myWorld International AG, known previously as the Lyoness scheme, filed for insolvency across Europe this week following a restructuring hearing in Austria. The company owes 22.7 million euros in direct debt and faces over 50 million euros in unpaid taxes. Its owner, Hubert Freidl, has not been seen publicly since September 2024.
The company's financial state is dire. It carries 22.7 million euros in direct debt to creditors and owes approximately 50 million euros in unpaid taxes. Total assets stand at only 15 million euros. Over 2,000 creditors, including various tax authorities across Europe, await payment. An additional 5 million euros in liabilities comes from "vouchers" issued through its multilevel marketing operations. These vouchers are tied to customer loyalty programs and merchant agreements.
myWorld's collapse stems from declining sales. Revenue projections were not met, leaving the company unable to meet its financial obligations. This marks the third time the company, or its predecessor, has filed for insolvency. The operation started as Lyoness in 2003, presenting itself as an "accounting units" Ponzi scheme. Over two decades, it evolved. Spain's National Police later identified it as a full-fledged pyramid scheme.
Multiple countries have officially declared the scheme fraudulent. Spain, for example, has documented it as a Ponzi scheme and initiated criminal proceedings. Courts in Italy, Poland, and Switzerland have also ruled against Lyoness/myWorld operations in various capacities. But Austria, where myWorld is registered and where Hubert Freidl is based, has not prosecuted anyone involved in the scheme. This inaction has drawn increasing scrutiny from international observers and affected parties.
Despite the insolvency, myWorld plans to continue operations. A skeleton crew of 116 employees will remain, a significant reduction from its previous payroll. Under the proposed restructuring plan, creditors will receive only 20 percent of the money owed to them. These payments will be spread out over two years. The plan assumes the company can generate sufficient future revenue to meet even this reduced obligation.
Hubert Freidl, myWorld's Austrian owner and the head of its parent operations, has not communicated publicly since September 2024. His current location remains unknown. This disappearance coincides with growing legal pressure from outside Austria. Last month, authorities in Spain arrested a myWorld Managing Director on fraud charges. This arrest highlights the diverging approaches to the company's activities across different European jurisdictions.
The timing of myWorld's implosion compounds the damage for thousands of participants. Those involved in myWorld's shopping and commission network face significant financial losses. Vouchers, once promised as cash equivalents or future discounts, are now essentially worthless for millions of euros. Small business operators who paid fees to join the system, hoping to attract customers through myWorld's loyalty programs, have seen their investments vanish.
Austrian regulators now face mounting pressure. They must explain why they allowed the operation to continue for years, despite growing evidence of fraudulent activity and legal actions taken by other European nations. While other countries moved to investigate and prosecute, Austria remained largely inactive. The collapse of myWorld forces a reckoning for a scheme that profited by preying on individuals seeking alternative income streams.
For the thousands of victims holding worthless vouchers and awaiting a fraction of their money, justice appears distant. They will collect pennies on the dollar over the next two years, if myWorld survives the restructuring process at all.