ABC Holdings, a crypto investment platform, operates without disclosing its leadership, effectively rebooting Arkbit Capital, an earlier scheme that received a June 2023 securities fraud cease and desist from the Arkansas Securities Department. The platform promises daily passive returns between 1.6% and 2.5% on cryptocurrency investments, ranging from $50 to $49,999, while featuring actors like Mike Wolfe and another playing "Delmar Estabrook" as its public faces.

The company's public-facing websites offer no information on who owns or manages the enterprise. Instead, three distinct domains, abcholdings.io, abcmining.me, and abcai.me, are used. All three registrations remain private, with abcholdings.io registered on September 28, 2023, followed by abcmining.me on October 27, 2023, and abcai.me on October 29, 2023. Such private registration is a common tactic among illicit investment operations.

Both abcmining.me and abcholdings.io explicitly reference "Arkbit Capital Holdings," a direct link to the crypto Ponzi scheme launched in late 2022. The original Arkbit Capital featured actor Mike Wolfe in the role of CEO "Thomas Brewer." Wolfe's headshot still appears on the abcmining.me website, though his active participation in promotional materials seems to have ceased before January 2023.

By December 3, 2022, Arkbit Capital released a YouTube video introducing a new CEO, "Delmar Estabrook." The actor portraying Estabrook speaks with a North American accent, suggesting he, like Wolfe, was hired talent. Estabrook continues to front ABC Holdings in current promotional videos, announcing Arkbit Capital's official rebrand. This rebrand occurred after the Arkansas Securities Department issued its cease and desist order against Arkbit Capital in June 2023 for securities fraud.

ABC Holdings offers no retail products or services. Its business model centers solely on selling memberships. Affiliates recruit new investors, who then invest USD equivalents in cryptocurrency, expecting daily passive returns.

The investment structure includes four tiers:
* Novice tier: investments from $50 to $4,999 yield 1.6% daily.
* Plus tier: investments from $5,000 to $9,999 yield 1.9% daily.
* Proficient tier: investments from $10,000 to $24,999 yield 2.2% daily.
* Supreme tier: investments from $25,000 to $49,999 yield 2.5% daily.

The multilevel marketing component pays affiliates for recruiting new investors. ABC Holdings pays a 6% commission on the cryptocurrency invested by personally recruited individuals.

Residual commissions are paid through a binary compensation structure. An affiliate occupies the top position, with two legs, a left and a right. Each level below doubles the positions, expanding indefinitely through recruitment. Daily, ABC Holdings calculates the new investment volume on both the left and right sides. Affiliates receive a 10% commission on the volume generated by their weaker side. That volume is then matched against the stronger side and cleared, with any excess volume on the stronger side rolling over to the next day. While technical membership is free, an initial investment of at least $50 is required to participate in the scheme.

Arkbit Capital's initial deception involved false claims of operating cryptocurrency mining facilities within Arkansas. The Arkansas Securities Department investigated and confirmed these operations were fictional. ABC Holdings now asserts it supplies energy to Arkbit Capital's nonexistent mining operations, referring to this fabricated entity as "ARK Energies." The scheme also incorporates narratives around data centers and artificial intelligence to create an illusion of legitimate business activity.

Despite the Arkansas Securities Department's findings that Arkbit Capital had no physical operations in the state, ABC Holdings maintains the pretense of an Arkansas presence. There are no verifiable external business operations that generate revenue from actual sales or services. Like its predecessor, ABC Holdings functions as a Ponzi scheme, relying on funds from new investors to pay supposed returns to earlier participants.

The collapse of such schemes is inevitable. When the recruitment of new investors slows or stops, the influx of new capital ceases. This starves ABC Holdings of the funds required to pay its promised returns, leading to its eventual failure. Historical data shows that in Ponzi schemes, the vast majority of participants lose their invested money when the operation unravels. The Arkansas Securities Department continues to monitor such illicit investment activities within its jurisdiction.