Polish prosecutors seized over $6.4 million from Lyoness bank accounts held at ING Bank Slaski SA in Poland. The funds, split between Polish zloty and euros, were recovered as part of an ongoing investigation into the company's activities within the country.
Warsaw Prosecutors concluded an investigation into Lyoness Europe AG, initiated on January 1, 2020. This probe specifically aimed to recover assets for victims affected by the company's operations. The seized cash originated from what prosecutors termed a "prohibited act," identified as the operation of a pyramid scheme.
Investigators detailed two primary violations of Poland's Penal Code. First, representatives of the Lyconet Marketing Program, formerly known as the Lyoness Loyalty Program, recruited individuals with the promise of earning income primarily by bringing in new participants. Second, Lyconess collected funds from participants through the sale of profit shares, an activity undertaken without the legally mandated permits required for such financial instruments.
The total seizure amounted to 21.09 million Polish zloty and an additional 950,163 euros. Combined, these sums convert to just over $6.4 million in U.S. dollars. These funds represent a significant recovery effort for those impacted by the scheme.
This recent action is not the first time Polish authorities have targeted Lyoness. In February 2014, Poland's Office of Competition and Consumer Protection (UOKiK) publicly declared Lyoness to be a Ponzi scheme. That declaration marked an early official warning from a national regulator.
A subsequent ruling from the Court of Competition and Consumer Protection in May 2016 found Lyoness's Terms and Conditions illegal under Polish law. The same court then certified Lyoness as a pyramid scheme in December 2019. This 2019 certification set the legal precedent for victims to pursue the recovery of their funds, directly leading to the current bank seizures.
After facing regulatory pressure in several countries, Lyoness rebranded its primary corporate identity to myWorld. Its multi-level marketing operations, however, continue under the Lyconet brand.
Website traffic data from Alexa indicates Lyconet recruitment efforts are currently active in Macedonia, Russia, and Kazakhstan. Meanwhile, myWorld's website traffic primarily originates from the United States, India, and Macedonia. These geographical shifts reflect a consistent pattern where Lyoness's operations decline in one market only to emerge in another, a trend observed since at least May 2012.
Hubert Friedl, an Austrian citizen, oversees Lyoness operations from Austria. Despite various court rulings emerging from Austrian courts over the years, Austrian authorities have not taken decisive action to shut down the enterprise. The lack of direct enforcement from Austria allows the company to continue its global activities.