Amsterdam authorities have seized an undisclosed sum of money from Crowdfunding International, according to a letter penned by attorney Johan Vissers on August 30th. Vissers claims the Dutch government suspects the organization of operating a pyramid scheme, leading to the confiscation of funds held by a third party. The lawyer's communication aims to assuage victim concerns that their investments have vanished entirely.
Crowdfunding International's operational structure relied on new members paying into a matrix cycler system. Investors paid an initial 200 Euros, with subsequent recruitments theoretically flowing upwards through various tiers. Such schemes inevitably falter when the influx of new participants slows.
Instead of admitting the business model's collapse, the company distributed Vissers' letter. In it, the attorney asserts that the Dutch government is holding the funds but has initiated no formal proceedings or secured any convictions against Crowdfunding International. Vissers' letter, however, fails to identify any government officials or agencies involved in the seizure, nor does it explain the source of his information. This lack of verifiable detail casts doubt on the claims, especially since no official Dutch investigation into Crowdfunding International has been publicly announced.
Following the apparent shutdown of Crowdfunding International earlier this year, its operators launched a similar venture in the Netherlands called Community Collect. This new entity utilizes the same matrix gifting cycler model but is registered as a Spanish shell company. Vissers’ letter acknowledges this rebranding, attributing it to "economic and legal reasons."
The timing of the attorney's letter raises questions. Community Collect, like its predecessor, is reportedly underperforming. In both schemes, a significant portion of invested funds is typically siphoned off by administrators through pre-loaded positions. The predictable outcome for victims is financial loss.
Vissers' letter appears designed to redirect blame away from Crowdfunding International's management and towards the Dutch government. However, the core issue with gifting cyclers is their inherent structure. Funds flow from new to existing members; there is no intrinsic value creation. Any money remaining within the system resides in bank accounts controlled by administrators. While these accounts could be seized, victims would not have had access to those funds regardless. When a cycler collapses, administrators often retain any trapped capital. As Community Collect faces its own inevitable downturn, it is plausible that similar claims about Spanish authorities seizing funds may emerge.