My 24 Hour Income Ponzi collapses, plans reinvestment reboot
Some things in the MLM underbelly never change.
When a resident Ponzi scheme collapses, rather than admit the scam ran out of funds, cliched excuses about hackers and funds being frozen are trotted out.
My 24 Hour Income was an adcredit Ponzi scheme promising ROIs of up to 130% on $5 to $75 investments. The scam launched in July and by late November had collapsed.
Drew Burton, the owner of My 24 Hour Income, blamed the first collapse on hackers. He claims hackers stole 800 BTC from the system ($769,384 USD).
Burton eventually re-opened the site only to find affiliates pile on the withdrawal requests with no new investment coming in.
With Christmas looming, My 24 Hour Income went down again after a few days has been “under maintenance” ever since.
Burton has been promising a reboot for most of the month, with a new version of My 24 Hour Income now set to go live in a few days.
Burton’s plans for the second incarnation of My 24 Hour Income strongly focuses on trapping invested affiliate funds in the system.
This is done by mandatory reinvestment when affiliates put in withdrawal requests.
Specifically, in order to withdraw funds a My 24 Hour Income affiliate will be required to reinvest 90% of the withdrawal amount.
This reinvestment has to be new money, it can’t be rolled over from an affiliate’s My 24 Hour Income balance (that money doesn’t actually exist).
Burton claims once “the system is built back up” this ratio will be adjusted to a 40% mandatory reinvestment ratio.
Anyone with half a brain should be able to see that the fundamental problem of paying out more money than is deposited remains.
Whether you force affiliates to reinvest or hope they do it voluntarily, when you’re paying out more than 100% of what is deposited, sooner or later you’re going to run out of money.
That’s all that happened in original My 24 Hour Income, with Burton now trying to put off the inevitable again for just a little longer.
As it stands Burton is sitting on a pile of invested funds. My 24 Hour Income affiliates who didn’t get their money out (most of them) are eager to withdraw as much as they can.
Dollar for dollar that’s impossible, as Burton and other My 24 Hour Income affiliates have already withdrawn most of the money.
On top of their initial losses, affiliates are now expected to cough up even more if they want to access their money.
In anticipation of these affiliates draining whatever funds are left, Burton has preemptively banned them.
All members that have been complaining non-stop that the site is under maintenance or calling my24 a scam…
We have blocked your accounts for 3 months.
The bottom line is what little funds My 24 Hour Income might have left isn’t going to last long.
Recycled funds from an existing affiliate-base will only put off the inevitable for so long and, like the original model, will see My 24 Hour Income once again collapse.