YouXWallet Review: 400% ROI bitcoin investment fraud
YouXWallet provides no information on their website about who owns or runs the business.
YouXWallet’s website domain (“youxwallet.io”) was privately registered on May 10th, 2019.
In their marketing material, YouXWallet represent they are based out of Estonia, with an administrative office in Portugal.
Despite offering a language selector tool on their website, YouXWallet’s website language is currently locked to Portuguese. This is represented by a Brazilian flag.
Additionally, Alexa currently estimates that 88% of traffic to YouXWallet’s website originates out of Brazil.
This strongly suggests that whoever is running YouXWallet is actually based out of Brazil, or at a minimum is from Brazil but living elsewhere.
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.
YouXWallet has no retailable products or services, with affiliates only able to market YouXWallet affiliate membership itself.
YouXWallet affiliate membership provides access to YouXAcademy.
YouXWallet states YouXAcademy contains “very high quality content … for you to raise your standard of knowledge”.
YouXWallet’s Compensation Plan
YouXWallet affiliates invest bitcoin on the promise of a 0.3% daily ROI (Monday-Friday).
YouXWallet offers affiliates eleven investment tiers:
- Xwallet 100 – $100 worth of bitcoin
- Xwallet 300 – $300 worth of bitcoin
- Xwallet 500 – $500 worth of bitcoin
- Xwallet 1000 – $1000 worth of bitcoin
- Xwallet 3000 – $3000 worth of bitcoin
- Xwallet 5000 – $5000 worth of bitcoin
- Xwallet 10,000 – $10,000 worth of bitcoin
- Xwallet 20,000 – $20,000 worth of bitcoin
- Xwallet 30,000 – $30,000 worth of bitcoin
- Xwallet 40,000 – $40,000 worth of bitcoin
- Xwallet 50,000 – $50,000 worth of bitcoin
Returns are paid out until 400%, after which new investment must be made.
YouXWallet affiliates are able to process one withdrawal a week, on which they are charged a 5% fee.
YouXWallet’s Affiliate Ranks
There are eleven affiliate ranks within YouXWallet’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up and invest
- YouX 1 – generate an accumulated $1000 in weaker binary team side volume
- YouX 2 – generate an accumulated $4000 in weaker binary team side volume
- YouX 3 – generate an accumulated $20,000 in weaker binary team side volume
- YouX 4 – generate an accumulated $50,000 in weaker binary team side volume
- YouX 5 – generate an accumulated $200,000 in weaker binary team side volume
- YouX 6 – generate an accumulated $500,000 in weaker binary team side volume
- YouX 7 – generate an accumulated $1,500,000 in weaker binary team side volume
- YouX 8 – generate an accumulated $3,000,000 in weaker binary team side volume
- YouX 9 – generate an accumulated $5,000,000 in weaker binary team side volume
- YouX 10 – generate an accumulated $10,000,000 in weaker binary team side volume
Note that ofthe raw investment volume amounts required above, no more than 20% can come from any one unilevel team leg.
YouXWallet affiliates are paid 10% of funds invested by personally recruited affiliates.
Residual Commissions (binary)
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 each day YouXWallet tallies up new investment volume on both sides of the binary team.
Affiliates are paid 10% of funds invested on their weaker binary team side, capped based on the highest tier they’ve invested at.
E.g. Xwallet 20,000 tier affiliates can earn up to $20,000 a day in residual binary commissions.
Residual Commissions (unilevel)
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.
Commissions are paid as a percentage of funds held in the backoffice of unilevel team affiliates, capped down ten levels.
The residual unilevel commission rate appears to be 2.5% of 0.1% of the backoffice amounts, calculated and paid daily.
Rank Achievement Bonus
YouXWallet rewards affiliates for qualifying at YouX3 and higher ranks.
- qualify at YouX 3 and receive an iPhone
- qualify at YouX 4 and receive a four day cruise plus $500
- qualify at YouX 5 and receive a 6 nights trip to the Caribbean plus $3000
- qualify at YouX 6 and receive a seven nights trip to the US plus $6000
- qualify at YouX 7 and receive an eight nights trip to Europe plus $30,000
- qualify at YouX 8 and receive a ten nights trip to Dubai plus $50,000
- qualify at YouX 9 and receive a twelve nights trip to Tahiti plus $60,000
- qualify at YouX 10 and receive a “house of dreams” plus $250,000
YouXWallet affiliate membership is $10. It is unclear whether this is a once-off or monthly fee.
Note that all payments within YouXWallet (both paid and received) are made in bitcoin.
YouXWallet represent they generate external revenue through cryptocurrency and forex exchange, as well as “smart ideas (startup) market”.
The company however provides no evidence of external revenue being generated via these activities.
This leaves new investment as the sole verifiable source of revenue entering YouXWallet, the use of which to pay 400% returns makes it a Ponzi scheme.
YouXWallet also engages in pyramid fraud, by way of rewarding affiliate investors who recruit new affiliate investors.
Even if you buy into YouXWallet’s unverified claims about external revenue generation, at a minimum the company is still committing securities fraud.
In their marketing material YouXWallet provide a “registry code” for Estonia’s e-business register.
This corresponds with an incorporation in Estonia for YouXWallet, however this is not the same as registering with a financial regulator.
Passive MLM investment schemes like YouXWallet are classified as securities. In order to operate legally YouXWallet has to register its securities offering with financial regulators.
Securities offerings in Estonia are regulated by the Estonian Financial Supervision and Resolution Authority.
Basic incorporation, as YouXWallet has done, does not authorize them to offer securities in Estonia.
That’s of course a moot point, because YouXWallet in Estonia is a shell company. Investment is primary solicited in Brazil, which is regulated by the Brazilian SEC.
YouXWallet provides no evidence they have registered with the Brazilian SEC, or indeed financial regulators in any other jurisdiction.
As with all Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve YouXWallet of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.