MyAdvertisingPays, a scheme requiring a $49.99 entry fee per "credit pack," announced its official withdrawal from the United States market on October 13, 2015. The firm disclosed this decision within a lengthy update titled "The Most Important Update Ever Released," signaling a strategic shift to focus operations primarily within Europe. This move came as the company approached its two-year operational milestone, a critical juncture where many online financial frauds either collapse under their own weight or attempt a significant rebranding to extend their lifespan.
The company's stated reasons for abandoning the American market did not align with its own financial disclosures. Executives claimed that operating in US currency was no longer profitable, despite acknowledging that European transactions constituted 90% of their business volume. They characterized the American market as "steadily declining" and an inefficient drain on resources. Yet, the same announcement reassured US members that their referral commissions would continue to flow without interruption, directly contradicting the narrative of an unprofitable market.
This fundamental inconsistency points to regulatory pressures rather than genuine financial hardship in the United States. US authorities, particularly the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), possess broad powers to investigate and shut down illegal pyramid and Ponzi schemes. The cost of complying with US consumer protection and securities laws, or the risk of enforcement action, likely far outweighed any perceived profitability issues. By withdrawing direct marketing and operational presence, MyAdvertisingPays aimed to complicate any future investigations by US agencies, which face significant jurisdictional hurdles when pursuing entities based offshore.
The MyAdvertisingPays business model is a classic Ponzi scheme. Participants purchase "credit packs" for $49.99 each. These packs are ostensibly tied to advertising services, but their primary appeal is a promised fixed return, typically reaching $60 per pack over time. The crucial element, however, is that these payouts are not generated from legitimate advertising revenue or external investments. Instead, they are funded almost entirely by money from new investors buying additional credit packs. This unsustainable structure guarantees that early participants are paid with capital from later recruits, leading to an inevitable collapse once the influx of new money diminishes.
A key indicator of the scheme's questionable nature is its reliance on certain payment processors. MyAdvertisingPays utilizes iPayout, SolidTrustPay, and VX Gateway for its transactions. iPayout's involvement is particularly concerning given its history with high-profile financial frauds. The processor handled payments for TelexFree, a vast $3 billion Ponzi scheme that defrauded hundreds of thousands of investors globally. iPayout only suspended TelexFree's accounts in April 2014, the day before the SEC filed charges and obtained an emergency asset freeze against the company. Despite public promises of a compliance overhaul and stricter anti-money laundering (AML) and Know Your Customer (KYC) protocols following the TelexFree scandal, iPayout continued to service schemes exhibiting clear characteristics of financial fraud. The choice of payment gateways often provides insight into a company's operational risk profile, with processors known for lax oversight frequently attracting illicit enterprises.
The strategic relocation to Europe serves as an attempt to delay direct enforcement actions. While European Union member states have robust financial regulations, the fragmented nature of enforcement across multiple national jurisdictions can slow down multi-country investigations. For US regulators, pursuing assets or individuals in Europe requires navigating complex international legal frameworks, including Mutual Legal Assistance Treaties (MLATs), which are often time-consuming. This jurisdictional arbitrage provides MyAdvertisingPays with a degree of plausible deniability regarding its targeting of US investors, even as American affiliate networks continue to channel funds into the scheme.
For individual investors in the United States, MyAdvertisingPays' shift to Europe significantly complicates the recovery of lost funds. US regulatory bodies can pursue assets held domestically and seek restitution for victims through civil enforcement actions. However, funds transferred to foreign accounts become substantially more difficult to trace, freeze, and repatriate. Victims often find themselves relying on the outcome of lengthy international investigations or pursuing complex civil litigation in foreign courts, which can be prohibitively expensive and yield uncertain results. Many victims simply absorb their losses when a scheme moves offshore, unable to navigate the cross-border legal challenges.
The pattern of relocating or rebranding when a scheme reaches its two-year operational mark is not unique to MyAdvertisingPays. This period often coincides with the maturation of the initial recruit base and the increasing difficulty of attracting new investors at the necessary rate to sustain payouts. Such reboots are typically desperate attempts to reset the clock, shed negative publicity, or evade impending regulatory scrutiny. MyAdvertisingPays is now operating under the assumption that a geographical shift offers sufficient protection, but the inherent unsustainability of its Ponzi model means its liabilities will continue to accumulate regardless of its operational base.
Investors seeking information on potential recovery from investment fraud can consult resources such as the Financial Industry Regulatory Authority (FINRA) or the SEC's Office of Investor Education and Advocacy.