The 251 Coins scheme, launched with a privately registered domain on May 16, 2018, operates as an anonymous cryptocurrency gifting program, offering no identifiable leadership or retail products. Potential participants are asked to send cryptocurrency to existing members, with the promise of receiving "gifts" from their own recruits. This structure lacks any commercial activity beyond the continuous enrollment of new individuals.
The Federal Trade Commission (FTC) defines pyramid schemes as programs that promise participants payments or services primarily for enrolling other people into the scheme, rather than from the sale of real goods or services to the public. Gifting schemes, like 251 Coins, are a specific type of pyramid scheme. They disguise recruitment payments as voluntary "gifts" or "donations," attempting to circumvent anti-pyramid laws. However, regulators consistently identify these operations as illegal.
Participants join by "gifting" cryptocurrency to an upline member. This payment activates their position within a 3x5 matrix, making them eligible to receive gifts from subsequent recruits. The matrix expands geometrically: an affiliate sits at the top, sponsoring three direct positions. Each of those three then sponsors three more, creating nine positions on the second level. This pattern continues, with each level holding three times the number of slots as the one above it, through five levels.
The scheme offers entry through Bitcoin, Ethereum, or Dash, each running on its own matrix tier. Participants can choose to join one, two, or all three cryptocurrencies. A minimum entry of 0.0001 Bitcoin, 0.001 Ethereum, or 0.001 Dash is required.
For Bitcoin, the gifting levels are structured as follows: Level 1 requires a 0.0001 BTC gift and promises 0.0001 BTC from three individuals. Level 2 involves a 0.0002 BTC gift to receive 0.0002 BTC from nine people. Level 3 demands a 0.001 BTC gift, with the expectation of 0.001 BTC from twenty-seven people. Level 4 requires a 0.01 BTC gift, promising 0.01 BTC from eighty-one people. The final Level 5 calls for a 0.1 BTC gift, with a projected return of 0.1 BTC from two hundred and forty-three individuals.
The Ethereum matrix follows a similar progression. Level 1 involves a 0.001 ETH gift for returns from three people. Level 2 asks for 0.002 ETH, promising returns from nine people. Level 3 requires 0.01 ETH, targeting twenty-seven people. Level 4 involves 0.1 ETH, aiming for returns from eighty-one people. Level 5, the highest tier, asks for a 1 ETH gift, expecting 1 ETH from two hundred and forty-three people.
The Dash matrix, too, mirrors these structures: Level 1 requires 0.001 DASH for returns from three people. Level 2 asks for 0.002 DASH, promising returns from nine people. Level 3 requires 0.01 DASH, targeting twenty-seven people. Level 4 involves 0.1 DASH, aiming for returns from eighty-one people. Level 5, the highest tier, asks for a 1 DASH gift, expecting 1 DASH from two hundred and forty-three people. The stated Dash Level 3 requirement of 0.01 ETH in the scheme's documentation appears to be a clerical error, as it should correspond to Dash.
For a single participant to fully complete a 3x5 matrix, a total of 363 new recruits must join directly beneath them across all five levels. This geometric progression means the number of new participants required quickly becomes unsustainable. The scheme’s viability relies entirely on an ever-expanding base of new recruits, which is a finite resource.
When recruitment slows or stops, the matrices inevitably stall, leaving the vast majority of participants unable to recoup their initial "gifts" or profit. The anonymous administrators and early joiners typically occupy the top positions, benefiting from the influx of funds from subsequent participants. Those who join later are mathematically guaranteed to lose their money. This dynamic is a hallmark of all pyramid schemes.
The terms and conditions of 251 Coins explicitly state, "All donations you voluntarily and directly send to a fellow member are final. No Refunds." This clause ensures that victims have no recourse within the scheme itself once funds are transferred. Recovery of cryptocurrency sent to anonymous entities in cross-border scams is exceptionally difficult, often requiring extensive international law enforcement cooperation.
Victims of cryptocurrency gifting schemes or pyramid scams can report incidents to the Federal Trade Commission (FTC) or the FBI's Internet Crime Complaint Center (IC3).