Alyx Union fails to provide ownership or executive information on its website.

Alyx Union’s website domain (“alyxunion.com”), was privately registered on October 30th, 2023.

Web access to Alyx Union’s root domain is disabled. Instead the MLM opportunity is hosted on a “dapp” subdomain.

At time of publication this is nothing more than an affiliate sign up page:

Despite only existing for a few months, Alyx Union held a staged “year end celebration event” in December.

The event was held in Chinese at the Regal Airport Hotel in Hong Kong…

…and featured a bunch of token white guys playing fictional executives.

The ringleader of the bunch is CEO “Ryan Stasser”, played by this guy:

Naturally Strasser doesn’t exist outside of Alyx Union marketing. This includes a repurposed Twitter profile, full of retweet spam backdated to 2021.

And a fake LinkedIn profile:

I wasn’t able to pin down a name but did tie whoever is playing Strasser to China.

What you’re looking at there is a promo photo on A Heart For China’s website.

A Heart For China is a Shenzen based charity run by Belgian national Ronny Verdoodt. The guy playing Ryan Strasser appears to have volunteered at A Heart for China circa 2017.

The Chinese scammers actually running Alyx Union are likely based out of Hong Kong or Singapore.

Dubai, the MLM crime capital of the world, is another possibility.

BehindMLM’s guidelines for Dubai are:

  1. If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
  2. If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.

If you want to know specifically how this applies to Alyx Union, read on for a full review.

Alyx Union’s Products

Alyx Union has no retailable products or services.

Affiliates are only able to market Alyx Union affiliate membership itself.

Alyx Union’s Compensation Plan

Alyx Union affiliates invest $100 or more in tether (USDT).

This is done on the promise of passive 0.3% daily return. If an Alyx Union agrees to lock up their funds for 100 days, this increases to up to 1.3% a day.

Alyx Union pays returns in aelf (ELF), an obscure shitcoin that pumped and dumped back in 2018.

ELFU as “aelf union” is also cited. I believe this is a shitcoin tied to Alyx Union.

Alyx Union also allows affiliates to invest various cryptocurrencies into a convoluted staking scheme:

Returns based on arbitrary payouts scale down from 16% to 1% over an indeterminate amount of time.

The MLM side of Alyx Union pays on recruitment of affiliate investors.

Alyx Union Affiliate Ranks

There are ten affiliate ranks within Alyx Union’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. V0 – sign up as an Alyx Union affiliate and invest $100
  2. V1 – invest $500, recruit two V0 or higher ranked affiliates and generate at least $30,000 in total downline investment
  3. V2 – invest $1000, recruit two V1 or higher ranked affiliates and generate at least $100,000 in total downline investment
  4. V3 – invest $2000, recruit two V2 or higher ranked affiliates and generate at least $300,000 in total downline investment
  5. V4 – invest $4000, recruit two V3 or higher ranked affiliates and generate at least $800,000 in total downline investment
  6. V5 – invest $10,000, recruit two V4 or higher ranked affiliates and generate at least $2,000,000 in total downline investment
  7. V6 – invest $20,000, recruit two V5 or higher ranked affiliates and generate at least $5,000,000 in total downline investment
  8. V7 – invest $30,000, recruit two V6 or higher ranked affiliates and generate at least $10,000,000 in total downline investment
  9. V8 – invest $40,000, recruit two V7 or higher ranked affiliates and generate at least $40,000,000 in total downline investment
  10. V9 – invest $50,000, recruit two V8 or higher ranked affiliates and generate at least $100,000,000 in total downline investment

Matching Bonus

Alyx Union pays a matching bonus via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Alyx Union caps payable unilevel team levels at five.

The Matching Bonus is paid as a percentage of daily returns paid across these five levels as follows:

  • level 1 (personally recruited affiliates) – 12% match
  • level 2 – 8% match
  • level 3 – 5% match
  • level 4 – 3% match
  • level 5 – 2% match

Rank Achievement Bonus

Alyx Union affiliates receive a 20% Rank Achievement Bonus upon qualifying at V2 or higher.

This 20% is paid out at each V2 or higher rank as a percentage personally recruited affiliate investment.

Note that the Rank Achievement Bonus is only paid on downline affiliates of the same rank.

Community Reward

Alyx Union pays a Community Reward to V1 and higher ranked affiliates.

Enjoy up to 9 different levels of ranking reward based on your personal staking, direct referrals and team sales.

  • V1 ranked affiliates receive a 10% Community Reward
  • V2 ranked affiliates receive a 20% Community Reward
  • V3 ranked affiliates receive a 30% Community Reward
  • V4 ranked affiliates receive a 40% Community Reward
  • V5 ranked affiliates receive a 50% Community Reward
  • V6 ranked affiliates receive a 60% Community Reward
  • V7 ranked affiliates receive a 70% Community Reward
  • V8 ranked affiliates receive an 80% Community Reward
  • V9 ranked affiliates receive a 90% Community Reward

Although not explicitly clarified, this appears to be an accumulated percentage payout from the moment each rank is qualified for.

Joining Alyx Union

Alyx Union affiliate membership is free.

Full participation in the attached income opportunity requires a minimum $100 investment.

Alyx Union solicits investment in various cryptocurrencies.

Alyx Union Conclusion

Alyx Union is a pretty standard Boris CEO MLM crypto Ponzi scheme. It launched a few months after SCF collapsed and follows the exact same playbook (SCF was a short-lived reboot of Fintoch).

I wouldn’t be surprised if the same Chinese organized crime elements were behind both scams.

Alyx Union affiliates invest cryptocurrency. Alyx Union uses those funds to pay off existing investors. Those investors then rely on subsequent investment to steal.

This is your classic Ponzi scheme. And with nothing marketed to or sold to retail customers, the MLM side of Alyx Union is a pyramid scheme.

Alyx Union confirms as much on their website:

Disclaimer: ALYX Union is not available in the United States and certain specific U.S. territories.

Passive investment schemes aren’t illegal in the US. The US however is the most active country regulating securities and wire fraud.

Any time you see an MLM company exclude the US from regulated legal activity, it’s because they’re running a scam.

To operate legally in the US, Alyx Union would need to register with the SEC and file audited financial reports. This is the only way to prove they aren’t running a Ponzi scheme.

Because Alyx Union is a Ponzi scheme, it’s easier for them to just block US residents. Note that these legal obligations exist in other countries too.

As of December 2023, SimilarWeb tracked top sources of Alyx Union website traffic as Italy (44%), Chile (26%), Canada (4%), South Africa (4%) and Kazakhstan (4%).

Securities are regulated in each of these countries. Any by failing to register with financial regulator, Alyx Union is operating illegally in all of them.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Alyx Union of ROI revenue, eventually prompting a collapse.

The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.