Federation Network has collapsed for a third time.

On October 9th the Ponzi scheme advised investors it was disabling withdrawals.

Instead of just being honest about running out of new investment to pay withdrawals (again), Federation Network has dressed up its third collapse as a “temporary pause” with an “audit” exit-scam.

Dear Community,

To ensure the integrity and security of our platform, we’re implementing several critical updates. These include:

– Team Restructuring: We’re reorganizing our team to enhance efficiency and focus on security.

– Comprehensive Audit: We’re conducting a thorough audit of our website code and database to identify and address any vulnerabilities.

Temporary Pause of Withdrawals

As part of our commitment to security, we’ve decided to temporarily pause withdrawals. This will allow us to complete the audit and identify any fraudulent accounts.

Federation Network advises it “anticipate[s] withdrawals will be reactivated within 3 weeks”. If that happens, it will mark the fourth reboot of Federation Network.

The first iteration of Federation Network Ponzi launched in mid 2023. It was fronted by founder and Sarah Cohen, an actor who is long gone.

Federation Network’s first Ponzi collapsed in May 2024. A reboot on a second domain was immediately announced, only to collapse shortly thereafter.

In August 2024 Federation Network rebooted for a third time on a third website domain as Federation Bank. Federation Bank collapsed on October 9th, with an unnamed fourth reboot yet to launch “within 3 weeks”.

As of September 2024, Federation Bank website traffic was too low for SimilarWeb to track.