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Multi-Level Marketing (MLM), Network Marketing, Pyramid and Ponzi schemes
Multi-Level Marketing (MLM), Network Marketing, Pyramid and Ponzi schemes
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Written by Safello
Updated over a week ago

First reported: 2020-11-20

Crypto MLM schemes and crypto network marketing affiliate programs are hard to identify because they often appear to be legitimate for a period of time before they stop paying out funds or disappear entirely. They tend to benefit the first few people who join them, who then invite their friends, and so on.

MLM scammers typically personally contact potential victims via phone, email, or social media. Ponzi schemes are scams and are fraudulent systems that require you to invest in them with a promise to make significant profits in return. They often require you to advertise their systems as a way of making more money, through affiliate programs, to convince more people to join.


These programs, when applied to the cryptocurrency industry can, for example, be centered around;

- lending or staking,

- personal development, life coaching educational sessions, and investment courses,

- property development projects abroad.

How to prevent this type of fraud from happening:

In order to protect yourself, you need to understand how transactions take place and how they are formed. It is important that you learn how cryptocurrency works to ensure that you do not get involved in transactions that you do not fully understand.

Remember that blockchain transactions, once completed, cannot be reversed or altered in any way.

Scammers operate in many ways, but the primary and most common path is to take advantage of a victim’s lack of understanding. Please read more about investment fraud tactics here: 1. You are being offered support in trading, recovering money, or investment support by a third-party company or an individual and 2. You are contacted by a person who claims to work for or with Safello, who offers you help with recovering lost funds.

Safello is not a payment service provider and you should only send funds to your own wallet that you have full control of. If you send funds to any cryptocurrency wallet that is not your own and you are not sure that you are the only person who controls it, you put yourself at risk.

Have you been contacted regarding a crypto MLM scheme?

Please contact us at

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