Earlier, TraderKnows exposed the scam behind TradingLink. Today, we’re back to reveal another fraudulent scheme—TradingLink’s partner, Oak Smart. Let's take a closer look at how this Ponzi scheme operates.
Who is Oak Smart?
According to Oak Smart’s website(https://www.oaksmart.com/#/), here’s what they say about themselves:
“ Oak is a global leader in asset management, offering comprehensive financial trading services. Our focus is on the stock and cryptocurrency markets, employing quantum trading technologies and asset trust management to handle capital for individuals and entities. Oak also invests in promising projects, venture funds, and startups, committed to paving the way to wealth for everyone through innovation and expertise. ”
At first glance, this sounds quite impressive, but even in this short introduction, there are glaring logical inconsistencies. Oak claims to be an asset management company, yet they provide financial trading services—two fundamentally different lines of business. Asset management focuses on investing and managing client funds, while trading services typically fall under the domain of brokerage firms. Additionally, both activities require proper regulatory licenses. Oak Smart, however, lacks any official regulatory approval. Would you trust your money with an unregulated entity operating in the shadows?
Some of you may have noticed that Oak Smart claims to be registered with FINCEN as a Money Services Business (MSB). Don’t be fooled—let’s explain why this “license” is just a façade.
The Illusion of a “FINCEN MSB License”
On their website, Oak Smart has a “Verify Us” button that redirects users to FINCEN’s site, where you can find a company called “OAK Smart Investment Ltd.” The search result allows you to download a PDF titled “MSB Registration Status Information,” showing that this company is indeed registered as an MSB.
At this point, it’s easy to feel reassured—after all, the information is coming from a U.S. government website, and the company name matches. But despite appearances, something still feels off.
When the TraderKnows team reviewed the document closely, the truth became clear: Oak Smart is misrepresenting its business. If you read the details carefully, you’ll see that Oak Smart is registered as an MSB, but their approved activities include currency exchange, foreign currency dealing, issuing and selling traveler’s checks and money orders, funds transfer services, and prepaid card sales.
Now, do any of these activities align with what Oak Smart claims to do—asset management or financial trading services? Clearly, none of them match. Even if these activities were legitimate, they would be limited to operations within certain U.S. states like Colorado and territories such as Guam and American Samoa. Yet Oak Smart aggressively promotes its services in Southeast Asia and mainland China, far beyond its legal jurisdiction. If this isn’t illegal operation, what is?
How Oak Smart Lures Investors
Scams succeed because they offer promises too tempting to resist, leading victims to invest more and more until they lose everything. Oak Smart follows this exact pattern. Their website promotes two main investment plans: one for cryptocurrency assets and another for USD assets.
- Cryptocurrency Investment Plan: Promises daily returns from Sunday to Saturday, with a projected monthly return of 8% to 30%. The investment amount ranges from $500 to $200,000.
- USD Asset Investment Plan: Claims daily USD income from Sunday to Saturday, with monthly returns ranging from 15% to 50%. The investment amount ranges from $10 to $200,000.
Such astronomical returns are hard to believe, even for the most seasoned investors. Legitimate products like index funds or real estate investment trusts (REITs) offer annual returns between 7% and 15%, not monthly. And credible cryptocurrency investment products come with clear disclaimers and transparent risk assessments, not guaranteed profits.
The Anatomy of a Ponzi Scheme
Aside from the too-good-to-be-true returns, Oak Smart also employs a multi-level marketing structure with up to eight tiers and three bonus mechanisms:
- Matrix Bonus: When investments exceed $500, the referrer earns 50% of the direct client’s earnings and 5% from the income generated by clients within a 10×20 matrix structure.
- Leading Bonus: When investments exceed $1,000 and the sub-team’s performance surpasses $120,000, the referrer gets 10% of the earnings from all subordinates.
- Global Bonus: When the sub-team’s performance exceeds 3%, the referrer receives 5% of global user earnings for the day. Senior partners also share an independent bonus pool equally.
With enticing rewards like these, it’s easy to see how people could get drawn in. But if you’re thinking about joining Oak Smart’s Ponzi scheme, you might as well prepare for the consequences—you’re only one step away from serious legal trouble.
What Should You Do if Someone Recommends Oak Smart?
If a friend or relative suggests investing in Oak Smart, it might be best to distance yourself. If they’re willing to involve you in a scam, that’s a red flag. Instead, the right move is to report the scheme to local authorities, keeping all chat and transaction records for future use.
How to Report These Scams
If you’re in one of the following countries, here’s how to report scams like Oak Smart’s and protect yourself:
Singapore
- Commercial Affairs Department (CAD):
- Email: spf_report_scams@spf.gov.sg
- Online Reporting: Singapore Police E-Reporting
- Hotline: +65 6325 0000
China
- Public Security Bureau Economic Investigation Department:
- Hotline: 110 (National Emergency Hotline)
- Report through the National Anti-Fraud Center App, available in app stores.
South Korea
- Financial Supervisory Service (FSS):
- Online Reporting: FSS Reporting Page
- Hotline: 1332
Japan
- National Police Agency (NPA):
- Emergency Hotline: 110
- Online Form: NPA Reporting Form
- Financial Services Agency (FSA):
- Contact: +81 3-3506-6000
- Online Reporting: FSA Reporting Page
Spain
- National Police (Policía Nacional):
- Online Reporting: https://www.policia.es/_es/colabora.php
- Hotline: 091
Vietnam
- Ministry of Public Security:
- Online Reporting: http://antoanantoan.vn
- State Securities Commission (SSC):
- Online Contact: https://ssc.gov.vn
United Kingdom
- National Crime Agency (NCA):
- Financial Conduct Authority (FCA):
- Online Reporting: https://www.fca.org.uk/consumers/report-scam-unauthorised-firm
- Hotline: 0800 111 6768
Remember to keep all relevant evidence when reporting—screenshots, transaction details, and any communications can be crucial for the authorities to investigate and recover funds.
