Karatbars Proves Its Business Model | BTCMANAGER
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These days, it is not going well for the success-spoiled Karatbars Group around the bustling boss Harald Seiz. The Federal Financial Supervisory Authority (BaFin) has prohibited the KaratBit Foundation from issuing KaratGoldCoins (KBC) in Germany. Hardly any less renowned, the German financial magazine “Handelsblatt” reported about these and other allegations. It also immediately painted a detailed portrait of Seiz – which was, admittedly, quite benevolent at times. And, as if this was not already bad enough, the accusations that some of Karatbars’ products and services are Ponzi or pyramid schemes aren’t getting any less. We took a closer look at the “gold company” and the individual points. What is the criticism all about and is it valid? After the remarkably open conversation that Seiz had with the two Handelsblatt journalists, the company offered us insight, as well. Additionally, Karatbars showed us some papers that didn’t play a role in public reporting so far.
Accusation Ponzi scheme
Time and again, it is being claimed that Karatbars is a Ponzi scheme, especially on anonymous online forums. The company ”Web Shield” was commissioned by Karatbars to make an assessment. This report, which we have access to, was created on November 11th, 2019, in cooperation with the consulting firm “Deloitte.”
This report certifies that Karatbars is not using an illegal business model / Ponzi scheme. The three-step investigation began at the end of August 2019. It scrutinized legal and reputation aspects. Additionally, a “Credit Card Scheme Compliance Review” was done, and transactions were examined.
Regarding the first point,