GoFunRewards, a multi-level marketing penny auction company, ceased all United States operations on May 1, 2013. Its Hong Kong-based owner, eAdGear, cited "legal advice" as the reason for terminating all US affiliates and shutting down its "Go Fun Places" platform.
The company, which launched its revenue-sharing model in early 2013, faced an unstable leadership from the outset. Randal Williams, its initial CEO, left to establish his own revenue-sharing venture, JubiRev, shortly after GoFunRewards' launch. Glen Jensen, formerly CEO of Agel, then briefly took the helm, resigning in late March after just over a month in the position.
eAdGear, based in Hong Kong, issued a brief statement on Facebook confirming the cessation of US operations. The company stated it would continue to operate solely from Hong Kong. Reports also indicate that US-based Vice-President Mike Driggers resigned from GoFunRewards around the same time.
Signs of the impending shutdown appeared on April 25, 2013. GoFunRewards announced a shift in its banking arrangements, moving funds from HSBC Limited to the Chinese-owned, Hong Kong-based Hang Seng Bank Limited.
Affiliates had previously reported a steady decline in daily returns on investment. One user noted their daily earnings had fallen from nearly 2% to 0.8-1%, barely breaking even. Another observed a drastic drop to around 0.03% daily. Many expressed concern over their accumulated funds, with one claiming an initial $1500 investment had dwindled to $700, yielding only $4.08 daily.
The fate of funds invested by US affiliates remains unclear following the termination. An affiliate questioned the company on its Facebook page about a $2500 investment made six months prior, but received no public response. With funds now held in an offshore Chinese-owned bank, recovery efforts for US investors are anticipated to be challenging.