Sofia, Bulgaria – BETL, a company purporting to operate a lucrative financial scheme, has ceased paying dividends to its investors as of December 5, 2024.
Registered in the United Kingdom but unlicensed in Bulgaria and other countries where it operates, BETL is now under scrutiny for allegedly orchestrating a pyramid scheme.
The fraudulent nature of its operations first came to light through a report by the Bulgarian National Television (BNT) on November 30, 2024, sparking widespread media coverage and public outrage.
Dubious Practices Unveiled
BETL reportedly lured approximately 30,000 Bulgarian investors, amassing an estimated $80 million in investments. The company claimed to offer high daily returns on investments in a purported battery rental scheme, payable in cryptocurrency.
However, investigations have revealed that the operation exhibits the hallmarks of a Ponzi scheme, where returns to earlier investors are funded by the contributions of newer participants rather than legitimate business profits.
Media reports highlight that BETL falsely claimed to have British leaders, using photographs of unsuspecting Swiss and Spanish individuals to bolster its credibility.
The company aggressively promoted its scheme through paid gatherings and online advertisements, encouraging participants to recruit others to sustain the cycle of investments.
Investors Left in the Lurch
While some early participants received partial returns, a significant number of investors have reported losses. The abrupt halt in dividend payments on December 5 left many investors in shock.
Among them is Alexander Issa, who shared his ordeal with BNT. Enticed by promises of earning $45 daily in cryptocurrency, Issa invested $1,200 to purchase eight batteries, expecting a full return on his investment within 33 days. However, after receiving only 400 leva over a month and a half, the payments stopped entirely.
“The company’s advertising was relentless,” Issa recounted. “They made it seem like a foolproof opportunity. When the payments stopped, I realized I’d been deceived.”
A Pattern of Deception
BETL’s scheme relied heavily on recruitment, offering bonuses to participants who brought in new investors. Such tactics are typical of pyramid schemes, which are inherently unsustainable.
The company’s marketing efforts were extensive, with millions reportedly spent to attract more participants. However, as the scheme’s flaws were exposed, BETL’s credibility unraveled.
Following BNT’s investigative report, BETL’s Bulgarian manager, Kalina Nikolova, attempted to dismiss the allegations as “incompetent reporting.”
Nonetheless, the company quickly rebranded its Facebook group from “BETL Bulgaria” to “Power Pal – Bulgaria,” a move seen as an effort to evade scrutiny.
Mounting Legal Challenges
As of now, over 20 complaints have been filed with the Bulgarian Ministry of Interior, primarily focusing on cybercrime.
Lawyer Tsvetomila Sabinska, who represents several defrauded investors, emphasized the importance of identifying the perpetrators behind the scheme. “Without establishing the identities of those responsible, it’s impossible to pursue a collective lawsuit,” she explained.
The investigation faces significant challenges, given BETL’s international reach and lack of transparency. Reports suggest that up to $40 million may have been siphoned off by the scheme’s operators, while millions more were spent on marketing.
The total financial losses linked to BETL in Bulgaria are estimated to exceed $280 million, with over 50,000 victims affected.
Continuing Deception
Despite the backlash, BETL’s founders have reportedly launched a new platform on Telegram under a different name, continuing to target unsuspecting investors.
This development underscores the resilience of such fraudulent operations and the difficulties in shutting them down entirely.
Experts warn that schemes like BETL exploit a lack of regulatory oversight and public awareness. “The promises of quick, high returns should always raise red flags,” said financial analyst Dimitar Petrova. “These schemes prey on trust and desperation, often leaving investors in financial ruin.”
Calls for Greater Vigilance
The scale of BETL’s operations has prompted calls for stronger regulatory measures to prevent similar scams. Authorities are urged to enhance cross-border cooperation in investigating and prosecuting such crimes, given their international nature.
“This is a wake-up call for regulators,” said Petrova. “Fraudulent schemes like BETL thrive in jurisdictions where enforcement is weak. Educating the public about the risks of unregistered investment opportunities is equally critical.”
A Cautionary Tale
BETL’s rise and fall serve as a stark reminder of the dangers posed by unregulated financial schemes. For the thousands of investors left counting their losses, the path to justice remains uncertain. The ongoing investigation may provide some answers, but the road to recovery will be long and arduous.
In the meantime, authorities and experts stress the importance of vigilance. “If something sounds too good to be true, it probably is,” Petrova cautioned. “Investors must conduct thorough due diligence and avoid schemes that promise unrealistic returns.”
As the BETL case unfolds, it highlights the urgent need for heightened awareness and regulatory action to protect investors from falling prey to similar scams in the future.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members