I believe that the very first image they created by giving some $200 worth of their CNB shitcoins to everyone joining their exchange. Nobody got the coins when they were faking the volume in there and when it started dumping hard, they began to release the coins to everyone so to make it worth a few cents.
I heard that story as well, as well as about people referring dozens of others and never being credited with the CNB they were owed. Total scam manuver.
And about the red flag thing: I forgot, they already have one.