Cytonn

Total Amount Raised = Ksh 20 billion

https://www.youtube.com/watch?v=sI5TAEmhseI

WHY CYTONN INVESTORS ARE GUARANTEED TO LOSE MONEY

The thought process of Cytonn founders was to raise money from the public instead of banks for the purposes of property development. Basically, cut out the middleman (banks) and raise the cash directly from investors.

Cytonn offered investors the same return of about 16% - 18% as they would have paid to banks. However, they could not use banks because banks require collateral while “investors” don’t. The end goal all along was to convert “investors” into customers i.e [COLOR=rgb(184, 49, 47)]forced demand.

This is how the scam works:

  1. Raise 20 billion from “investors” who don’t require collateral

  2. Build projects worth 8 billion

  3. Default on the repayments

  4. List the completed projects you constructed using 8 billion at 20 billion i.e 12 billion profit

  5. Give the original investors an opportunity to redeem their cash by taking over the properties

  6. Use 2 billion for legal issues and PR

  7. Founders pocket 10 billion and live happily ever after hiring 24/7 armed bodyguards for 5 years.

  8. Investors feel cheated but in the end, they didn’t know they were customers all along :D. Right now they will bitch and mourn, and in the end they will get those apartments instead of their money - they just don’t know it yet.

  9. You thought you were investing in a product with 16-18% return but you were actually buying an overpriced apartment from Cytonn off-plan because that’s exactly what you will get.

#Sun Tzu said every battle is won before it is ever fought. This was a very elaborate and well-thought out scam. Bonobos could never see it coming.

:D:D:D:D:D

Are those conmen and snake oil salesmen patient enough to play the long game as you have described?

Most of those steps you have described is just them reacting to circumstances as they arise. It might seem like an elaborate drawn out process, but believe me, these guys when pushed to a corner will come up with hekaya za abunwasi to keep the scam going as far as possible.

Next time when someone offers you 16%+ return instead of borrowing from the bank, you should think twice. That is the main lesson here. It was the biggest red flag in the scam.

True that. I was quite surprised to see even bonobos in the corporate world going crazy about such returns. Of all the pepple you would expect to know the world of finance, it was unbelievable seeing them being so uninformed.

Even the most reputable investment firms in Newyork rarely give such returns.

There is a lady I know with an MBA who works as a recruiter for a well known HR firm alingiiza pesa yake, na ya chama huko.

[SIZE=5]Wacheni kuwa pessimistic. [/SIZE]

[SIZE=5]Nobody would have anticipated the recent pandemic. [/SIZE]

[SIZE=5]I blame Cytonn’s misfortune on COVID.[/SIZE]

Bullsh.it. Offering 16% returns is outright scamming people. You don’t have to be a genius to know that such returns are not sustainable.

16% in real estate development, one of the most illiquid investments on earth, in a cooling market…are you kidding me. Give me a break.

But they weren’t paying back investors way before cofit, they rode on that as everyone else.

[SIZE=5]They did not state they would offer 16% returns.[/SIZE]

[SIZE=5]They stated ‘returns OF UP TO 16%’, meaning anywhere in the region of 0% to 16%[/SIZE]

[SIZE=5]This would be an easy case to win in court; How can you demand what you weren’t promised in the first place?[/SIZE]

[SIZE=5]My point remains, it’s COVIDs fault, not Cytonn. I refuse to believe otherwise.[/SIZE]

Yeah right. Anyone with a brain knows this legal lingo lawyers and scammers use. Try something else.

If you think Cytonn’s failure to pay has anything to do with covid, you obviously belong in that group of morons who were conned and there is nothing I can do to save you from your own stupidity.

[SIZE=5]This should serve as a lesson to future investors and greedy folks; Read the fine print! Otherwise utafinywa.[/SIZE]

[SIZE=5]But however much you attempt to deny, the pandemic contributed to Cytonn’s demise…[/SIZE]

Cytonn promised unrealistic returns. Period. Hii ingine unasema ni kelele.

Utaambiwa mara ngapi that their financial problems started way before covid, hio excuse ni kurukia wamerukia. Check most victims walianza shida na wao before 2020. Some projects stalled kutoka 2017 & 18 where was covid then.

But if they made such a tidy sum from this scam, why are they having trouble with institutional lenders as well? I read in business daily that a Finnish company came close to auctioning their property before they “restructured.” It’s one thing to scam individual bonobos who can’t take you anywhere, but why risk antagonizing deep-pocketed financiers who can hire top-notch lawyers and actually auction off your property?

It’s simple, Cytonn spread themuselefus too thin in addition to paying premium interest rates on loans. You can’t take money from credit institutions and individual investors to finance the same projects and still expect to turn a profit. At best I think the directors funneled away a few hundred million to a billion shillings to offshore accounts. Two billion at most. This is still a tidy sum, but it ain’t no 10 billion.

[SIZE=5]I am adamant and certain the pandemic sealed the deal for them. [/SIZE]

[SIZE=5]Investors waelewe tu these things happen.[/SIZE]

Look at it from the other side of the coin, it was a well executed payday and the pandemic provided the perfect escape plan. It’s now court cases on cases, there’s enough cash for legal fees.

[SIZE=5]Ndiyo hiyo.[/SIZE]

[SIZE=5]https://media.baamboozle.com/uploads/images/79952/1599700465_465510[/SIZE]

The investors will eventually get tired of the court proceedings and being bled of cash. Majudge waonwe za macho kesi ishinde ikidrag, finally itasemekana best resolve ni investors wapewe hizo shells of projects left, apartments, houses etc wafanye vile watajiskia nazo.

Those apartments can not be enough for all the investors, plus the projects were not meant to be the source of cash. The cash was to come from continued recruitment of new investors

Hizi analysis za jaba acha Facebook na whatsapp group.

This is just an investment gone bad, hakuna kosokoso ingine.

Meffi post.