Today on April 10th, 2024, BehindMLM turns fourteen.

This is a look back on the past twelve months, published as our annual “State of the Scam” report.

MLM crypto scams

I won’t waste your time trying to analyze the perpetually manipulated state the crypto market is in (lol tether), but I started to notice a decline in MLM crypto schemes around Q4 last year.

It was gradual at first. New launches weren’t sticking and the average lifespan of an MLM crypto scam dropped to one to two months.

There was also a distinct lack of “mega Ponzis”, something we’d seen consistently over years past. OmegaPro was probably the last mega-Ponzi I tracked and that collapsed towards the end of 2022.

Just so there’s no ambiguity, when I say “mega Ponzi” I’m referring to a scheme that tops monthly website visits of a few million (this is typically the peak of a mega Ponzi).

In fact for most of 2023 to date, there hasn’t been a prominent mega Ponzi to report on.

Outside of some diehard Russians still launching the odd Boris CEO, and what’s left of the scammers who thought AI was going to be the next big grift, MLM crypto scamming, at least for now, is pretty much dead.

This is a bit of a surprise with the current pump manipulation of the wider crypto market but I guess not totally unexpected. Outside of dwindling echo chambers there’s little to no new interest in crypto in general.

Will it stick throughout 2024? That I’m uncertain of. We’re coming up on or around six months now and it’s pretty quiet. Without knowing the specific contributors forecasting the rest of the year is difficult.

Broadly speaking I think one of the primary contributors to MLM crypto schemes imploding is people just don’t have money to lose. Secondary to that could be the ongoing various high-profile crypto busts out of the US.

Anyway BehindMLM will of course keep reviewing the MLM crypto schemes that pop up, but it’s also refreshing to have more time for the rest of the MLM industry as well.

Pending an uptick in MLM crypto fraud, by about mid year the balance should be at around 50% between MLM crypto and non-crypto coverage.

The MLM industry in general

In line with the decline in MLM crypto schemes, there’s also an overall contraction of the MLM industry.

Non-crypto MLM launches have never been prolific but we’re seeing mergers and acquisitions take place.

I don’t typically focus on how MLM companies are doing but I do recall the odd time I’ve pulled up website statistics as part of general research there’s an overall trend towards decline.

Launches are smaller and initial hype fizzles out quicker. Top distributors are getting restless and switching companies to try and reestablish lost earnings.

There’s been two or three instances over the past year where dwindling earnings have been cited as a defense for alleged cross-recruitment. Pruvit’s failure to pay executives is another example that comes to mind.

Long term the MLM industry might bounce back but over the next year I anticipate we’ll see more bankruptcies and top distributor earnings squabbling.

BehindMLM housekeeping

Being a publication that researches and reports on the MLM, we’re not immune to the industry downturn.

Online publishing in general across the internet is in a bad spot and we’re grouped in with that as well.

We’re OK for now but at some point I might need to pivot. I’m trying not to plan too far ahead and for the most part will just play it by ear.

I’ve always maintained I’ll continue to publish on BehindMLM as long as there’s reader demand. That hasn’t changed.

Outside of MLM and online publishing being in a slump the other concern is still frivolous legal proceedings initiated by GSPartners and Josip Heit.

I covered this in depth last year but, long story short, proceedings are still playing in the background.

As silly as it might seem for GSPartners and Heit to maintain intention to sue for defamation when they hold the record for regulatory fraud warnings (thirteen US states, six Canadian provinces and four other countries), that’s the ruse they’re sticking to.

Looking forward, there’s a hearing on our filed appeal on May 8th with oral arguments.

The outcome of that hearing will see one of two scenarios play out;

If the appeal is upheld, proceedings will be punted back to the New York Supreme Court. Our legal counsel has informed the Appeal Court if that happens we intend to initiate anti-SLAPP proceedings.

Regulatory fraud warnings render any claims of defamation from Heit and GSB Gold Standard Corporation DOA. This has never been anything more than a fishing expedition.

Alternatively our appeal isn’t successful, in which case the only immediate change will be security on my end. Given Heit’s proximity to organized crime interests in Europe, extrajudicial retaliation remains a primary concern.

Law enforcement and regulators are briefed and observing. And it’s expected federal civil and criminal charges in the US will drop at some point.

The way I see it, at some point you have to acknowledge you’ve done everything you can and just get on with it. I’m not the first journalist to be targeted and I won’t be the last.

Thanks for reading for another year. Next year BehindMLM turns fifteen!