Following on from myWorld filing for bankruptcy in 2023 and being declared insolvent earlier this week, Lyconet has now also been declared insolvent.

For those confused by the dozens of shell companies associated with Lyoness, Lyconet was spun up as the MLM marketing side of the business after Lyoness regulatory warnings began over a decade ago.

It’s all effectively the same company run by the same founder but, officially, Lyoness/myWorld is the shopping side of the business and Lyconet the MLM opportunity.

As reported by Styria@Orf on August 6th;

The bankruptcy affects 43 employees and 565 creditors. Debts amount to €5.7 million, which, according to the AKV, are largely liabilities to suppliers.

The KSV stated that restructuring is not planned.

“AKV” and “KSV” are cited as “creditor protection associations in Austria, where Lyoness and its associated companies are registered.

A key differentiator between myWorld’s insolvency and that of Lyconet is the decision not to restructure.

This suggests Lyconet will be liquidated, leaving the future of the MLM opportunity up in the air.

Lyoness, myWorld and Lyconet are owned by Austrian national Hubert Freidl (right).

Freidl appears to have disappeared, having not been active on social media since September 2024.

The Lyoness scam began as an “accounting units” Ponzi scheme in 2003. Today myWorld more closely resembles a pyramid scheme.

Despite multiple countries certifying Lyoness was a Ponzi scheme and myWorld is a pyramid scheme, to date Austrian authorities have failed to take action.

News of myWorld’s and Lyconet’s insolvencies follows the arrest of Lyoness’ Managing Director in Spain last month.