Consumer authority investigating DistributeX over potential legal breaches

The office for consumer affairs Is analysing entity DistributeX for potential breaches of consumer legislation, including unfair commercial practices.

A spokesperson said despite the ongoing investigation no consumers or enrollers in DistributeX have contacted the Malta Competition and Consumer Affairs Authority (MCCAA) in relation to this matter.

A spokesperson said matter remains under analysis and no conclusions have been reached at this stage.

“Owing to confidentiality issues, no further details may be disclosed at this stage,” the spokesperson said.

The Malta Financial Services Authority (MFSA) on Thursday issued a public warning about DistributeX, saying the entity is neither registered nor authorised to provide financial services in Malta.

The notice comes after a MaltaToday investigation which identified concerns about the entity’s operations.

The report described DistributeX as an obscure crypto marketing firm whose business model appeared to resemble a Ponzi scheme.

In a statement issued on Thursday, the MFSA said it had become aware of an entity operating under various names, including DistributeX, distributex, DistributeX Limited, DX Distribute and DX. The authority said the entity maintains an online presence through its website and the DX-Plus mobile application, which is available on Apple's App Store.

The regulator said the entity appears to operate from several locations across Malta, including Birkirkara, Hamrun, Mosta and Ħal Tarxien, and has been inviting members of the public to attend what it describes as "official employee meetings".

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The MFSA said none of the entities operating under those names, or similar variations, are registered as companies in Malta. It added that neither the entity nor any individuals, representatives or promoter groups operating under those names have ever been licensed, authorised, regulated or otherwise approved by the authority.

"Accordingly, they are not permitted to provide financial services or carry out any activity that requires authorisation under Maltese law," the regulator said.

The authority also said it had identified features in DistributeX's business model that resemble characteristics commonly associated with multi-level marketing arrangements and may also exhibit elements linked to pyramid schemes.