As recruitment across South Africa slows down, the Crowd1 Ponzi scheme will inevitably spread across African borders.

Neighboring Namibia is having none of it, opting to instead ban Crowd1

The Bank of Namibia, the country’s top financial regulator, prohibited Crowd1 last Friday.

The core business activity of Crowd1 is to introduce new members of the public to its business practice.

Participants who join as members are encouraged to recruit new members through promises of bonuses and additional owner rights.

The primary source of income for Crowd1 is generated through the recruitment of new members.

The primary source of income for Crowd1 is the sales of membership packages to new members.

BehindMLM
reviewed Crowd1
last August and concluded the same. An MLM company paying returns out of subsequently invested funds is of course a Ponzi scheme.

The Bank of Namibia’s ban follows an investigation into the company. When the investigation began and for how long it ran is unclear.

Being a European Ponzi scheme, Crowd1 has no physical operations in Namibia. Nevertheless the Bank of Namibia has
ordered
the company to cease soliciting investment nationally.

Local media
report
that those who continue to promote Crowd1 in Namibia face fines of R1 million (~$66,139 USD), or ten years in prison.

At the time of publication Alexa cites South Africa as the largest source of traffic to Crowd1’s website.

Indeed most of the review comments left in defense of the Ponzi scheme appear to originate out South Africa.

South African authorities have thus far failed to take any action against the scam.

🤖 Quick Answer

What is Crowd1 and why was it banned in Namibia?
Crowd1 is a multilevel marketing scheme primarily generating revenue through recruitment of new members and sales of membership packages rather than legitimate product sales. The Bank of Namibia, the country's financial regulator, banned Crowd1 last Friday after determining it operates as an illegal Ponzi scheme, following similar enforcement actions across Southern Africa.

How does Crowd1's business model function?
Crowd1 recruits members who are encouraged to enroll additional participants through promises of bonuses and owner rights. The company's core business activity centers on member recruitment rather than product distribution. Income is primarily derived from membership package sales and recruiting new participants into the scheme's structure.

What prompted Namibia's regulatory action against Crowd1?
As recruitment activities slowed in South Africa, industry analysts predicted the scheme would expand into neighboring African countries. Namib

🔗 Related Articles

- PGI Global reboots Ponzi, Helen L Graham promoted to CEO
- BuddyX Review: BDYX token pump & dump Dubai Ponzi
- My Micro Profits Review: 0.13% hourly ROI Ponzi scheme
- Celion Hub Review: Jonathan Sifuentes fronts another MLM pyramid
- CashFX Group sets up BullnBear Pay to pay withdrawals