Daniel Schwartz, operating 3T Networks, leads a cryptocurrency and travel multi-level marketing scheme that appears to offer unregistered securities to US residents. The company lists addresses in Nevada and Singapore, yet Schwartz himself resides in Thailand. Its website hints at expansion into Asia, with "coming soon" offices in the Philippines and Thailand.

Schwartz's professional history includes a claim of three decades in sales and marketing, with $65 million in closed deals over five years. However, no verified MLM history exists for him. Notably, six months before launching 3T Networks, Schwartz debuted SigmaCoin, a cryptocurrency that launched around 12 cents last September before collapsing to 7 cents and appearing abandoned. Social media activity for SigmaCoin went quiet, and website traffic dropped significantly following its decline.

3T Networks does not offer retail products for sale. Instead, it sells affiliate memberships at three tiers: Basic Trader ($149), Advanced Trader ($499), and Pro Trader ($999). These memberships grant access to a bundle of services including "Traffic Light Trading" signals, ICO reports, a mining contract, a "Living Book," "3T Coins," "3T Incentive Points," and a Travel Certificate. Beyond a few vague promotional videos, the company provides almost no specific details on most of these bundled services.

The Travel Certificates claim to offer discounted travel through a third-party merchant, with users logging in to enter a code and browse packages. Maximum savings amounts apply. The "3T Coins" are presented as another cryptocurrency, presumably an initial coin offering (ICO) attempt, despite the failure of Schwartz's previous SigmaCoin.

3T Networks' compensation plan heavily favors recruitment. It promises a 25% retail commission, but the company does not disclose what products "preferred customers" might buy or what they cost. The primary focus is on recruiting new affiliates. Binary Residual Commissions pay $75 when an affiliate's binary team achieves 900 points, generated by membership fees. A Basic Trader membership earns 100 points, Advanced Trader 250, and Pro Trader 500. The weekly cap for these commissions is $25,000 per binary position. Affiliates earning $10,000 for three consecutive weeks receive a new binary position.

Matching Bonuses offer a percentage of binary commissions earned by downline members across four levels, ranging from 5% to 25% on Level 1, 10% to 25% on Levels 2 and 3, and 10% to 15% on Level 4. These percentages depend on an affiliate's rank, but 3T Networks does not provide any criteria for rank qualification. Unilevel Residual Commissions provide $50 for recruiting an Advanced Trader on Level 1, and $25 on Levels 2 and 3. For Pro Traders, these figures increase to $100 on Level 1 and $50 on Levels 2 and 3.

Other recruitment incentives include a Fast Start Bonus of $570 for recruiting three Pro Pack affiliates within 60 days. A Car Bonus of up to $2,000 is available for affiliates who earn $3,000 in commissions for three consecutive four-week periods, again based on undisclosed rank criteria. Rank Achievement Bonuses offer one-time payouts ranging from $250 for reaching Ruby 2 to $500,000 for Double Crown Diamond, with no qualification details provided. Additionally, 3T Networks allocates 2% of global sales into Diamond and Crown leadership pools, with shares paid quarterly to qualifying affiliates.

The offering of "3T Coins" raises significant regulatory concerns. Launching an ICO to US residents without proper registration with the Securities and Exchange Commission (SEC) is illegal, regardless of where the company claims to be based. The company's marketing mentions these coins, but no public information about them exists. This mirrors the pattern of Schwartz's previous, failed SigmaCoin. Investors in SigmaCoin faced losses, and the lack of transparency around 3T Coins suggests a similar trajectory.

Furthermore, 3T Networks' claims of mining contracts that generate "a few dollars" a day in Bitcoin earnings represent another passive investment. This type of offering, promising returns based on the efforts of others, typically falls under the definition of a security and requires registration with financial regulators. The same applies to rumors of an automated trading system that would lock up funds for a week, which would also constitute a securities offering.

ICO reports, while potentially legitimate, carry a significant risk of funneling affiliates into external lending ICO schemes, many of which operate as Ponzi schemes. One affiliate's marketing material described an ICO offering with a $10,000 minimum buy-in, with the company pooling smaller affiliate investments to participate. This activity—soliciting investment for passive returns—is a clear securities offering.

Alexa data indicates the United States as the largest source of traffic to 3T Networks' website. The SEC has jurisdiction over securities offered to US residents. Neither 3T Networks nor Daniel Schwartz appear in the SEC's EDGAR database, confirming that these offerings are unregistered. This lack of registration means 3T Networks is illegally offering securities in the US. The absence of transparent retail product pricing, coupled with a compensation plan heavily reliant on affiliate recruitment, also raises concerns that 3T Networks operates as a pyramid scheme.

Regulators in the US have actively pursued and shut down numerous crypto-based MLM companies, such as USI-Tech, BitConnect, and R2B Coin, for offering unregistered securities. The location of the operators does not exempt them from these regulations. Such investigations often result in significant financial losses for investors. Given Daniel Schwartz's history with a failed cryptocurrency and 3T Networks' apparent disregard for securities laws, the risks for participants remain extremely high. Anyone considering involvement should consult the SEC's investor alerts on crypto asset scams at investor.gov.