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My dad forced me to pay him K 100K for a ‘profitable’ cryptocurrency pyramid scheme. How do I get my money back?


My dad recently joined a cryptocurrency MLM (Multi-Level Marketing) and hired me in this profitable scheme, where I finally invested $ 100,000. How it works is that the person who hires you earns 20% of your earnings, then 15%, 10%, 5% and so on.

We are three children and our mother. The problem is that he structured the rewards of the account in such a way that he, my mother and my two siblings cut 20%, 15%, 10%, 5% and much more – yet I financed everything. I think the way he set it up is unfair, and my kids would love to be downstream to my account so they can get those benefits. To give you an estimate, a 20% account earns 100 per day for almost two years.

I must admit that I did not understand how MLM works, or that I was even joining an MLM. That’s how he didn’t make this word when he forcibly encouraged me to keep this amount. I only trusted my father to work in my best interests. She chose to keep several aspects of this investment opportunity secret because she knew I would put my husband and kids first.

The hardest part is that out of all my siblings, I have helped my parents in many ways. I was generous with my time and money, yet this is how I am being repaid. I told them to return that “reward” and now no one is talking to me or my family, and they are apologizing for being greedy for that money.

“I should be grateful that he signed me up for this program,” he said. A few favorite words have been exchanged, and now there are feelings of hurt all around. Was I small enough to get angry at it? Please help us find peace and laughter in our home.

Annoyed daughter

You can email The Monist with any financial and ethical questions about coronavirus at qfottrell@marketwatch.com and follow Quentin Futrell Twitter.

Dear bored,

One man’s investment club is another’s ponzi scheme.

Your family members have gone cryptocurrency-gambling crazy, and they have done it with other people’s money. Your money, to be precise. Never transfer money to a friend or family member without a transaction and leave the agency on your own money, especially for such risky offers.

This $ 100,000 may or may not disappear. But when you get into the chain and the multi-level marketing scheme becomes more opaque, the chances of that happening increase. However, it is a pyramid scheme that relies on other people joining, each person moving away from the profits of the people below them.

Your father disappointed you by using his leverage in the family, but you voluntarily handed it over. This is a difficult lesson. Ask him out well if he is no longer absorbed in the connection. What if he refuses? It was not a gift or a loan. You gave him to invest on your behalf – in a saturated market where there are wild fluctuations.

Multi-level marketing schemes are risky when you are selling a product, but it is a highly volatile asset. According to the Federal Trade Commission, “If the MLM is not a pyramid scheme, it will pay you based on your sales to retail customers without hiring new vendors.” Alas, that No. The case is here.

Now, a warning: “Most people who join a legitimate MLM make little or no money,” the FTC added. “Some of them lose money. In some cases, people believe they have joined a legitimate MLM, but this has turned into an illegal pyramid scheme that steals everything they invest and throws them deep into the .n.

While some multi-level marketing schemes are completely legitimate, Brian Hutchstein, an assistant professor of marketing at the University of Alabama’s Culverhouse College of Business, says that in most cases the pyramid schemes’ depend on the desire to get rich quick. ” Get into a good deal, ” make it. ”

In the seven months from October 2020 to May 2021, U.S. consumers reported a loss of more than ০ 1 million in cryptocurrency investment scandals, ten times more than in the same period a year earlier. It involved 7,000 customers, and the average amount lost was $ 1,900.

In a crypto pyramid scheme you are not the only one to transfer thousands, and you will not be the last. “If it sounds too good to be true, it usually is, so it’s a good deal and look for any opportunity to make sure you can honestly describe the value and good value to a family member or friend,” Hochstein added.

Your father didn’t do it, and you didn’t do your own thing. The question for you is why. The expectation of “simple” money can be exciting and exciting, but you both bear the brunt of this Wild West investment, especially when it’s based on encouraging other decent and vulnerable people to do the same.


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See Moneyist Personal Facebook Group, where we are looking for answers to the most difficult money problems in life. Readers write to me with all kinds of hesitations. Post your questions, tell me what you want to know more about, or consider the latest semantic columns.

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More from Quentin Fottrell:

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We are getting married and have a baby on the way. My wife offered to pay me $ 10,000 student debt and $ 7,500 car
I have three children. I claimed my house to my most responsible son. Now he has blocked my call
My cousin died, Mess left home. Her landlord wants me to repaint and replace the carpet. What should we do?





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