A California man has been hit with an SEC lawsuit for running two virtually identical bitcoin Ponzi schemes that bilked investors out of $3.6 million combined.

Ryan Ginster orchestrated the frauds under different company names—Social Profimatic and My Micro Profits—using the same playbook and purchasing Ponzi scripts from the same HYIP software vendor. The SEC alleges Ginster operated both schemes himself, with neither company existing as a legitimate separate entity.

Social Profimatic came first, launching in 2018 and promising an impossible 8% daily return. Do the math: compounded annually, that's a 1.5 trillion percent return. The scheme lasted just over a month but still managed to haul in $844,667 in bitcoin from over 9,000 separate investor deposits totaling 98.12 BTC.

The mechanics were pure fiction. Ginster claimed investor money would be funneled into "social inventory" that would be sold to business owners on demand. What actually happened: he transferred the funds between at least five digital wallets he controlled and converted bitcoin to regular currency to cover his personal expenses. There was no social media marketing. There was no legitimate business.

My Micro Profits followed two years later in 2020, this time dangling a 0.13% hourly return alongside typical pyramid recruitment commissions. The scheme ran longer and pulled in far more money—$2.8 million from at least 9,916 separate bitcoin deposits. Within a week of public exposure, investors started screaming about non-payment.

This time Ginster dressed up the fraud with the usual crypto-Ponzi window dressing: transaction processing fees, cloud hosting, cryptocurrency trading, and advertising arbitrage. Pick whatever sounds technical enough to fool people. Ginster transferred incoming funds to his own wallets just as he had with Social Profimatic. No trading happened. No arbitrage occurred.

What gave Ginster away was his own handwriting. The SEC obtained an undated note where Ginster outlined his proof of concept for the Microprofit system. He described a "program that checks total deposits each day and then puts together random report[sic] to show income generated." Random reports. Not actual profits. Not real returns. Just numbers designed to keep victims believing their money was working.

Ginster operated both schemes under assumed names, including "Ryan Oakley," when contacting the HYIP software vendor. He kept the operations deliberately compartmentalized but relied on identical infrastructure and tactics because the Ponzi formula works the same way regardless of branding.

The SEC's investigation corroborates what independent researchers at BehindMLM had already documented. Social Profimatic got reviewed in April 2018 and collapsed almost immediately. My Micro Profits arrived in July 2020 and crumbled just as fast when people realized their withdrawal requests weren't getting processed.

The pattern is unmistakable. Same operator. Same software. Same lies. Different names. Ginster essentially franchised his own fraud, confident that enough new victims would cycle through before anyone noticed the old scheme had vanished.

🤖 Quick Answer

What were the two Ponzi schemes operated by Ryan Ginster?
Ryan Ginster orchestrated Social Profimatic and My Micro Profits, two virtually identical bitcoin Ponzi schemes. Social Profimatic launched in 2018, promising 8% daily returns and defrauding over 9,000 investors of 98.12 BTC ($844,667). My Micro Profits employed identical methodology using the same HYIP software vendor, collectively bilking investors of $3.6 million.

How did the SEC characterize Ginster's fraudulent operations?
The SEC alleged that Ginster personally operated both schemes under different company names, neither representing legitimate separate entities. Both frauds utilized identical playbooks and purchased Ponzi scripts from the same HYIP software vendor, demonstrating coordinated criminal intent and systematic investor deception across multiple platforms.

**What returns did Social

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