World Mining offers unregulated securities purporting to represent the rental of cryptocurrency mining servers, with investors “purchasing hash” (investing money in mining computers) and receiving returns of up to 44% per month simple interest for a term of up to 360 days.
There are five servers which pay returns as follows, with larger investment amounts being generally eligible for servers paying higher returns (although bizarrely, S3 has the highest annualised return despite having the shortest investment term and the third highest minimum subscription). Despite World Mining supposedly being a British company (more on that later), returns are quoted in US dollars and Bitcoins.
- S1 – $15 to $2,025 – 360% profit after 360 days (390%pa)
- S2 – $150 to $7,500 – 396% profit after 360 days (428%pa)
- S3 – $900 to $15,000 – 336% profit after 280 days (1,174%pa)
- S4 – $4500 to $150,000 – 377% profit after 290 days (1,129%pa)
- S5 – $30,000 to $300,000 – 440% profit after 300 days (1,126%pa)
Who are World Mining?
World Mining Limited has one shareholder and director, Philip Johnson. World Mining Limited was incorporated in October 2017 and consequently is yet to file accounts.
In December 2017 World Mining’s website credited Philip Johnson as CEO, and also included a range of fake biographies using stock images, as revealed by BehindMLM.com. The management page has since apparently been overhauled – Philip Johnson’s name now does not appear anywhere in the management page, and the stock images have been replaced.
The new management page now does not state who is the CEO. Presumably it is still Philip Johnson. Whether any of the new images now represent real employees is unknown.
Should I invest with World Mining?
World Mining claims to offer returns of over 1,000% per annum at a time when the UK base rate is 0.5% and mainstream stockmarket-linked investments generally use 5% per annum as a medium rate of projected return.
The company claims that it generates its returns from cryptocurrency mining, however the returns from cryptocurrency mining are far less than they were in Bitcoin’s early years due to people entering the market with more and more powerful computers.
If anyone was able to legitimately generate returns of over 1,000% per annum from cryptocurrency mining, others would enter the market and dilute World Mining’s returns well before the 280-360 day period was up.
World Mining provides no independently audited accounts or other evidence that they are able to consistently generate returns of over 1,000% per annum.
The reality is that the only way to consistently generate returns of over 1,000% per annum is to pay existing investors using new investors’ money. Using new investors’ money to pay existing investors makes World Mining a Ponzi scheme.
As with all Ponzi schemes, when new investors’ money dries up the scheme will collapse. The administrators of the scheme will make money, along with affiliates who earned commissions from persuading others to invest, and possibly a few early entrants. Everyone else will lose money.
World Mining’s website, with its offer of returns over 1,000% per annum and invitation to subscribe money via its “Registration” button, clearly represents an inducement to invest and is therefore a financial promotion. Offering a financial promotion in the UK requires authorisation from the Financial Conduct Authority.
A search of the FCA Register shows that World Mining is not authorised to offer financial promotions in the UK (a “World Mining Fund” is clearly unrelated, given it was registered 14 years before World Mining Ltd existed), and World Mining does not claim any authorisation for its financial promotion on its website. World Mining is therefore committing a criminal offence under the Financial Services and Markets Act.