29 entries tagged “mlm”.
Co-founder of the ~$100M AirBit Club crypto pyramid scheme. He pleaded guilty and was sentenced in 2023 to 40 months in prison, with forfeiture of assets.
A Dubai-based MLM scheme that sold 'BTC packages' promising ~1% daily returns over 140 days plus referral commissions. In December 2017 the Texas State Securities Board issued an emergency cease-and-desist order alleging an unregistered, fraudulent securities offering; North American payouts stopped in early 2018 and the operation wound down.
A purported crypto mining/trading company (founded ~2018) that the U.S. DOJ says was a Ponzi scheme promising guaranteed daily returns. Founder David Carmona was sentenced in 2024 to 121 months (~10 years) and ordered to forfeit ~$3.6M.
A token (ORME) sold via the Ormeus Global MLM that the SEC said defrauded thousands of investors of $124M+. The Barksdale siblings falsely claimed it was backed by a $250M crypto-mining operation producing $5.4–8M/month — they had abandoned mining in 2019 after under $3M in total revenue.
A global crypto Ponzi/pyramid scheme (later rebranded 'Weltsys') that the DOJ and SEC say defrauded thousands of mostly Spanish-speaking investors of ~$8.4M with promises of guaranteed returns from nonexistent crypto mining and trading. Senior promoter Juan Tacuri got the 20-year statutory maximum.
Founder and CEO of USFIA, which sold the gemstone-'backed' GemCoin. He fraudulently obtained ~$147M from 72,000 investors in one of the largest pyramid schemes prosecuted in the Central District of California; pleaded guilty and sentenced in 2021 to 10 years.
Co-creator of Ormeus Coin (JonAtina Barksdale) who led production of the promotional materials behind the $124M fraud. The SEC won a default judgment ordering disgorgement and a ~$23.1M civil penalty.
Co-creator of Ormeus Coin who led worldwide roadshows promoting it with false claims of a $250M mining operation. The SEC won a default judgment over the $124M fraud, and the DOJ brought parallel criminal securities-fraud charges.
A top U.S. promoter of HyperFund (aka 'Bitcoin Beautee'). The DOJ said she earned over $3.7M from the ~$1.89B pyramid scheme; she pleaded guilty in January 2024 to conspiracy to commit securities fraud and wire fraud and settled parallel SEC charges.
Brother of OneCoin's vanished 'Cryptoqueen' Ruja Ignatova, who took over leadership of the ~$4B OneCoin scheme. He pleaded guilty in 2019 to fraud and money laundering, cooperated extensively with U.S. prosecutors, and in 2024 was sentenced to time served.
Brazilian national whom the SEC and DOJ identify as the creator of Forcount Trader Systems, the ~$8.4M crypto Ponzi/pyramid scheme. Charged civilly and criminally in 2022.
A senior promoter of the Forcount (Weltsys) crypto Ponzi scheme. He pleaded guilty to wire-fraud conspiracy and, in October 2024, received the 20-year statutory maximum sentence plus ~$3.6M restitution.
Founder of PGI (Praetorian Group International), which raised $201M+ as a Bitcoin Ponzi/MLM scheme (2020–2021). He pleaded guilty in 2025 to wire fraud and money laundering and was sentenced in February 2026 to 20 years in prison.
Co-founder of AirBit Club, a ~$100M global cryptocurrency pyramid scheme. He pleaded guilty and was sentenced in 2023 to 12 years in prison, with a $65M forfeiture.
A global multi-level-marketing scheme that sold 'investment packages' promising 300% returns over 16 months from purported forex trading, paid in crypto. Per the U.S. DOJ it raised over $650M from thousands of investors, then collapsed in 2022 blaming a 'hack'; founders were indicted in 2025.
A self-described 'investment club' led by Eddy Alexandre claiming a secret bot produced 5–9.99% weekly returns. DOJ/CFTC said it was a Ponzi/MLM that mainly targeted the Haitian-American community; ~25,000 investors put in ~$250M. Alexandre got 9 years.
A multi-level-marketing firm led by Ramil Ventura Palafox that claimed AI-powered Bitcoin/forex trading with daily returns up to 3%. Per DOJ/SEC it was a Ponzi: 90,000+ investors put in $201M+; net losses ~$62.7M. Palafox was sentenced in 2026 to 20 years.
An India-based Bitcoin Ponzi launched in 2015 by Amit Bhardwaj, promising 10% monthly returns for 18 months via an MLM model. India's Enforcement Directorate alleged ~80,000+ BTC was collected; loss estimates vary widely. Bhardwaj was arrested in 2018 and died in 2022.
A China-based MLM 'wallet/trading' Ponzi (2018–2019) that falsely claimed trading bots generated profits. A Chinese court found it took ~7.7 billion yuan (~$1.1B) from 715,000+ investors; operators were convicted in 2020. Closely tied to the larger PlusToken scheme.
A 2016–2018 MLM scheme that the SEC says raised 82,000+ BTC (~$295M at the time) from 100,000+ investors on the false promise of a trading 'bot'. The SEC charged founder Douver Braga and promoters; Braga was extradited to the U.S. and faces criminal charges.
A global multi-level-marketing 'crypto mining/trading' club (2015–2020) that the U.S. DOJ says was a ~$100M Ponzi scheme. Members saw fake on-screen 'profits' they could not withdraw. Founders and promoters pleaded guilty; co-founder Rodriguez was sentenced to 12 years.
A multi-level-marketing scheme based in Bulgaria that sold a cryptocurrency with no underlying blockchain or value. Per the U.S. DOJ, victims invested more than $4 billion. Co-founder Ruja Ignatova ('Cryptoqueen') remains a fugitive.
A ~$147M pyramid scheme (2013–2015) by U.S. Fine Investment Arts (USFIA) that sold 'Gem Coins' — a digital currency falsely claimed to be backed by billions in amber and gemstones from nonexistent mines. Founder Steve Chen pleaded guilty and was sentenced in 2021 to 10 years.
A Houston-based operation that the SEC says was a $300M Ponzi scheme targeting 40,000+ predominantly Latino investors with promises of 15–100% returns from crypto and forex trading. The SEC halted it in 2022 and later charged 17 network leaders; founder Mauricio Chavez pleaded guilty to wire fraud.
A multi-level-marketing 'crypto and forex' investment program that the SEC says raised more than $650M from over 200,000 investors (2019–2023), many in the Haitian-American community. The SEC charged founders Cynthia and Eddy Petion in 2024, alleging a fraudulent Ponzi/pyramid scheme.
Brazilian national who the SEC says created and controlled Trade Coin Club, a crypto MLM that raised ~82,000 BTC (~$295M) from 100,000+ investors as a Ponzi scheme. Charged civilly by the SEC (2022) and criminally; later extradited to the U.S.
Indian entrepreneur who founded GainBitcoin / GB Miners, described by police as one of India's largest crypto Ponzi schemes (~$300M+, collecting an estimated 80,000+ BTC). Arrested in 2018; he died in January 2022 before the cases concluded.
Co-founder of NovaTech with his wife Cynthia Petion. The SEC alleges the couple operated NovaTech as a $650M crypto/forex Ponzi and pyramid scheme. Charged civilly by the SEC in 2024.
Co-founder and self-described CEO ('Reverend CEO') of NovaTech. The SEC alleges she and her husband ran NovaTech as a $650M crypto/forex Ponzi and pyramid scheme and siphoned millions for themselves. Charged civilly by the SEC in 2024.
