LedgerBlock Review: Metaverse “staking” MLM crypto Ponzi
LedgerBlock operates in the MLM cryptocurrency niche.
LedgerBlock operates from the domain “ledgerblock.net”, privately registered on January 13th, 2023.
On January 12th, LedgerBlock uploaded an “International Key Leader’s Summit” promo to its official YouTube channel.
The individuals above identify themselves as “Romeo and Amanda”.
If LedgerBlock posting a leader’s summit video before its website domain was registered strikes you as odd, that’s because it is.
Note the “HyperLedger” logo in the top right of the above video. I believe LedgerBlock might have previously launched under this name.
LedgerBlock’s YouTube channel was created in October 2022, so HyperLedger’s launch would have been brief before switching over to LedgerBlock.
Whatever the story is, LedgerBlock appears to have held a marketing event in Malaysia on or around January 15th, 2023.
At the event LedgerBlock revealed CEO “Andrew James”:
Naturally James doesn’t exist outside of LedgerBlock’s marketing. That’s because he’s an actor, played by UK national and Malaysian resident Paul Sykes.
When he’s not moonlighting as a Boris CEO, Sykes runs his consultancy firm Humateca.
From Humateca’s website;
We partner with blochain [sic] businesses, one of our key strategic partners is Blockworq.io, a Malaysian based Blockchain solutions provider.
Sykes is also Blockworq’s Chief Marketing Officer (click to enlarge):
From what I’ve been able to piece together, Sykes transitioned from legitimate business interests to cryptocurrency in 2021.
Sykes’ Blockworq executive role came before Humateca, which was founded on or around September 2022.
What I’m not clear on is whether there’s any links between Blockworq and LedgerBlock.
What is clear is Paul Sykes is a Boris CEO playing Andrew James.
Executive co-conspirators on LedgerBlock’s website include Adam Lester and Dato Asmawey Bin Hussain.
Ironically, Hussain is cited as President of Crime Prevention & Awareness Board of Malaysia.
Be it these charlatans or someone else, whoever is running LedgerBlock is obviously based out of Malaysia.
Dubai, the MLM crime capital of the world, is another possibility:
Promoters are running around claiming LedgerBlock is holding an event in Dubai in May. At the event LedgerBlock will launch an “avatar” shitcoin and in-house crypto exchange.
On the corporate side of things, LedgerBlock cites itself as “SMB LedgerBlock China Group”:
Oh and just in case Paul Sykes tries to pull the ol’ “they stole my photo!” ruse, here he is playing Andrew James in-person at LedgerBlock’s January 2023 marketing event:
As of February 2023, SimilarWeb ranks top sources of traffic to LedgerBlock’s website as Indonesia (47%), Malaysia (21%, down 61% month on month), Sri Lanka (20%), Brazil (8%) and the UAE (3%).
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.
LedgerBlock’s Products
LedgerBlock has no retailable products or services.
Affiliates are only able to market LedgerBlock affiliate membership itself.
LedgerBlock’s Compensation Plan
LedgerBlock affiliates invest 50 to 20,000 tether (USDT). This is done on the promise of a monthly return.
LedgerBlock’s monthly returns starts at 0.7% a day. This rate increases by 0.1% a month until 3% a day is reached.
To go from 0.7% a day to 3% a day takes 44 months (3.6 years).
The MLM side of LedgerBlock pays on recruitment of affiliate investors.
LedgerBlock Affiliate Ranks
There are five affiliate ranks within LedgerBlock’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as a LedgerBlock affiliate
- V1 – invest at least 100 USDT and generate at least 1000 USDT in downline investment (can be self-funded)
- V2 – maintain a 100 USDT investment and have three V1 or higher ranked affiliates in your downline
- V3 – maintain a 100 USDT investment and have three V2 or higher ranked affiliates in your downline
- V4 – invest at least 1000 USDT and have three V3 or higher ranked affiliates in your downline
- V5 – invest at least 3000 USDT and have three V4 or higher ranked affiliates in your downline
- V6 – invest at least 5000 USDT and have three V5 or higher ranked affiliates in your downline
- V7 – invest at least 7000 USDT and have three V6 or higher ranked affiliates in your downline
- V8 – invest at least 9000 USDT and have four V7 or higher ranked affiliates in your downline
- V9 – invest at least 11,000 USDT and have four V8 or higher ranked affiliates in your downline
- V10 – invest at least 13,000 USDT and have four V9 or higher ranked affiliates in your downline
- V11 – invest at least 15,000 USDT and have four V10 or higher ranked affiliates in your downline
- V12 – invest at least 20,000 USDT and have five V11 or higher ranked affiliates in your downline
Note that to qualify towards rank qualification, ranked recruited affiliates must be in separate unilevel team legs.
Referral Commissions
LedgerBlock affiliates earn a daily 0.5% match on USDT invested by personally recruited affiliates.
Leadership Rewards
Leadership Rewards see ranked LedgerBlock affiliates earn a daily bonus percentage of USDT invested by their downline.
LedgerBlock pays Leadership Rewards 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.
LedgerBlock caps how many unilevel team levels Leadership Rewards are paid on based on rank:
- V1 ranked affiliates earn a 0.3% Leadership Reward rate across five levels
- V2 ranked affiliates earn a 0.5% Leadership Reward rate across ten levels
- V3 ranked affiliates earn a 0.7% Leadership Reward rate across fifteen levels
- V4 ranked affiliates earn a 0.9% Leadership Reward rate across twenty levels
- V5 ranked affiliates earn a 1.1% Leadership Reward rate across twenty levels
- V6 ranked affiliates earn a 1.3% Leadership Reward rate across twenty levels
- V7 ranked affiliates earn a 1.5% Leadership Reward rate across twenty levels
- V8 ranked affiliates earn a 1.6% Leadership Reward rate across twenty levels
- V9 ranked affiliates earn a 1.7% Leadership Reward rate across twenty levels
- V10 ranked affiliates earn a 1.8% Leadership Reward rate across twenty levels
- V11 ranked affiliates earn a 1.9% Leadership Reward rate across twenty levels
- V12 ranked affiliates earn a 2% Leadership Reward rate across twenty levels
Matching Bonus
The Matching Bonus pays out a percentage of daily returns paid to recruited downline affiliates.
- V1 ranked affiliates earn a 1% Matching Bonus down five unilevel team levels
- V2 ranked affiliates earn a 1% Matching Bonus down ten unulevel team levels
- V3 ranked affiliates earn a 1% Matching Bonus down fifteen unilevel team levels
- V4 ranked affiliates earn a 2% Matching Bonus down twenty unilevel team levels
- V5 ranked affiliates earn a 2% Matching Bonus down twenty-five unilevel team levels
- V6 ranked affiliates earn a 2% Matching Bonus down thirty unilevel team levels
- V7 ranked affiliates earn a 2% Matching Bonus down thirty-five unilevel team levels
- V8 ranked affiliates earn a 3% Matching Bonus down forty unilevel team levels
- V9 ranked affiliates earn a 3% Matching Bonus down forty-five unilevel team levels
- V10 ranked affiliates earn a 3% Matching Bonus down fifty unilevel team levels
- V11 ranked affiliates earn a 3% Matching Bonus down fifty-five unilevel team levels
- V12 ranked affiliates earn a 3% Matching Bonus down sixty unilevel team levels
Global Profit Pool
LedgerBlock takes 1% of daily company-wide investment and placed it into the Global Profit Pool.
The Global Profit Pool is paid out equally among V12 ranked affiliates.
Joining LedgerBlock
LedgerBlock affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $50 investment in tether (USDT).
LedgerBlock Conclusion
LedgerBlock’s marketing ruse is a bunch of blockchain mEtAvErSe waffle:
What does any of that have to with LedgerBlock’s MLM opportunity?
Absolutely nothing.
By offering daily passive returns, LedgerBlock’s MLM opportunity constitutes a securities offering.
LedgerBlock fails to provide evidence it has registered with financial regulators, in Malaysia or anywhere else in the world.
This means that at a minimum, LedgerBlock is commtting securities fraud.
Why would LedgerBlock opt to commit securities fraud?
Because LedgerBlock is running a simple 3% a day crypto Ponzi scheme, dressed up in staking related terminology.
The MLM side of the business financially incentivizes affiliate investor recruitment, adding an additional pyramid layer to the scheme.
LedgerBlock slow-dripping its 3% a day ROI rate serves two primary purposes:
- it further ensures that early investors will drain subsequent investment; and
- disincentivizes withdrawals lest the full amount be withdrawn and the daily ROI rate timer be reset.
As with all MLM Ponzi schemes, once affliate recruitment dries up so too will new investment.
This will starve LedgerBlock of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
LedgerBlock’s exit-scam of choice appears to be “LedgerCoin”:
No idea if this is the precursor to “avatar coin” or something else.
Either way it seems once LedgerBlock has collapsed, investors will be left bagholding one or more worthless Ponzi shitcoins.
Update 4th May 2023 – LedgerBlock has collapsed.
LedgerBlock disabled withdrawals in Sri Lanka in mid April. Other countries are expected to follow shortly.
This mean scam.
I have open account with ladgerblock on 26 March another one on 17 April .I have withdrawal 45 USD three times only invested 4100 USD.
It is a very helpless situation made to just join people like us. Pls introduce a mechanism to us also.
Initial join people including team leaders made. Huge profits. We did not do anything fraudulent. We still studying your system.
Pls understand our situation and introduce a mechanism for us this is very unfair. you have stop withdrawal to srilanka also.
Pls refund our capital
Probably want to study investment schemes before you invest.
LedgerBlock is a Ponzi scheme. The reason “leaders” made “huge profits” is because they stole your money. Sorry for your loss.
Hi ledgerBlock, It is more than half a month now. You have disabled our transfers and withdrawals. We have invested with you, because of the trust of monteCarlo company.
But without any considered reason you have blocked sri lankan accounts. There are around 220,000 accounts. This is very unfair. We are so disappointed about your actions.
Sri Lankans will definitely let the whole world know about this story from today. The same thing will happen in the near future to them.
The trust we Sri Lankans had about ledgerblock has been broken by your company.. I only invested money for this. So far no benefit has been taken. Because your company is not allowing us to get a benefit for about two weeks now.
I am very sorry for not giving any response even though I expected a fair solution for this.
Like this happened to our country, it can happen to other countries very soon.. everyone be careful..
This is scam… suddenly stop giving withdrawals after collecting money.
For Sri Lanka they have stopped payments since 16th April without any valid reason. No body from the company side answering.
When contact customer care service they ask to contact direct upliner. Upliner ask to contact customer care service. No body giving a solution.
Same will do for the other countries in near future.
Your money is gone but thanks for collapse update.
Y’all need to learn how to research companies before you invest.
Great analysis.
This is scam site dont invest your money in ledgerblock. withdrawals blocked in srilanka since april.
after latest update ledgerblock team want more money from subscribers to active their accounts again.
J Mark:
I have open account with ladgerblock on 26 March another one on 17 April. I have withdrawal 45 USD three times only invested 4100 USD.
It is a very helpless situation made to just join people like us. Pls introduce a mechanism to us also.
Initial join people including team leaders made. Huge profits. We did not do anything fraudulent.
We still studying your system. Pls understand our situation and introduce a mechanism for us this is very unfair. you have stop withdrawal to srilanka also.
Pls refund our capital
Don’t close the conversation, pls refund my capital. I don’t want your topup stories. pls refund our capital.
I don’t have money to toup. this is hard earn money.
The reason they were able to is they stole your money. Your capital is gone. This is basic Ponzi math.
Begging for your money back = spambin.
Other countries are now having all accounts suspended reason we don’t know.
When we joined they said capital not locked now UpTo 180 days you can dispute. Not fair at all.
You know the reason: LedgerBlock is a Ponzi scheme.
Ponzi scammers don’t give a crap about “fair”. Sorry for your loss.
The company have made promise to double our investment in just 2 months… I have invested in indian rupees 4 lakh.(4,00,000). Now we cannot access the site as well.
People like me who work barehand now all my saving gone. May God bless them alone and we wish they stayed alone in outside planets.
Thanks for the update. Confirmed, Ledger Block’s website is no longer accessible.