audit to project LIMCOIN SWAP is thorough and detailed on data and areas of focus, albeit a disclaimer effectively severs the company from any implied benefit of an audit anyway.

From listing the audit coverage to subtly disconnecting the company from any consequent warranty, Liyeplimal strikes as the typical MLM vague subscription script. You can spot the shrift from this Disclaimer section in this address.

Also, some sources could trace core Liyeplimal agents to failed MLM stints, all ending in a Ponzi run. That is why many people are looking to learn more about the platform before throwing in with it. As it happens, the most recurring question is, Is Liyeplimal legit? We explain some crucial aspects of the project _ as it affects security violation _ in this article. Read on below for details.

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Liyeplimal Swap: What to Expect

For a detailed analysis, see the legal aspect of Liyeplimal as per SEC-defined investment instruments. We only provide a brief overview here.

The project derives credence from Global Investment Trading (GIT), a publicly-traded enterprise that prospects investment opportunities in DeFi. GIT offers the following services.

Market analysis, profit portfolio, and optimal yields from trades

Members can acquire a Visa debit card, get the platform’s products, and leverage the system for referral commission. This bit of service is obtusely worded, as in the clip below.

G.I.T. uses the concept of recommendation as a business model to develop its community in Africa and around the world. So, the MLM cues here again.

Also, you can expect to buy products, qualify for a flight ticket, and join a crypto trainee class.

Aren’t some of the above services making Liyeplimal subject to financial regulation?

Arguments have been made in an enclosed legal opinion on the applicability of Liyeplimal as a security instrument based on ICO and volume in circulation. Here is a part that stands out, amidst all the snap and zip of implied SEC regulation breaches.

In this regard (sic) the SEC may question why tokens are sold to those who have no use for them and may have a compelling argument that the tokens could only have been sold as an investment vehicle in those specific situations.

Regardless of its attempt to defuse mixed public reactions to the token ICO, execs skew the extent of legal review expounded on the site. Since the above is especially incriminating given the SEC violation, execs then stops the securities probe from analyzing the use of Liyeplimal Swap as an investment asset.

See why regulation is necessary below.

Does the Project Align with SEC statutes on Decentralized Applications?

The short answer is NO.

Based on the definition of MLM as a “human algorithm” for reaching a broad market community, the ICO constitutes an unregulated offering.

Contrast MLM with Direct Sales (where affiliates work for registered companies and earn fixed profits despite the volume of order). Note that DeFi easily coopts MLM, promoting regulatory agencies to look into the situation.

Here is a clip from the same legal opinion page on the site, explaining what constitutes a non-DeFi application.

The reach of the Securities Act does not stop with the obvious and commonplace. Novel, uncommon, or regular devices, whatever they appear to be, are also reached if it be proved as a matter of fact that they were widely offered or dealt in under terms or courses of dealing which established their character in commerce as “investment contract”, or any interest or instrument commonly known as security.

Credit for the above postulate is due to a ruling in SEC v C.M. Joiner Leasing Corp., 320 US.344, 351 (1943).

So, the long answer is still NO. The Liyeplimal project does not align with security regulation requirements. Contrarily, it attempts to evade it by limiting the purview of the attached legal prognosis on the website.

Is it a Ponzi?

Liyeplimal is an ICO-dependent project intending to sell to clients via multi-level marketing.

As it happens, the project is currently down for unstated reasons, possibly relating to a security violation.

How is it a Ponzi, though?

Any profit option relying on deposits from newbies for revenue is a Ponzi scheme. Liyeplimal is irrelevant on the ETH blockchain unless many people keep buying the token to keep it afloat. Since the same is true of Ponzi, Liyeplimal is one.

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