bitclub-network-logoThere is no information on the BitClub Network website indicating who owns or runs the company.

The BitClub Network website domain (“bitclubnetwork.com”) was registered on the 22nd of July 2014, however the domain registration is set to private.

The BitClub Network website itself is being hosted out of the Netherlands, without more information however it’s not clear whether this is also where the owner(s) of the company are based out of.

As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The BitClub Network Product Line

BitClub Network has no retailable products or services.

Affiliates market membership to the company itself ($99) and then invest and encourage others to invest in three “mining pools”.

The BitClub Network Compensation Plan

The BitClub Network compensation plan revolves around affiliates investing in three “mining pools”, each of which pays out a daily ROI for 1000 days.

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  • Mine #1 costs $500 a share and pays out a daily ROI for 1000 days, subject to 50% mandatory re-investment
  • Mine #2 costs $1000 a share and pays out a daily ROI for 1000 days, subject to 40% mandatory re-investment
  • Mine #3 costs $2000 a share and pays out a daily ROI for 1000 days, subject to 30% mandatory re-investment

Binary Referral Commissions

Referral commissions on investments made by recruited affiliates are paid out through a binary compensation structure.

A binary compensation structure places an affiliate at the top of a binary team, with two positions directly under them:

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In turn, these two positions branch out into another two positions and so on and so forth down a theoretical infinite number of levels.

In BitClub network, each filled binary position represents an investment made by an affiliate’s down or upline.

Commissions in the binary are paid out according to the pairing of investments on either side of the binary using a 1:1 ratio:

  • a pairing of $500 investments equals 1 point
  • a pairing of $1000 investments equals 2 points
  • a pairing of $2000 investments equals 4 points

Each time an affiliate generates 20 points from their binary a $500 commission is paid out.

To qualify for binary commissions, an affiliate must personally recruit two affiliates. Also note that binary commissions are capped at $500 daily (one commission payout).

Pass-up Referral Commissions

In addition to binary referral commissions, there’s also a pass-up element to the BitClub Network compensation plan.

An affiliate’s first two recruits pay a straight 15% referral commission on any investments they make. Any commissions generated by affiliates recruited by these two affiliates are passed to the recruiting affiliate’s upline (the affiliate who recruited them).

An affiliate’s 3rd to 5th recruited affiliates pay 20% referral commission on any investments made. A 5% referral commission is also earnt on investments made by the first two affiliates they recruit, the first two affiliates those affiliates recruit and so on and so forth.

An affiliate’s 6th to 8th recruited affiliates pay a 25% referral commission on any investments made. A 10% referral commission is also earnt on investments made by the first two affiliates they recruit and 5% on the third, fourth and fifth affiliates recruited.

As with the referral commission paid out on the 3rd to 5th recruited affiliates, these referral commissions extend down a theoretical infinite depth.

The 9th affiliate recruited pays out a 27.5% direct referral commission on any investments made. Subsequently a 12.5% referral commission is paid on investments made by the first two affiliates they recruit. 7.5% is paid on the 3rd to 5th recruited affiliates and 2.5% on the 6th to 8th.

Once again, these referral commission extend down and are passed up by any recruited affiliates in the 9th recruited affiliate’s downline.

Pass-up Bonus

When a recruited affiliate recruits nine affiliates, the affiliate who recruited them is paid an additional 2.5% referral commission on investments made by any affiliates the 9th recruited affiliate recruits.

Once again, this bonus is paid out on investments made by any affiliates in this particular downline who also reach the nine affiliates recruited qualification criteria.

Joining BitClub Network

Affiliate membership to BitClub Network is $99.

In order to earn a commission an investment in one of the “mining pools” is also required, adding an additional minimum cost of $500 to $2000 to BitClub Network affiliate membership.

Conclusion

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Set to continue the notorious reputation the Bitcoin MLM niche has carved out for itself is BitClub Network.

Affiliates join for $99 and then invest in “shares” for between $500 to $2000 a pop. Investments are made on the expectation of a 1000 day >100% ROI, which is paid out of new investor funds.

Whether the funds are converted to Bitcoin or otherwise is irrelevant, with BitClub Network preserving the Ponzi requirement of new affiliate funds being used to pay off existing investors.

Affiliate funds are funds regardless of the currency used. And of course nothing is being marketed or sold to retail customers.

At the very least, it’s a certainty that BitClub Network are accepting investments from affiliates on the expectation of a >100% ROI. Whether or not the scheme has registered itself with the SEC is unclear. Given the offshore domain registration with a Panama-based provider, I’d say it’s unlikely.

BitClub Network is an offshore scheme seeking to fleece investors under the guise of “let us explain Bitcoin mining to you”, with the mining itself (if any actually exists) having little to nothing to do with the flow of funds within the scheme.

Whilst the owner(s) of BitClub Network are for now are sticking to the shadows, there’s evidence that factions of the Zeek Rewards Ponzi scheme might be behind it.

Under the YouTube account “BitClub Network Pro”, old hand T. LeMont Silver is marketing himself as the “top leader” in the scheme:

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Another Zeek Ponzi pimp, Dirson E. Jimenez (aliases “strosdegoz”, “Alan Santana” and “manolo”), is also on board as an early adopter:

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T. LeMont Silver is currently being sued by the Zeek Rewards Receivership for his part in the stealing of funds from victims of the scheme. Silver is listed as one of the top net-winner investors of the scheme, with both his and his wife’s name appearing on a list of Zeek Rewards net-winners based out of the US.

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Upon learning the Receivership would be going after Zeek Rewards top affiliates, Silver fled to the Dominican Republic. After lying low after the collapse of JubiMax, I suppose BitClub Network is supposed to be his return to the MLM Ponzi arena.

Jimenez doesn’t appear to be a US citizen, so as of yet hasn’t appeared on any lists compiled by the Zeek Rewards Receivership. He did pretty well for himself in the scheme though and, if he hasn’t already settled with the Receivership, will likely be a target in future litigation once the Receivership initiates proceedings against Zeek’s non-US affiliates.

Some might write off Jimenez and Silver’s early involvement in BitClub Network as a co-incidence, but I’d be willing to bet the names of those running the scheme are a part of the same collective.

Even with the prospect of having to pay back the funds these Ponzi pimps have built their respective fortunes on, it seems the nature of the beast remains the same.

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BitClub Network’s marketing videos are targeted at people who might be wondering what Bitcoin and Bitcoin mining are about. Unfortunately, other than acting as a front for new affiliate funds to be transferred over to T. LeMont Silver’s and Dirson Jimenez’s bank accounts however, neither have anything to do with the scheme.

Bitcoin mining on its own is perfectly legitimate, but not when it’s used as a cover for what is otherwise just another run-of-the-mill Ponzi/pyramid hybrid.