Today on April 10th, 2023, BehindMLM turned thirteen.

For too many years I’ve been wanting to put out an annual post discussing where the MLM industry is at.

I last did this in 2015 but since then one thing or another has come up around this time of year. Typically, if there’s no news to cover I look at my review list and have decided to focus on that instead.

This year there’s about three companies on my shorter review list. I tend to get through these before tackling larger reviews.

I can’t remember every year but, due to the explosion of MLM crypto fraud, typically my shorter review list has had anywhere between fifteen to thirty companies to review.

No matter how quickly I got through reviews though, there was always more companies being added.

The reason things are different this year is simple: following the Terra/Luna collapse in May 2022, crypto is general has nosedived.

The decline of MLM crypto fraud

It took a while for this to translate across to MLM related crypto fraud but, slowly but surely, overall MLM crypto launches are way down. Existing MLM crypto companies are struggling to stay afloat – if they haven’t already collapsed.

As far as I can tell, the pool of new victims entering MLM crypto schemes has declined dramatically. This started around August 2022 and began to peak running into Christmas.

In early 2023 I noted a number of schemes launched with domains registered pre May 2022. There seems to have been a pause on a number of launches following Terra/Luna.

Universally these schemes failed to gain any traction. Simply put: the MLM crypto climate isn’t any better today than it was throughout Q3 and Q4 2022.

Hopefully the MLM crypto fraud space continues to decline. This will have a lot to do with crypto in general though.

US authorities are spearheading efforts to tackle cryptocurrency in general (we’re past the point of pretending it has any legitimate use-case).

Do Kwon, the guy who ran Terra/Luna, was
recently arrested trying to board a flight
from Montenegro to Dubai.

Sam Bankman-Fried, who ran the collapsed FTX exchange Ponzi scheme, was
criminally charged and arrested
back in January.

The SEC
filed securities fraud civil charges against Justin Sun and TRON
on March 22nd.

The CFTC
filed commodities fraud civil charges against Changpeng Zhao (CZ) and Binance
on March 27th.

Criminal charges against both Sun and CZ are likely pending.

If you look at bitcoin you might be wondering why, in spite of these events, it’s currently sitting at ~$28,000.

This is mostly due to the tether pump and dumpers (push button on laptop, generate billion tether on demand, sell tether for USD, use USD to buy and pump bitcoin, repeat).

Look for legal action against tether and its operators after criminal charges against Sun and CZ have dropped – possibly earlier depending on what’s going on behind the scenes.

In between the cases above, there have been multiple crypto exchange Ponzi schemes retreating from the US, an

🤖 Quick Answer

What is BehindMLM's State of the Scam 2023 report about?
BehindMLM's 2023 report commemorates the website's thirteenth anniversary on April 10th, 2023. It discusses the current state of the multi-level marketing industry, including the proliferation of MLM-related cryptocurrency fraud. The author notes that despite reviewing numerous companies from their review list, new fraudulent MLM schemes continue to emerge at an accelerating rate.

Why is 2023 considered different from previous years in MLM fraud?
The explosion of MLM cryptocurrency fraud has significantly altered the landscape compared to previous years. While BehindMLM's shorter review list previously contained fifteen to thirty companies, the continuous addition of new fraudulent schemes represents an unprecedented challenge in tracking and documenting scam operations.

When was the last comprehensive annual analysis conducted by BehindMLM?

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