Good news for those of you who’ve been asking about claiming your losses in WCM777, with the Receiver late last week filing a proposed claims process.

Over $20 million will be returned to WCM777 victims, with the Receiver anticipating between 24,000 to 96,000 claims.

Ponzi schemes like
WCM777
allow scams with a scam to take place, with many investors depositing funds directly with their uplines rather than with the company itself.

In exchange for real funds, these uplines (typically top investors), then transfer useless Ponzi points to their unsuspecting victims.

This leaves no record of funds being exchanged on the Ponzi scheme’s database or financial records, with the transfer of points the only verifiable metric.

And even then, how much was paid for the points can be disputed, unless transactions are further verified through bank account activity.

Note that the points themselves are not claimable, 
only the funds invested into WCM777.

This is but one of the many challenges facing the WCM777 Receiver, such that a third-party claims administrator has been brought in to assist:

The reasons for the uncertainty with regard to the estimated number of potential investor claimants are many, but primarily stem from the lack of a complete or trustworthy company database, the location of many investors outside the United States, the fact that a significant number of investors gave their money to other individuals who pooled the funds with those of other investors before investing with the Receivership Entities, and the issuance and trading of “points.”

These issues, the Receiver’s concerns with regard to the potential for fraudulent claims, and the extraordinary cost of manually reviewing thousands of claims has lead the Receiver to propose a three phase claims process using a third party claims administrator capable of automating the intake and review of claims and ultimately assisting in any distribution.

As to the claims process itself;

The first phase of the claims process will involve developing the web-based claim portal.

This first phase will largely be an automated process and is expected to result in an identifiable group of investors and other claimants, leaving the manual claims review and determination of the amount of allowed claims to phase two.

Phase two will be partially automated and partially manual.

Using the information gathered from claimants as well as data the Receiver has obtained and verified from the Receivership Entities’ records and third party sources (e.g., bank records), the Receiver and the claims administrator will work to establish proposed allowed claim amounts for each claimant, which amounts can then be used as the basis for a proposed distribution plan.

Much of the success of this proposal depends on the information submitted in victim claims. Failing that, the Receiver stipulates

if the quality or quantity of information received in phase one of the process is such that the Receiver believes phase

🤖 Quick Answer

What is the WCM777 Receiver's claims process?
The Receiver has filed a proposed claims process allowing WCM777 victims to recover losses. Over $20 million will be distributed among an anticipated 24,000 to 96,000 claims, establishing a formal mechanism for investors affected by the Ponzi scheme to seek compensation.

How did WCM777 operate as a Ponzi scheme?
WCM777 functioned through direct fund transfers between investors and their uplines rather than the company itself. In exchange for real money, uplines transferred useless Ponzi points to investors, leaving no verifiable records on the company's financial database except the points transfer.

What complications arise from WCM777's structure?
The scheme's structure created documentation problems since funds bypassed official company records. Only point transfers are verifiable, and even these lack clear documentation regarding actual payment

🔗 Related Articles

- BigWhale claims no association with Quizam Media Corp
- BoN overturns CBI Global Ponzi funding decision
- Crypto-T Review: 2.12% to 3.075% daily ROI Ponzi scheme
- Speak Asia CEO Manoj Kumar investing in… Brazil?
- Laetitude and Swapoo are having wallet and bot problems