There’s just one reason an MLM Ponzi scam stops paying out, as has been painfully clear in recent weeks.
Withdrawal delays can be the initial symptom, however, this isn’t usually the case.
Crowd1 is an MLM Ponzi that experienced withdrawal difficulties for the first time in 2020.
The matter has grown so terrible that Crowd1 chief Kenny Nordlund has responded.
Rather than simply confess that new funding has dried up, Nordlund accuses the company of fraud.
Kenny Nordlund was named President of Crowd1 in the second half of 2020. (I might be slightly off).
For years, Nordlund has been defrauding people through MLM Ponzi scams.
In the MLM sector, he is most known for being a top earner in the infamous OneCoin Ponzi scam.
Following the failure of OneCoin, Nordlund joined Udo Deppisch in Anthony Norman’s Wantage One Ponzi scheme.
Nordlund moved to Crowd1 in early 2020 when that fell through. Later in the year, he became a member of the executive team.
Nordlund says Crowd1 “has some and has had some payment delays” in an undated “AGL meeting” audiotape published to YouTube on May 24th.
We’re online, and in this market, there are a lot of scams and efforts.
People will find a new door if we close one. They open a new door for us, and we’re always working on it. And it’s something that, regrettably (laughs), impacts a lot of their folks.
And what I mean is that there are a lot of scams going on. Something that is being twisted in many ways in our compensation plan – which is not acceptable.
That has happened to us. We’ve gone through it several times over the years.
Crowd1’s remedy is said to be a “new IT system” that will go live… at some time.
In the IT department, we’ll be implementing a new system.
And that’s when, and we’ll have it, and of course (laughs), we won’t tell you everything because people will attempt to open new doors.
I’m not saying you’ll do it, but some folks are continually attempting to defraud the system.
Nordlund goes on to say that employment with Crowd1, which is accused of fraud, would “fall under the compliance department.”
During the investigation, the positions will be frozen for rewards.
In other words, Crowd1’s “new IT system” is a pretext to freeze investor accounts that it believes are withdrawing too much money, or are attempting to take too much money.
It’s a workaround for dealing with delayed withdrawals, but it’s still a band-aid approach.
Even if you believe Nordlund’s drivel, a new overnight account cannot withdraw enough money from Crowd1 to cause cash flow problems.
It’s a long-term investment, and that’s what Crowd1 is aiming for.
Let’s imagine someone is attempting to swindle the system.
Let’s assume it impacts two hundred persons out of a total of a thousand.
So, around two hundred people will be compensated. You have two hundred individuals who have done something, and you have eight hundred people who have been impacted by the scam but have done nothing.
Of course, this causes delays. It annoys, and people believe things like, “Oh, they’re not paying because of this, they’re not paying because of that,” and so on.
Everyone who has visited Dubai has seen that we are growing. There’s no way we’re leaving.
With this capability, the payment procedure should be significantly accelerated. And I believe you will see, within days, how… any payment delays are reduced.
Nordlund cautions that if the “fraud” continues, Crowd1 as a company would be jeopardized. It’s a stretch, given that Crowd1 is, by definition, a sham company.
One thing I’m not sure about is how the recent withdrawal delays appear to be influencing recruitment commissions.
This would be a new event, as the 2020 withdrawal delays only applied to ROI payments. Commissions paid in bitcoin worked perfectly and, as far as I know, haven’t caused any problems.
Crowd1 hasn’t addressed ROI payment concerns since 2020, according to comments placed on the YouTube video.
This would imply that they’ve been luring investors in with recruiting fees.
If those are suddenly having troubles as well, to the point where Crowd1 needs to impose dubious limits, I’m sure you can figure out what’s going on.