Crypto Crown provides no information on its website about who owns or runs the company.

Crypto Crown’s website domain (“cryptocrown.vip”), was privately registered on December 20th, 2021.

As per Crypto Crown’s website Terms and Conditions, the company identifies itself as

Crypto Crown Inc. (the “Corporation”), a Canadian Corporation regulated by the Canada Business Corporations Act.

The corporate address provided belongs to a UPS store in Ontario.

A search for Crypto Crown Inc. does in fact reveal a registered Canadian incorporation.

Basic incorporation is typically meaningless for MLM due-diligence, but it does give us the names Eric and Stephanie Madsen.

Although it’s not linked from its website, Crypto Crown has an official YouTube channel.

On that channel you’ll find various corporate presentations, hosted by Crypto Crown co-owner Andrew Montague.

Montague introduces Crypto Crown’s other co-owner as someone else Madsen. I can’t quite make it out but it’s definitely not Eric or Stephanie (Jens Madsen?).

Whoever it is they speak later in the video and are male.

I wasn’t able to find anything on Andrew Montague with respect to Crypto Crown. This raises the question whether Andrew Montague is an alias too.

I also wasn’t able to find anything further on the Madsens. When combined with the UPS virtual address, this raises red flags in and of itself.

As always, if an 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.

Crypto Crown’s Products

Crypto Crown has no retailable products or services.

Affiliates are only able to market Crypto Crown affiliate membership itself.

Crypto Crown’s Compensation Plan

Crypto Crown affiliates invest $500 on the promise of monthly returns:

  • 18.5% for the first six months
  • 22.5% for the next six months

January is excluded, making the total investment term on each $500 USDT investment thirteen months.

At the end of thirteen months, the initial $500 investment is returned.

Crypto Crown groups $500 investments into “groups” of 480.

If 95% of investments in a group are reinvested, all new investment contracts within that group receive a boosted 22.5% ROI for the second thirteen-month term.

$50 is charged on top of each $500 investment to fund referral commissions, paid through Crypto Crown’s MLM opportunity.

The MLM side of Crypto Crown pays on investments made by and returns paid to recruited affiliates.

Referral Commissions

Crypto Crown pays referral commissions down two levels of recruitment (unilevel).

In the diagram above, green represents level 1. These are personally recruited affiliates.

The third line (blue) represents level 2. These are affiliates recruited by your level 1 affiliates.

There is no limit to the number of affiliates you can recruit, meaning your green line can expand to a theoretically infinite width across.

For each $550 USDT investment made on levels 1 or 2 of your unilevel team, a $25 USDT referral commission is paid out.

Residual Commissions

Crypto Crown also pays residual commissions down two levels of recruitment.

Residual commissions are paid as a percentage of monthly returns paid on each $550 USDT investment:

  • returns paid across the first six months of investment pay a monthly $4.63 residual commission
  • returns paid across the next six months of investment pay a monthly $6.25 residual commission

Joining Crypto Crown

Crypto Crown affiliate membership appears to be free.

Full participation in the attached income opportunity requires a minimum $500 investment. This is attached to a $550 fee, bringing the total minimum cost of participation to $550.

Crypto Crown solicits investment in tether (USDT) and USD Coin (USDC).

Crypto Crown Conclusion

Crypto Crown represents it takes invested cryptocurrency and feeds it into “the trader”.

This scheme is dubbed “Royalty Trading” and, as per the slide above, is performed by a “licensed, incorporated” trader with a “proven track record”.

This is elaborated on further into the company’s official marketing presentation:

For all the talk of transparency, Crypto Crown fails to disclose any verifiable information about their trader.

Despite this, the company claims the trader

  • is “credible and licensed”
  • has a “proven track record”
  • is “high performance”
  • has been in business for 6 years and
  • is Canadian based

From a marketing angle alone, Crypto Crown’s lack of disclosure is a potential violation of the FTC Act.

But let’s get into the far more serious regulatory violation here: securities fraud.

Crypto Crown solicits $500 investments on the promise of passive monthly returns. This constitutes a securities offering and requires Crypto Crown to register with financial regulators.

Crypto Crown Inc. as a basic corporation is not the equivalent of registering with financial regulators.

In addition to being a requirement to operate legally in Canada and elsewhere, registering with financial regulators would also see Crypto Crown provided audited financial reports.

This is the only way to verify Crypto Crown is actually trading.

Lending itself to Crypto Crown not paying returns as a result of trading are the company

  1. committing securities fraud by not registering with financial regulators;
  2. failing to provide regulators and consumers verifiable information about its trading activities;
  3. failing to provide consumers with any information as to company ownership and their history with respect to trading;
  4. committing securities fraud in cryptocurrency, making recovery for eventual victims of the scheme practically impossible.

Crypto Crown’s trading claims also fail the Ponzi logic test.

Crypto Crown claims its trading has been successful for 6 years with a proven track record. A modest amount invested and compounded over six years at 22.5% a month turns into a fortune.

Who on Earth is selling access to that amount of money for just $500 a pop?

As it stands the only verifiable source of revenue entering Crypto Crown is new investment.

Using new investment to pay monthly returns makes Crypto Crown a Ponzi scheme. With no retail offering to speak of, the MLM side of the business adds an additional pyramid layer.

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

This will leave Crypto Crown unable to pay monthly returns, eventually leading to a collapse.

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