WCM777 abruptly closed its US operations in early October, just five months after a grand opening event in Los Angeles. The company, which offered 100-day returns on investments, stated its US offices in City of Industry are now shut.
The Hong Kong-based company, officially registered in the British Virgin Islands, operated a clear Ponzi scheme. It promised affiliates 100-day return on investment across five tiers. The only revenue source on the MLM side came from new affiliate funds.
WCM777 had expanded into the US market around June. On June 17, it held a "grand opening" at the Pacific Palms Hotel in Los Angeles, California. The company claimed over 500 affiliate investors attended this event. Twenty attendees received awards for their financial contributions and recruitment efforts.
WCM777 also claimed "great support from the California government." It accepted a "Certificate of Recognition" from the City of Walnut during its US push.
But by October 4, WCM777's US offices were abruptly shut. Rumors circulated about an FBI investigation behind the decision. While an FBI probe cannot be confirmed, WCM777 did suddenly abandon its US operations, retreating to Hong Kong.
An announcement on the WCM777 website stated, "The USA operation is closed. The company's US customer service center, City of Industry office is closed." The US customer service phone number and email address would remain active.
No official reason was given for the retreat. However, WCM777's announcement mentioned a "global legitimacy strategy is to set up different system in each county to abide by local laws." Ponzi schemes are illegal in the US, which could explain the sudden termination.
WCM777 is now targeting new markets. The company announced plans to "set up foothold in Dubai to bless (the) Middle East," adding that it had "already purchased (an) office there."
The WCM777 withdrawal from the US draws comparisons to the GoFunRewards Ponzi scheme. GoFunRewards also operated a points-based Ponzi with front businesses. It too pulled out of the US, citing "advice from legal counsel," just a month before WCM777 began its US expansion. GoFunRewards then retreated to its primary base in Hong Kong.