The 22USD Club, whose website offers no details about its operators, launched in May 2018 as a membership-based scheme with a $22 entry fee. The domain registration remains private, obscuring the identities of those behind the operation. This lack of transparency is a common warning sign for consumers considering participation in online ventures.
No products or services are offered for sale to genuine retail customers. The entire business model revolves around the recruitment of new members. Affiliates earn money solely by bringing others into the scheme.
Participants pay $22 to join the 22USD Club. For each person an affiliate personally recruits, they receive a $5 commission. An additional $1 commission is paid for every new affiliate recruited into their downline, regardless of whether the recruitment was direct or indirect. This compensation structure operates within a unilevel system, where a participant sits at the top, their direct recruits form level 1, their recruits' recruits form level 2, and so on, theoretically extending to infinite levels. Every new member joining this structure triggers a $1 payment to the upline.
This model constitutes a pyramid scheme. Payments flow from new recruits up to those already in the system, rather than from the sale of any valuable goods or services. The scheme depends entirely on a continuous influx of new participants' money.
Such schemes are inherently unsustainable. When recruitment inevitably slows, the flow of new funds ceases, leading to a collapse. At that point, the vast majority of participants, especially those at the lower levels of the recruiting hierarchy, lose their initial $22 investment and any further funds they may have spent trying to recruit others. The structure guarantees that most participants will not break even.
Federal regulators have taken strong action against similar recruitment-based frauds. In March 2026, the Federal Trade Commission (FTC) distributed over $10.9 million to consumers who were victims of a credit repair pyramid scheme, which operated under names such as Financial Education Services. This action highlights the significant financial damage these schemes inflict on everyday people.
The Department of Justice also secured convictions against a Texas couple who ran the "Blessings in No Time (BINT)" pyramid scheme. This operation defrauded more than 10,000 individuals out of over $25 million by promising financial returns based purely on recruitment. The defendants used false promises and misleading statements to lure participants, demonstrating the deceptive tactics often employed by such organizations.
Another example involves the IYOVIA scheme, which the FTC and the Nevada Attorney General's office accused of scamming consumers, particularly young people, out of more than $1.2 billion since 2018. While IYOVIA claimed to offer financial training, authorities alleged it was a multi-level marketing scheme that prioritized recruitment over legitimate product sales. These cases show the scale and sophistication of modern pyramid schemes, which often adapt to new trends and target specific demographics.
The Securities and Exchange Commission (SEC) has also pursued enforcement actions against purported crypto-asset trading platforms and investment clubs that targeted retail investors through social media. These platforms often mask pyramid-like structures under the guise of innovative investment opportunities, further illustrating how recruitment schemes evolve to exploit public interest in emerging technologies.
Individuals who believe they have been defrauded can report such schemes to the FTC at ReportFraud.ftc.gov.