My Blockchain Life Review: Crypto mining securities fraud
My Blockchain Life fails to provide any information about who owns or runs the company on their website.
In fact as I write this, My Blockchain Life’s website is nothing more than an affiliate login page with some testimonials.
No corporate address is provided, although My Blockchain Life does state it’s “operating worldwide (and) located in the USA”.
My Blockchain Life’s website domain (“myblockchainlife.com”) was privately registered on January 10th, 2020.
Further research reveals marketing videos on My Blockchain Life’s official Facebook page.
These videos are hosted by Glen Williams, who identifies himself as a co-founder and CEO of My Blockchain Life.
Williams’ LinkedIn profile places him in Ottawa, Canada. Whether My Blockchain has any actual physical presence in the US is unclear.
William’s LinkedIn profile reveals he was promoting ACN from 2007 to January 2020.
Williams foray into MLM cryptocurrency appears to date back to 2017 with BitConnect.
In response to BehindMLM reporting on US regulators cracking down on BitConnect, a reader going by Glen Williams suggested we had an “agenda”.
BitConnect collapsed a week later, causing over $2 billion dollars in losses.
Williams abandoned the Twitter account he used to promote BitConnect a month later.
Whether My Blockchain Life’s other co-founders were also BitConnect promoters is unknown.
Read on for a full review of My Blockchain Life’s MLM opportunity.
My Blockchain Life’s Products
My Blockchain Life has no retailable products or services, with affiliates only able to market My Blockchain Life affiliate membership itself.
My Blockchain Life’s Compensation Plan
My Blockchain Life’s compensation plan revolves around affiliates spending $3000 to purchase mining equipment, and then $1250 or $2000 for hosting.
Mining equipment is $3000 for either a Block X Miner or 77 TH/s BTC Miner.
Investment maturity periods are either $1250 for 500 days or $2000 for 1000 days.
Commissions and bonuses are paid when recruited affiliates purchase mining equipment and hosting.
My Blockchain Life pays commissions using sales volume as opposed to raw dollars invested/spent:
- $1250 hosting = 500 GV
- $2000 hosting = 1000 GV
- $3000 mining hardware purchase = 1000 GV
Note that My Blockchain Life pays all commissions and bonuses in bitcoin.
My Blockchain Life Affiliate Ranks
There are nine affiliate ranks within My Blockchain Life’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Prospector – recruit and maintain two affiliates (placed one on both sides of the binary team), generate 500 PV and 5000 GV in accumulated weaker binary team side volume
- Bronze – maintain two personally recruited affiliates and 500 PV, and generate 12,5000 GV in accumulated weaker binary team side volume
- Silver – maintain two personally recruited affiliates, generate 1000 PV and 25,000 GV in accumulated weaker binary team side volume
- Gold – recruit and maintain four affiliates (placed two on both sides of the binary team), generate 1000 PV and 100,000 GV in accumulated weaker binary team side volume
- Platinum – recruit and maintain six affiliates (placed three on both sides of the binary team), maintain 1000 PV and generate 500,000 GV in accumulated weaker binary team side volume
- Diamond – recruit and maintain eight affiliates (placed four on both sides of the binary team), maintain 1000 PV and generate 1,000,000 GV in accumulated weaker binary team side volume
- Vice Chairman – recruit and maintain ten affiliates (placed five on both sides of the binary team), maintain 1000 PV and generate 5,000,000 GV in accumulated weaker binary team side volume
- Chairman – recruit and maintain twelve affiliates (placed six on both sides of the binary team), maintain 1000 PV and generate 10,000,000 GV in accumulated weaker binary team side volume
- Global Chairman – maintain twelve personally recruited affiliates and 1000 PV, and generate 25,000,000 GV in accumulated weaker binary team side volume
PV stands for “Personal Volume” and is sales volume generated by personal purchases and that of personally recruited affiliates.
GV stands for “Group Volume” and is PV generated by an affiliate and their downline.
Note that in order to count towards qualification, recruited affiliates must have either purchased at least one miner and hosting plan.
MLM Commission Qualification
To qualify for MLM commissions a My Blockchain Life affiliate must be at the Prospector or higher rank.
My Blockchain Life pays referral commissions using 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.
My Blockchain life caps payable unilevel team levels at five.
Referral commissions are paid on on sales volume generated across these five levels as follows:
- 20% on level 1 (personally recruited affiliates)
- 10% on level 2
- 2.5% on levels 3 to 5
My Blockchain Life pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of every month My Blockchain Life tallies up new sales volume generated on both sides of the binary team.
Affiliates are paid 15% of volume generated on the weaker binary team side.
Once paid out on, volume is matched against the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side carries over.
Check Match Bonus
My Blockchain Life pays a 10% match on residual commissions earned by personally recruited affiliates.
Rank Achievement Bonus
My Blockchain Life rewards affiliates for qualifying at the Prospector and higher ranks as follows:
- qualify at Prospector and receive $250
- qualify at Bronze and receive $500
- qualify at Silver and receive $1000
- qualify at Gold and receive $2500
- qualify at Platinum and receive $10,000
- qualify at Diamond and receive $25,000
- qualify at Vice Chairman and receive $125,000
- qualify at Chairman and receive $250,000
- qualify at Global Chairman and receive $1,000,000
Joining My Blockchain Life
My Blockchain Life affiliate membership is free.
Full participation in the attached income opportunity however requires a $3000 hardware purchase, and then
- $1250 every 500 days; or
- $2000 every 1000 days.
My Blockchain Life pitches itself as
the fastest growing and the worlds first Official Blockchain Network Marketing Company.
We’re not aware of a “blockchain network marketing company” governing body. Who therefore made My Blockchain Life’s claim “official” is a mystery.
In any event, what My Blockchain Life’s MLM opportunity boils down to is handing over $4250 for a 500 day ROI or $6000 for a 1000 day ROI.
After either 500 or 1000 days, another $1250 or $2000 payment respectively is required.
With respect to securities regulation, an investor dumps $4250 or $5000 into My Blockchain Life on the implied expectation of a 500 or 1000 day passive ROI.
You buying mining hardware and setting it up yourself is one thing. Paying a third-party, doing nothing and collecting a return ventures into investment contract territory.
If you’re looking for an example of this in practice, look no further than Swiss Gold Global.
Swiss Gold Global solicited investment on cryptocurrency mining, purportedly done through third-party Genesis Mining.
US authorities moved against both companies with a securities fraud cease and desist in March 2018.
The cease and desist against the third-party merchant, Genesis Mining, was volunatrily dismissed a month later.
The cease and desist against the MLM company, Swiss Gold Global, stuck.
In My Blockchain Life both the MLM company and merchant are one the same, meaning a securities fraud cease and desist will stick as it did for Swiss Gold Global.
Or if the SEC investigate at a federal level, a temporary restraining order followed by a preliminary injunction.
As it stands My Blockchain Life is not registered with the SEC, or securities regulators in Canada.
At the time of publication Alexa cites Australia (89%) as the top source of traffic to My Blockchain Life’s website.
My Blockchain Life hasn’t registered its securities offering with ASIC either.
In addition to committing securities fraud, My Blockchain Life also operates as a pyramid scheme.
There is no retail offering within My Blockchain Life, with all commissions tied to recruitment of new affiliates and their spending of money.
This is 100% internal consumption, which for an MLM company qualifies My Blockchain Life as a pyramid scheme.
Pending regulatory action, My Blockchain Life will stall when affiliate recruitment dies down.
No recruitment kills the MLM side of the business, leaving its passive investment opportunity unlikely to survive.
In this sense My Blockchain Life is more like BitClub Network than BitConnect.
Despite having different business models, both companies committed securities fraud.
For his part I can only assume Glen Williams has some awareness of what he’s doing.
In one marketing video, made available on My Blockchain Life’s Facebook page two months ago, Williams states “the business has been launched for a few months now”.
So what’s the hold up with the company website then? Why isn’t company ownership and the passive investment plans disclosed?