My Advertising Pays just got its funds frozen by its credit card processor—the same warning sign that preceded the collapse of Traffic Monsoon, a nearly identical scheme shut down by the SEC.

The company sent an email to affiliates this week announcing the freeze. The processor had locked up My Advertising Pays' USD Reserve Fund and was withholding Euro funds for stretches as long as six months, with no explanation given. The company said it had no choice but to suspend all transactions, both financial and otherwise, until the issue resolved.

My Advertising Pays blamed the processor. The processor is almost certainly responding to what it knows about My Advertising Pays' business model.

Here's why: My Advertising Pays operates as a Ponzi scheme, using the same "adcredit" model that Traffic Monsoon used before regulators shut it down. After the SEC moved against Traffic Monsoon, payment processors received subpoenas identifying them as participants in the fraud. Processors that handled Traffic Monsoon money now face clawback litigation—meaning they could be forced to return stolen funds to victims.

That history is instructive. PayPal froze Traffic Monsoon's funds for six months in 2014. That freeze marked the beginning of the end for the scheme. The SEC shut Traffic Monsoon down shortly after.

My Advertising Pays' founder Mike Deese knows exactly how this story ends. He's already deployed the same legal threats that Traffic Monsoon made, claiming the company will sue the processor to recoup the funds immediately if action isn't taken.

The threat carries no weight. Payment processors are required by law to file Suspicious Activity Reports with authorities when they detect potential fraud. If My Advertising Pays' processor has flagged the company—which it almost certainly has—the processor is now coordinating with regulators. Releasing the frozen funds would violate that obligation.

Affiliates betting on a reversal should prepare for disappointment. The funds will likely remain frozen, and the company will face increasing pressure from law enforcement. Traffic Monsoon's shutdown showed what happens next: regulatory action, criminal referrals, and the unraveling of the scheme.

🤖 Quick Answer

What happened to My Advertising Pays' funds?
My Advertising Pays experienced a freeze of its USD Reserve Fund by its credit card processor, with Euro funds withheld for up to six months without explanation. The company subsequently suspended all transactions pending resolution of the issue with the payment processor.

Why did the credit card processor freeze the funds?
The processor likely responded to concerns about My Advertising Pays' business model structure. The company operates using an "adcredit" model similar to Traffic Monsoon, a scheme previously shut down by the SEC for operating as a Ponzi scheme.

What is the significance of the Traffic Monsoon comparison?
Traffic Monsoon was a nearly identical scheme that collapsed after its funds were frozen by a credit card processor. My Advertising Pays' similar freeze represents a comparable warning sign of potential regulatory action and structural illegality in its business operations.

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