Richard D. Raymond, a practicing attorney in Texas, appears to operate a Bitcoin scheme called 20K BTC, which charges members $299 annually. The company's website, 20kbtc.com, registered privately on November 4, 2017, provides no ownership information. However, promotional materials identify Raymond as the principal behind the operation.
Raymond's professional background is confirmed by the State Bar of Texas. He runs a solo practice specializing in business law, consumer issues, personal injury litigation, real estate, taxation, and estate planning. In 2009, he sought election as the Fort County District Attorney. A licensed lawyer's involvement in a scheme exhibiting characteristics of a pyramid model raises significant legal and ethical questions.
20K BTC sells no tangible retail products or services. Affiliates generate income solely by marketing 20K BTC memberships. Participants pay an annual fee of $299, remitted in Bitcoin. Commissions are earned exclusively through the recruitment of new members who also pay this fee.
The compensation structure uses a binary model. Each affiliate sits at the top of two teams, designated as left and right. The first level under an affiliate contains two positions. The second level expands to four positions, with each subsequent level doubling the number of available slots. There is no stated depth limit to this structure. Affiliates fill these positions through direct or indirect recruitment. When one recruit is matched on the left team with another on the right team, the affiliate reportedly earns approximately $100 in Bitcoin. A daily cap limits earnings to thirty matched pairs.
20K BTC's compensation plan includes a disclaimer asserting the company "does not sell any investment, security, franchise, distributorship or business opportunity." It also states that it offers no investment, tax, or legal advice. Despite these disclaimers, the plan immediately contradicts itself by stating, "No compensation is paid for enrolling new Affiliates. THERE IS NO GUARANTEE OF INCOME WHATSOEVER! An Affiliate's income is derived from personal membership sales and from the membership sales made by their left and right teams of Affiliates."
The term "membership sales" directly refers to recruitment. Affiliates only get paid when new individuals join the scheme under their downline. This structure, where income depends on fees from new recruits rather than sales of legitimate goods or services to outside customers, aligns with the definition of an illegal pyramid scheme. There are no retail customers who purchase a product for its inherent value. The entire financial model rests on participants paying $299 and then recruiting others to do the same.
Pyramid schemes are inherently unsustainable. Their collapse is inevitable once recruitment slows, causing the binary team structure to stall company-wide. When new participants cease joining, commission payments dry up, leading to the scheme's eventual halt. Mathematical models of such schemes demonstrate that the vast majority of participants will lose their initial $299 investment. Those at the top, including individuals like Richard Raymond, typically secure a substantial portion of the funds through administrative positions or early entry.
Federal law, primarily enforced by the Federal Trade Commission (FTC), prohibits pyramid schemes under the FTC Act, which outlaws unfair and deceptive trade practices. The use of Bitcoin in these schemes adds a layer of complexity for victims, as cryptocurrency transactions are generally irreversible and challenging to trace compared to traditional banking methods. This makes fund recovery particularly difficult for those who lose money.
For a licensed attorney, involvement in an illegal pyramid scheme carries severe professional consequences. The State Bar of Texas could initiate disciplinary proceedings, potentially leading to suspension or disbarment. Such an individual could also face criminal charges for fraud or operating an illegal scheme, carrying penalties that include fines and imprisonment. Victims of alleged pyramid schemes can file complaints with the FTC at FTC.gov/complaint.