Topic: Can I SUE A Crypto Ponzi PROMOTER? (Read 410 times)

Surely we can sue any scammer and Ponzi promoters as long as Bitcoin is declared legal in our country. If Bitcoin is legal then the government is oblige to depend the people of their rights to be protected from this scammers specially if we are paying Bitcoin tax for the government. Just make sure that these people can be easily to be found so that they could be easily to be caught and jailed too.

You can sue him for misleading you into a ponzi scheme and end up in a loss and i am not sure what proof you have to convince that they influenced you into something fraudulent for his benefit and if you can prove that you have a solid case in hand against him but you can very well sue owners of the said service for misleading you.

I think the case of winning or not winning here will be based on evidences. Thus, the question of knowledge will come in. Knowledge about whether the suppose accused which would be the referral agent was aware of the ponzi and deceived you into believing and thereby getting you to investing and therefore losing out because of the selfish aim to get 5% in referral.

Another circumstantial evidence that will be adduced to the matter is at what time did the referral agent got to know about the ponzi.

Consequently, you can succeed if knowledge is proven, it will be referred therefore as a case of obtaining by false pretence or trick.

I am not a lawyer nor an expert in the law. Now, based on what I know, people who are promoting a program that eventually became scams especially if they really gained significant money out of it can be sued together with the people behind the program. However, rather than waste your time with the referrers why not instead sue the people who started the program? In my country, scammers can easily get away though there are some exceptional cases of popular scammers that eventually went to jail. Scammers are the people who are tainting the cryptocurrency industry as many people think that just because a program is utilizing Bitcoin it already means that Bitcoin is also a scam.

I think that you can sue the person tha convinced you using his link and he got you involved in this ponzi scheme. If you have proof that this guy offered you financial advice without having any right to do so, they I think it is possible.

Can you let us know which is the platform that is a ponzi scam? It will be good to raise awareness.
And next time don't get overwhelmed by a guy who promises easy money. Most of the cases end up in a scam.

The best you can do is win a civil case and enact claw back laws to take back any money they earned from you in the form of commission.  The lawyer fees alone would likely exceed what you could clawback from them, even if you do win.  So then the only reasonable action you can do is arrange a large class action if this was a big promoter so that you could get a lawyer to sign on and they take a cut for fees if they win.

There this guy online who has made millions promoting mlm's and he has claimed to been sued many times, but says he has won most if not all the cases against him.  So I would say being successful will be very difficult, time consuming and expensive.  In the end its a money and experience type of thing, they got the money and you get the experience.  Don't feel too bad as you could have lost that money gambling, buying alt coins, or in the stock market.

thats life, be safe and buy BTC

It is irrelevant what they think.
If someone steals your car which is is not consider a financial product, can you sue them?
I am pretty sure person who lured someone to invest in fraud will be seen as an accomplice (laws for that actually exist), you can sue them and they will get some penalty. But what you are looking for here is operator behind ponzi scheme - you need to sue them to get your money back. That is tricky part - they usually can't be found. Contact lawyer and see what are your options.

Depending on the case because there are affiliates which are also part of the team itself but proving it out wont really be that easy unless if there are some internal investigation which means you would still need
to have some legal actions towards them if you do really pushes it but i see no point on suing on this case because it would really be a long process knowing that any crypto investment that do involves scam or ran away of
money wont easily be tracked up and also most of the time affiliates are also blind on the legitimacy of the said company they do only care about the commission and most of the time they are also a victim like op.

I think your problem will be given much attention if you will consult a professional.

That percentage looks ponzi to me, that means you are making daily profit by just investing, I think we should be careful all the time
and has to understand the risk we are taking, anything that looks too good to be true is already suspicious, if I'm in your shoes, I would not invest in that kind.

The promote is not licensed but you trust them, that's one of your mistakes.

Correct and promoters are also just looking for money and they are only working for that product if they referred you to invest in it. It's better to chase the man or group behind this ponzi scheme because the money you invested is on their pockets and your friend does not have it. But if the case is he is officially connected or one of the members of the scam then you should sue him too.

No, I don't think so, the affiliate has no control on all the actions of the program, he too was made to believe that he is promoting something profitable for him and his referrals, affiliates are outside of the program's governing rules, they can even change how many affiliate will get or even scam affiliates.

there are some case that a promoter is also related to the company that he promotes   .  i knew some alot of them , they are dominating on social media sites where promoters create a dummy account to invite other people to join thier company . the bad thing is that there are still people who got tricked because the promoter is too good to be true  .  btw , you can sue them @op but its not easy to caught them because they maybe using fake profile and fake infos  .

You can sue him, but it's not going to worth it because who knows he is just a hapless victim also and a minimum wager only, so better go for the big fish, they are the one who made a huge profit, your referrer does not even have an attorney to defend himself, you might be barking at the wrong tree if you push it.

You can probably initiate some sort of civil action, but again, I highly doubt that you'll be able to do anything about it.

If the guy isn't even Australian and he's moved back to his home country, it'll be a difficult task to even get him to court let alone try to find compensation for your current situation. Furthermore, you'll probably have to consult a solicitor which will set you back probably a lot in legal fees, and effort in general, as I've mentioned.

Even then, you've got to prove that the guy knew the whole thing was a scam as he promoted to you. It'll be difficult since he's only a referral promoter himself, and not actually involved in the runnings of the scheme. The best thing to do right now is to probably move on and learn a lesson, though you could pursue the legal path if you really wanted to.

$40,000 is such a huge amount you should post the name of that Ponzi company, but why not target the real owners of that company, for all you know, he too is an investor of that company, they are just promoter, they do not control the fate of the company, go for the real owner they are the one who made huge and not who refer you.

I have a strong feeling that the one who recruited you is a "investor" on the ponzi itself and he is not directly associated with the ponzi scheme itself. He is only after the referral commission he will get from you, just like any other users who wants to maximize their income without putting up additional money from any pyramid/mlm scams. At a point in time these users I am referring too are enticed by the referral commission and when it has reached to a point that the pyramid will be having a exit strategy without any trace the people only left are the ones who have recruited you. Now for chasing recruiters if it has proven that they themselves are users of the scam and has been victimized by it I think they won't be severally liable as they aren't really affiliated to the scam company.

no , its a very common practice
MLM marketing is built on affiliate commission , otherwise there is no point in promoting things
in fact , he would rather you keep earning than the project turn scam and he lost his income , also I believe you were not his only affiliate
so unless he has been working together with the owners to knowingly scam people luring them to a project that he knew would not pay
he had no intention to defraud you , in any case it would be very hard for you to prove anything in court

But he still solicited me into the investment in which he got a % of my profits that the bot generated me!

Isn't that counting for something!?

if you sued all of the affiliate promoters promoting shady services , half of the affiliate marketers would be serving a jail term
the only case if you can provide evidence that this person knowingly helped to defraud you out of your money
won't be easy and will depend on the lawyers and your countrie's legislation
a quick question - have you withdrawn any money at all from that ponzi at all
and why on earth did you invest into anything that offers 10% monthly ROI , as if it wasn't clear from the get go how would it end?

Just only putting up on ones mind that everything sounds too good to be true here on online world are really scams.No sustaining company would offer high returns on a short duration and thinking up this thing mainly would already be enough for you to be convinced on not putting any investment with it.

On the situation where you can actually sue someone but you would really have the problem to fight yet its not citizen on such country where you are just wasting up your time and money.

The answer depends largely on how the domestic legislation of your country of residence governs this situation. However, as a general rule, it is possible to hold a person accountable for fraud in order to obtain other people's property, that is, for committing fraud. In many countries, responsibility for fraud comes criminal, in which case it is necessary to go to the police, and not to the court. In some states, you can apply in court, but in this case you need to look for yourself and present in court evidence of your innocence.

If you can convince the court of law that the person advised you about the ponzi scheme is a scammer, then anything can happen. However, since the person is not an Australian citizen, the court has limited power to control the situation.

If I was standing at your situation, I would first try to negotiate with the ponzi company to get the principal amount back without any interest or at least the major percentage of the principal amount.

It all points out on whether you got scammed or not and looking at your OP I can tell that you have "invested" in their ponzi scheme, so if you have lose the money then you have valid points on suing someone. The tricky part here is if the one who referred you to the ponzi isn't really at all connected to the scam, he might just be an accessory or worst a victim like you just like how other ponzi schemes are. Most people getting caught from failed scams are also victims of the scam and not the real culprits of it.

Note that I'm not a professional lawyer, but even if you had all his personal details it would be really difficult to persuade the prosecutor to press charges. Why? Because you admit that he didn't know of it being a scam, so his intentions were good, and there's a chance he also got scammed, so he's a victim, like you. His only fault was spreading the word, but this is natural for someone excited and full of confidence in the scheme. Technically, I'm spreading the word about yolodice in my every post, but am I responsible for their every move? No. I could tell you now to go play there, because I personally find the site to be fair and legit, but the code can theoretically be modified, or they can at some point in the future decide to run with the money. Should I be held responsible and sued?

Imagine that you invest in something and tell everyone you know about it, just like I'm telling people around me about bitcoin, and this investment happens to be a big scam. Should the court find you responsible for other people's losses? In such case it would be possible to sue TV stations, newspapers, advertising agencies, graphic artists, even actors who play in ads.

The justice system is unpredictable at times, but there are cases we can use as examples. One of such is the one of Bernie Madoff. He had a special room where the scheme was being run from, and people inside knew the details. He also had a company in which he employed people who had no idea they're participating in a massive fraud. The employees of the company were never charged, even though they took part in finding clients and promoting the company. They were being fed information by Madoff and acted on his behalf. They also did not profit from the scam.

There might be a connection with him and those site owner so you can try a legal way to address this problem, you can ask your legal team for this.
But if there is no connection, then you cannot sue him because he doesn't control the site and its your fault to invest without your proper education, don't just trust anyone especially when it comes to money.

Move on now, you can earn more if you learn from this mistakes and start to invest on a real project, go for bitcoin and top altcoins.

Thanks, do you think I have to convince a court to hold him if he comes back to Australia? As in spend money on a lawyer and go to court to convince them? Would it be guaranteed that they would hold him if he comes back?

As in - If I "sue" someone, are they put on a travel ban to make sure they can't leave the country?  Im guessing I have to convince authorities to put a travel ban on him if he comes back even though he's not a citizen, just an American.


It was definitely #1. The promoter invested and referred to me (we both thought it wasn't a scam)

Do you think the Promoter would get at the very least charged by the gov for promoting a scam?

You can sue anyone for any reason! Take it as a thumb rule but it doesn't ensure that you will win the case. Since the company is not a registered player in the financial market and also the affiliate marketer is an American, Australian court can't held him for any reason unless and until that person decides to come back to your country! I would rather suggest not to go ahead as sue this person because you will end up only spending money behind a lawyer. Instead try to negotiate with the ponzi company if they can refund the money to you without any interest.

I believe you have learned the lesson in hard way! There are no such real world businesses which can generate as much as 10% monthly income. Ponzi is basically a money rolling business and 99.99% of ponzis are scam! Please don't invest even a nickel in ponzis no matter how good they sound!

You cant yet theres no one who force you to join up that program even he do explains or do invite you out, you still have the final verdict or decision either
you would agree or just simply ignore him.Your funds,your decisions then theres no one you can sue out and getting these things to legal aspects.


Better directly seek out that investment company but I doubt this wont really be an easy task and would cost out money if you do tend to fight on legal or even
just searching them up will surely cost you.

It is, but you have to prove that the promoter knew what he was promoting (intent). One case can be totally different from another. To visualize this I'll give you some examples.

1. The promoter took a referral link from a site that he was investing in and believed to be real, not a scam. You clicked in the link, registered into the program and lost.
2. The promoter thought it to be legit and told you about it, invited you in. You know the rest.
3. The promoter knew it to be a ponzi scheme and invited you in, but he was honest and told you what it was and that you're risking everything.
4. The promoter knew what it was but joined the referral program to lure others in. He did not invest himself, only took profits from the referral program.
5. The promoter was paid to lie about the program and invite people in. He knew what it was, did not invest himself, was being paid a wage.
6. The promoter was an employee of a company that he believed to be legit and paid a wage. He was hired to advertise them and was never told that it's a scam.

If he was a contract worker on a wage you'll be wasting time. In all cases you'll have to prove that he knew what he was promoting, and it would be best if he had a stake in the scheme and pulled out before the collapse. If he also lost money (was scammed), it will make the case much harder if not impossible to win.

Thanks everyone, the country I'm from is Australia. The person who promoted it to me is American and he just moved back there.

I guess I can sue him, but I doubt I'd get anything out of it based on all the time and energy I pour into it.

Anyways, based on Australia what do you guys think? I could sue the promoter for $ or they'd just get issued some fine?

You know what? Don't get offended but your arguments against them are nonsense. You have stated that you were convinced by them. The question is why?

Let's look at their argument first.

You knew about the Crypto Ponzi Scheme Platform but you were convinced? You knew that everything doesn't grow over time but you were catched with the trap of 10%+ a month in ROI?
You knew that they don't own the platform yet you are using them because of convincing you?

Let's move to your Argument.

You knew that they didn't have a financial service license, but you were convinced. Why?
You know that they didn't have a registered company yet you were convinced. Why?

Answer these questions and get a lawyer.

You could argue that he's acting maliciously to mislead you into investing into a ponzi scheme. And since he's receiving a portion of what you invest, and he admits to being an affiliate, you could possibly be able to use that argument to your advantage to establish the concrete link between him and the ponzi in question.

Although, we have no idea what jurisdiction you are in, or what the legal system is like within that jurisdiction. So whether this is actually an offense or not is unknown.

I've heard of in the US lawsuits following the exit scam of Bitconnect, when a bunch of youtubers that were promoting the scheme apparently got sued (Trevon James, for example). I haven't heard much about the proceedings apart from the fact that a lawsuit was pending, though.

I personally would say that your chances of success is slim, and you'll need to invest high amounts of energy and funds into this (again, concrete numbers are unknown since we don't know what country you are in). So unless it's a big amount involved, I wouldn't bother, but rather try settle this privately.

I just remember a quote from one of my business class teachers in college who was a lawyer.

"You can sue anyone for any reason, the real question is will you win".

Contact a lawyer in your country and ask them, if they don't want to take the case, you have your answer. Most law firms will take a case if they feel they can make money doing so.

If you were from The US or Canada, absolutely. One example is the story of 12DailyPro, it was a paid autosurf running more or less on the HYIPs model. until the SEC starts investigating this Ponzi. Another one is Bitconnect. Promoting a scam is an act punishable by a justice sanction. Usually a fine equivalent to the amount you won, so you have to pay back to the courts your winnings you generated with the scam.
As other users above said it depends on the laws in your country, that's what really matter.

You didn't tell us which those countries are. That's very important as legislation and legal process varies between countries.

Does your country have some kind of consumer or finance complaints board where you could file a case without having to incur the overhead of full-blown civil proceedings?

I've never heard of a case in my country where promoters and referrals were sued. I have read of the government issuing them fines but it's typically related to false promotions or misleading advertisements (like on billboards).

Your best bet for success is to look for others like yourself, who lost money, and to find representation willing to go for class action. Then you pursue the business who accepted your funds. See, even if you bring your friend to court and win, your money's with the company and not your friend. Most court could ask is to ask him to return you his referral commission. That's my non-legal expert opinion.

You do have yourself to blame, after all. Hopefully you learnt something from this.

Hi, I got convinced by someone to invest in what I now think is a Crypto Ponzi Scheme Platform that said it could earn 10%+ a month in ROI. The person who convinced me didn't own the platform/company, they were simply a "Referral Marketer" that used that platform's "Referral Link" as apart of their Referral Program. The person would gain 5% of my daily profits from the Platform for referring me. 

The platform has locked my money in there (which is allowed according to their T&C) + my profits have dwindled to 1% a month.

---
I want to sue the person who referred me to this platform, but they think otherwise:

Their Argument

- They don't own the platform and are simply "affiliate marketers" for it by using the referral link

- They left the country and live elsewhere (but promoted this platform to me in my country)

My Argument

- They didn't have a financial services license (but Bitcoin in my country is not considered a financial product)

- They didn't have a registered company

Does this mean I could sue the person who referred me too? Or Could I only sue the company behind the actual ponzi platform?

Please let me know if I can sue this person + the costs, process, etc. And if it's worth it at all. I've invested $40,000 and my money is stuck on this platform.