Uzbekistan faces new cryptocurrency scam: Veemine’s deceptive promises

A new scheme promising easy money under the name Veemine has emerged in the lives of people weary of fraud and financial pyramids. Despite its obvious deceit, many are investing in this project, driven by belief in its promises. While law enforcement agencies await formal complaints, Uzbekistan risks facing a new wave of victims deceived by financial pyramids.

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In Uzbekistan, another financial pyramid, VM (Veemine), has surfaced. Over the past month, this project has been actively promoted in the Fergana Valley and Khorezm regions.

What is VM?

Veemine is yet another scam, indistinguishable from previous financial pyramids that have defrauded thousands and siphoned their money. Only the façade – the “wrapper” concealing its pyramid nature – has slightly changed.

For instance, in the “Parker” financial pyramid, people were convinced to invest in power bank rentals for substantial profits. In “Sun Eco,” investments in solar panels were pitched as a way to earn significant returns quickly. With VM, the deception revolves around a device called Veemine, purportedly used for cryptocurrency mining.

The company claims it was established in 2013, with its headquarters in the United Kingdom.

“VM, with 10 years of professional expertise in blockchain, covers cryptocurrency mining, mining pool operations, and data center services. The company has successfully built a global business network, providing efficient and secure mining solutions for multiple currencies like BTC, ETC, LTC, and others. As an industry benchmark, VM has consistently been committed to creating long-term value through the stable development of the global cryptocurrency market and new technologies,” the project’s social media channels proclaim.

VM claims to have launched a national strategic research project in Uzbekistan in 2023. However, no official media outlets have reported on the company or its activities in Uzbekistan. This alone is evidence that VM is yet another financial pyramid.

“Creating jobs”

Like similar schemes before it, VM claims to have entered Uzbekistan with “grand objectives,” asserting that the company is expected to create numerous job opportunities.

“Under VM’s long-term investment plan in Uzbekistan, the company promises to support a full chain of employment, including operating and maintaining mining equipment, calculating profits, and managing assets, through an online and modular skills training system. It is expected to create more jobs in the digital economy,” one of the project’s promotional channels states.

VM justifies the phrase “creating new jobs” by equating it to “earning income online by becoming a member of the company.” This so-called membership supposedly transforms a “client” into a company employee.

Additionally, applicants for membership are required to provide certain personal information under the pretext of “verification and background checks.” This raises concerns that those behind the project could collect sensitive personal data from numerous individuals.

“Invest and earn”

VM promises significant profits by converting cryptocurrency “mined” by the Veemine device into real money. This is where the true intent of those behind the pyramid becomes clear: not to “create jobs” in Uzbekistan, but to siphon people’s money.

The proposed income scheme mirrors those of previous pyramids: the more you invest, the more you earn.

Clients are offered the chance to rent various devices by investing money. For example, renting an ASIC-40 device for 400,000 UZS reportedly yields 18,400 UZS daily, totaling 920,000 UZS over 50 days. Additionally, a 40,000 UZS bonus is promised for each referred member.

The rental prices escalate with higher-tier devices. Renting an ASIC-800 device for 8 million UZS is said to generate 440,000 UZS daily, resulting in a 23.76 million UZS profit over 54 days.

Simple logic raises questions: if the company owns such devices endlessly “mining” cryptocurrency, why would it forgo the promised profits and instead seek rental fees? The answer lies in VM’s true aim: to amass billions in “rental fees” and abscond with the funds.

Exploiting emotions

Dozens of Veemine groups and channels are actively operating in Uzbekistan, with thousands of members. The financial pyramid has been particularly aggressive in its promotion over the past month.

Some individuals, aiming to earn money by recruiting others, are organizing group events, knowingly or unknowingly encouraging others to invest.

Moreover, these groups highlight stories of people who, after falling into hardship, supposedly became wealthy by renting Veemine devices. These stories are, of course, fabricated. The goal is to manipulate emotions and lure people into the pyramid’s trap.

For example, one group features a story about Rustam, a young man from Kashkadarya. It claims Rustam has been working with Veemine for six months.

“Six months ago, his life was in shambles: a sick wife, a crying child, elderly and disabled parents... Perhaps life’s pressures kept him going. He is one of the hardest-working members of my team. He said he earned nearly 300 million UZS in these six months. Today, on his 38th birthday, he bought a second device.

No one’s life is smooth. God gives us many opportunities to improve our lives. Those who fail to seize them will always find solace in dreaming,” the story about Rustam reads.

As long as there are victims, there will be deceivers

Over the past two to three years, various financial pyramids have surged in Uzbekistan: “Parker” offered power bank rentals, HNK promoted earning money by watching videos, Whats and Aif, “Blue Culture” posed as an environmental advocate, and “Give and Receive” promised gift-sharing. Thousands have been deceived by these schemes. Even foreign nationals have come to Uzbekistan, defrauding locals out of millions of dollars.

Some citizens, believing they can profit early and “get out,” knowingly participate in these pyramids despite understanding that they will eventually collapse. Such actions lead to even more people being deceived.

Kun.uz urges citizens to remain vigilant, verify all information, and avoid investing in dubious projects.