The Bitcoin 4 Passive website offers no public information about its ownership or management. The domain, bitcoin4passive.com, registered on September 25, 2016, uses private registration, obscuring its true operators. Alexa traffic data indicates Malaysia and India as the primary sources of visitors, suggesting the scheme may operate from one of these countries.
An official Facebook group for Bitcoin 4 Passive is administered by a profile named "Rayford Nicholas." This account, created earlier this year, appears to be fabricated, raising further questions about the scheme's legitimacy. A lack of transparent ownership is a common red flag for multi-level marketing operations, particularly those involving financial transactions.
Bitcoin 4 Passive does not offer any retail products or services. Instead, its affiliates market only the Bitcoin 4 Passive affiliate membership itself. Upon joining, an affiliate makes a gifting payment directly to the person who recruited them. These payments are bundled with advertising credits, which affiliates can use to display advertisements on the Bitcoin 4 Passive website. These credits serve as a nominal offering, often used by illegal gifting schemes to feign a legitimate product.
The compensation structure involves affiliates gifting Bitcoin to one another through a 2x5 matrix. This matrix places an affiliate at the top, with two positions directly beneath them, forming the first level. Each subsequent level doubles the number of positions, creating a total of five levels and 62 positions within the matrix. Gifting payments from both directly and indirectly recruited affiliates fill these positions.
The 2x5 matrix functions across five distinct payment tiers: Bronze, Silver, Gold, Diamond, and Bitcoin. To participate in the Bronze tier, an affiliate must make a gifting payment of 0.04165 BTC to their recruiter. They then receive 0.04165 BTC from two affiliates below them. The Silver tier requires a 0.06678 BTC gifting payment and yields 0.06678 BTC from four affiliates.
Progression continues to the Gold tier, which demands a 0.1670 BTC gifting payment and returns 0.1670 BTC from eight affiliates. The Diamond tier involves a 1.002 BTC gifting payment, with affiliates receiving 1.002 BTC from sixteen downline members. The final tier, named "Bitcoin," requires the largest gifting payment of 3.339 BTC and promises returns of 3.339 BTC from thirty-two affiliates.
Joining Bitcoin 4 Passive requires a minimum gifting payment of 0.04165 BTC. Full participation across all five tiers of the MLM opportunity totals 4.61643 BTC. This five-tier cash gifting model operates as a pyramid scheme, a structure prohibited by financial regulations in many jurisdictions, including those governing consumer protection and anti-fraud statutes. The scheme relies solely on the recruitment of new participants who make gifting payments, rather than the sale of any genuine product or service. Victims of such schemes often face significant financial losses, with little to no legal recourse due to the anonymous nature of the operators and the use of cryptocurrencies.