What is the ITP Corporation?
As the saying goes, if something appears too good to be true, it probably is.
Before shutting up shop, ITP Corporation (otherwise known as ITP Corp, Intelligent Technology Pioneer Company, ITP Club, ITP Tron, and Coscoin among others) operated as an “investment” scheme primarily marketing through word of mouth. They claimed to offer an amazing return on investment, with further rewards for those who recruited new members.
Although they operated internationally, many victims appear to live in the UK due to the nature of the referral scheme.
Investors in the ITP Corp scam were promised a staggering 2.5% – 4% compound interest per day. For context, the best interest rates from banks (as of early 2024) give slightly over 5% interest on a monthly basis. If ITP Corp’s promises were true, even a modest £100 investment would very quickly be worth thousands.
To explain these stratospheric claims, ITP Corp purported to invest in cryptocurrency using a bespoke artificial intelligence (AI) platform which guaranteed positive results.
Additionally, their documentation stated that they were based in Washington, USA, however, this was almost certainly a false front chosen purely to manufacture trust.
Those looking to invest should spend time researching the business beforehand. In the UK this can be done by visiting the Financial Conduct Authority (FCA) website and using their directory to confirm the authenticity of the company.
Consulting the directory regarding ITP Corp, the FCA warns that the firm is in fact not authorised by them and states: “This firm may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams.”
ITP Corporation’s Collapse
Towards the end of 2023, investors of the ITP Corp scam discovered that withdrawals from their accounts had been disabled with the outage attributed to a Thanksgiving Day rush in the US which overwhelmed their systems. Simultaneously, the company promoted a “Thanksgiving” bonus, offering a 100% match on all deposits, encouraging users to invest more to gain more.
Less than a week later, ITP Corp claimed that users needed to register and activate their accounts on a new system on account of the outage, requiring an additional payment of $30-100. This tactic is common in the final stages of a pyramid scheme when organisers are looking for a last-ditch cash grab before pulling out and shutting up shop.
The Washington State Department of Financial Institutions (DFI) warns:
“[The DFI] Securities Division has received multiple complaints regarding the entity ITP Corporation […] The complainants purchased cryptocurrency with the promise of being able to trade or sell that cryptocurrency with guaranteed profits. Investors were not able to withdraw their funds. Some investors were also asked to pay an additional $100 “ransom fee” to access their funds”.
Is ITP Corporation a Pyramid Scheme?
The behaviour of ITP Corp is a classic example of an illegal pyramid scheme.
Pyramid schemes rely on a steady supply of new investors to fund the payouts of the previous investors, with those at the top of the pyramid taking the money of those lower down. The scheme’s creator acquires a large sum of money from recruits, who in turn rely on additional investors. This cycle continues until the recruitment slows down, stops, or becomes too risky, and the creator attempts to disappear with the money.
Chloe Roche, Head of Fraud and an Associate Solicitor at CEL Solicitors offers advice to those who have lost money to illegal pyramid schemes like the ITP scam.
“When a pyramid scheme collapses – as they invariably do – the fallout is devastating. Investors are not only left to pick up the pieces after their money has been stolen but also reckon with the broken trust of colleagues, friends and family members. Sometimes, these relationships may never be the same again – even if the initial intentions were good.
“It’s important to understand that even if you believe your money is gone for good and that your bank has said they can’t or won’t help, you have options for recovering your money.”
