Crowdfunding or scam? Concerns rise over new "Befree" investment scheme in Uzbekistan

The scheme has been promoted through closed Telegram groups, where organizers present it as an investment opportunity and hold regular video sessions outlining potential earnings.

Crowdfunding typically involves raising small amounts of money from a large number of people to support specific projects, usually without guaranteed returns. Analysts say schemes such as Befree misuse the concept to attract individuals with limited financial literacy.

Participants are required to pay an initial $10 fee to activate an account and then choose between programs such as “Every Day” and “Autohouse,” which involve purchasing so-called “business positions” at different price levels.

Returns are allegedly generated through payments made by new participants – a hallmark of pyramid schemes in which earlier investors are paid using funds from later entrants. The platform does not appear to be linked to any identifiable project, product, or service, raising further concerns about its legitimacy.

One promoter told local media he had not realized the scheme was a pyramid structure and had encouraged several others to join, later refunding some participants from his own funds.

Uzbekistan has been described as a “hot market” for cyber fraud, with similar schemes continuing to emerge despite criticism and warnings from authorities. Experts say the lack of accountability for those promoting such schemes contributes to their spread, as new participants are drawn in by promises of quick and high returns.

Authorities have not publicly commented on the Befree scheme, and it remains unclear whether any formal investigation has been launched.