About a month ago “ibuum Team” sent out an email urging promoters to withdraw from their then active payment processor;

You have only 2 DAYS LEFT to withdraw your current commission balance before our payment system upgrade.

TO BE SPECIFIC: You only need to withdraw your funds from our current payout partner’s e-wallet.

If your funds are still showing in your ibuumerang back office, you do not need to do anything.

We are working to transition to our new payout partner as quickly after the 18th as possible.

The payment processor was i-Payout. A visit to iBuumerang’s i-Payout merchant page confirms the account has been disabled:

This was on or around April 18th. To date iBuumerang withdrawals remain disabled.

iBuumerang started off as a discount travel MLM company back in 2019. A forex trading scheme named Ellev8 was later added, promoting fraud warning from regulators.

Prior to iBuumerang owner and CEO Holton Buggs had been getting into crypto fraud. At the direction of Buggs, iBuumerang affiliate promoters were inevitably funneled into MLM crypto Ponzis.

The CFTC caught up with Buggs in October 2024, alleging Buggs was a top promoter of The Traders Domain Ponzi.

i-Payout appears to have decided to cease providing iBuumerang with processor services a few months later. Although not confirmed, it’s possible Buggs’ regulatory issues is the reason i-Payout pulled the plug.

iBuumerang losing its i-Payout processor account without prior warning naturally prompted concern. iBuumerang’s VP of Business Development, Terrence Gray, attempted to address concerns on an April 19th corporate webinar.

When will payments resume? So, I love that question. Thank you.

So now we’re switching platforms, it’s probably gonna take a week or two … tomorrow is the 20th. Tomorrow is the day that we normally pay the monthly commissions for the previous month.

Gray goes on to state questions about iBuumerang payments made him “want to throw my phone across the room”.

If you left your money in the current platform, no problem. When we load up the new platform and you log into your account, that money that was there will be there.

Gray’s timeline of “a week or two” from April 19th came and went. It wasn’t until May 13th that iBuumerang affiliates received an update;

We’re in the process of switching to a new payout provider.

Our original goal was to complete this transition by the 20th of this month. However, as with any upgrade of this scale, it’s taking a bit longer than expected to finalize all the moving parts.

In light of iBuumerang’s May payday being on the 20th, iBuumerang stated;

Withdrawals will be temporarily paused while we complete the transition to the new provider.

In a digital age, migration from one payment processor to another is pretty straight forward. It doesn’t take over a month. A decent IT team could probably make a planned transition within an hour. Maybe a few hours if something went wrong.

To me it sounds like iBuumerang is having issues finding a new processor. And although they are representing they have one, this is just stalling for time.

In addition to now not being able to withdraw earned commissions till June 20th or so, perhaps a greater concern for iBuumerang affiliates is who is handling their money.

High-risk clients, which given Buggs’ regulatory issues iBuumerang likely is, tend to gravitate to shady processors. Not by choice, but because nobody else will take them on.

As more time passes without a new iBuumerang processor being named, the risk to funds increases.

Another point of interest is Buggs being subject to an asset-freeze in his CFTC The Traders Domain Ponzi case.

After initially opposing the injunction with shameless arguments, Buggs consented to an injunction in January 2025.

Whether any iBuumerang related assets have been frozen remains unclear. Ditto whether i-Payout has had any contact with The Traders Domain Receiver in relation to iBuumerang funds.

For now we know iBuumerang will miss its May 20th commission run, marking a month of withheld commissions. Pending an update on or around June 20th, stay tuned.