BETL, a company operating a financial scheme targeting Bulgarian investors, has ceased paying dividends as of December 5, 2024. The company, registered in the UK but unregistered in Bulgaria and other countries it operates in, has been accused of running a pyramid scheme. The fraudulent nature of the operation was first reported by BNT on November 30 and has since gained attention in other media outlets. The company falsely claims to have British leaders, using images of unsuspecting Swiss and Spanish individuals to mislead potential investors.

BETL has reportedly attracted around 30,000 Bulgarian investors, with the total amount invested estimated at approximately 80 million dollars. However, this has raised concerns that the funds being collected may have been part of a Ponzi scheme, where earlier investors are paid with the contributions of newer ones. Some of the early investors have reportedly received returns, but many others have been left at a loss. It is believed that up to 40 million dollars may have been stolen, with millions more spent on marketing to attract further investments.

Alexander Issa, a recent investor in BETL, described his experience to BNT, noting how the company aggressively advertised its battery rental scheme. Issa invested 1,200 dollars to purchase eight batteries, believing he would earn 45 dollars daily in cryptocurrency. He was told that his investment would be returned after 33 days and that recruiting others would generate additional income. However, after a month and a half, Issa received only 400 leva, and on December 5, he stopped receiving dividends, prompting him to realize he had been deceived.

The scheme initially gained popularity through paid gatherings where participants were encouraged to recruit others, perpetuating the cycle. However, after a media investigation revealed the fraudulent nature of the operation, BETL attempted to downplay the reports, with the company's Bulgarian manager, Kalina Nikolova, dismissing them as incompetent. Despite this, the company made significant changes, including rebranding its Facebook group from “BETL Bulgaria” to “Power Pal - Bulgaria.”

The typical red flags of a pyramid scheme, such as aggressive advertising and promises of unrealistic returns, were evident in the BETL operation. Moreover, the scheme encouraged participants to recruit others, with bonuses offered for achieving higher investment levels. Experts warn that such schemes are highly unsustainable and often lead to massive financial losses.

Over 20 reports have been filed with the Bulgarian Ministry of Interior regarding BETL, with most of these focused on cybercrime. However, a collective lawsuit cannot yet be pursued, as investigators still need to identify the individuals behind the scheme. Lawyer Tsvetomila Sabinska, who is representing some of the defrauded individuals, explained that the ongoing investigation is critical to establishing the perpetrators' identities before any legal action can be taken.

Reports indicate that the total losses caused by the BETL pyramid scheme in Bulgaria may exceed 280 million dollars, with over 50,000 victims. The scheme's founders have reportedly launched a new platform under a different name on Telegram, continuing to deceive people despite the widespread backlash. Investigations are ongoing, but such cases often take a long time to resolve, especially when dealing with international operations. The scale of the losses and the rapid expansion of the scheme highlight the need for increased vigilance against similar fraudulent operations in the future.

Sources:

• Bulgarian National Television (BNT)
• Bulgarian National Radio (BNR)
• ClubZ