LEO withholds commissions, Dan Andersson confirms Ponzi scheme

LEO owner and CEO Dan Andersson has announced existing commission balances are being held hostage, pending new investment from recruited affiliates.

Andersson’s announcement was made in a “Special Global Associate Meeting”, held yesterday.

Last we heard Andersson was under criminal investigation in Pakistan. To that end authorities had
forbidden him from fleeing the country
.

In April the Pakistani SEC
shut down a shell company related to LEO
.

As far as we know Andersson (right) is still prohibited from leaving Pakistan, and the regulatory investigation into LEO continues.

What with LEO’s latest incarnation being an MLM crypto Ponzi scheme, naturally this has been terrible for business.

Or as Andersson puts it, LEO now finds itself in an “almighty cash crunch”.

[22:51] Our balance sheet is very, very healthy. We have assets, we have properties, we have a balance sheet that is strong as anything.

We have some properties that are worth sort of four million pounds. We have claims on others that uh… let me not talk about that, it’s too painful.

But we have a balance sheet that’s very, very strong and very, very cool. That’s terrific.

But the business runs on liquid cash. And of course when the liquid cash dwindles, then you as a business leader have to do something about that.

Rather than come clean about
his arrest
and status in Pakistan, Andersson dances around the elephant in the room.

The closest he gets to acknowledging LEO’s legal problems, is stating the company has racked up “two million pounds of legal fees on different things”.

LEO began as a
personal development pyramid scheme
back in 2012. Like many MLM scams, the company
pivoted into cryptocurrency
in 2014.

This saw the introduction of LEO Coin, which has operated as a Ponzi scheme through an internal exchange since launch.

On or around August 2015 LEO Coin was listed publicly. At launch LEO Coin hovered around five cents.

From 2017 however it’s been in continuous decline, and now trades publicly at 2.2 cents.

Andersson refers to LEO’s sale of LEO Coin internally as a Digital Marketing Service (DMS).

In short LEO generates LEO Coin demand, solicits investment for the coins internally and pays commissions on affiliate investor recruitment.

This is your standard MLM crypto Ponzi model.

Trouble is, with Andersson stuck and new investment plummeting, LEO has (supposedly) run out of money to honor internal exchange withdrawals.

As part of his Special Global Associate Meeting announcement, Andersson inadvertently reveals LEO has been paying internal exchange withdrawal requests with invested funds.

[24:32] The DMS product has cost us dearly.

When we launched it, it was a fantastic opportunity. The crypto markets were full of opportunities that we were able to capitalize on.

But then that market, those markets contracted and very, very quickly we got to the stage where 
we had to kind of support the DMS payouts using our digital currency reserves.

We of course

🤖 Quick Answer

What actions has LEO's CEO Dan Andersson taken regarding affiliate commissions?

What is LEO's current business model according to recent reports?
LEO operates as an MLM cryptocurrency Ponzi scheme in its latest incarnation. The structure involves recruiting affiliates and distributing commissions contingent upon continued investment, characteristic of pyramid schemes.

What legal circumstances surround Dan Andersson and LEO operations?
Andersson faces criminal investigation in Pakistan with travel restrictions imposed. Pakistani authorities shut down a shell company connected to LEO in April. The regulatory investigation into LEO continues while Andersson remains prohibited from leaving Pakistan.

What financial situation does LEO currently face?
LEO is experiencing severe financial difficulties

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