You can help us put a stop to online scams before they grow too big and end-up ruining thousands of lives. A scam is a scam, doesn’t matter if it’s big or small. Now that this is out of the way, let’s get started with the review.
Last September, BehindMLM first became aware of Crypto Family. At the time, the Ultron/Mavie Global Ponzi scheme was being promoted by Crypto Family.
I decided to check out the website that a reader supplied after I received a question regarding Crypto Family. This introduced me to Crypto Family member Dorde Petrovic.
In July 2022, Petrovic’s Crypto Family scam quest began. Petrovic is the administrator of the “Passive Income” Facebook group, which has 11 members and promotes the several frauds perpetrated by the Crypto Family.
Nebojsa Katic, the founder of Crypto Family, is in charge.
With Organo Gold and the Lyoness Ponzi scheme, Katic, who is originally from Croatia, started his MLM career.
Katic was advertising Essens in 2019. According to Katic’s Crypto Family bio, he rebranded as a crypto bro in 2014.
Crypto Family claims to have “around 56,000 members” as of November 2022.
I believe Katic had no prior experience with cryptocurrency up until Crypto Family and Ultron/Mavie Global (early to mid-2022).
Katic’s career in cryptocurrency fraud seems to have ultimately brought him to Dubai:
Crypto Family claims to be “based in Central Europe” in their marketing materials. This runs counter to the corporate address for “H A M Auditing & Business Consultancy” on the Crypto Family website, which is in Dubai.
The Crypto Family’s own cryptocurrency mining Ponzi scheme was introduced in June 2022.
|How does Crypto Family work?|
Investors receive 10% daily payments from Crypto Family for each mining package they purchase. Each mining hub package costs $21, and a maximum of 133 packages can be purchased by a single person.
The hub will start working for you after you purchase a package on the eighth day to create daily 10% incentives for the following three months.
The text above is taken from a promotional film for Crypto Family that was posted to YouTube on August 10, 2022.
Crypto Family rebranded as “Crypto Family 2.0” in November 2022.
The foundation of the reboot was Family Token and NFTs. And this is the potential that we are looking at right now.
For reference, the domain “cryptofamily.world” was the location of the Crypto Family’s initial Ponzi operation. “Cryptofamily.love” is the operating system for the reboot.
The fact that Katic and Crypto Family are based in Dubai is not a coincidence. The world’s MLM crime capital is Dubai.
Dubai’s BehindMLM rules are as follows:
- You are being conned if a Dubai resident approaches you about an MLM opportunity.
- An MLM business is fraudulent if it claims to be based in Dubai or to have connections there.
Continue reading for a detailed analysis if you want to discover how this especially relates to the Crypto Family.
Products of the Crypto Family
Crypto Family doesn’t offer any services or goods for retail sale.
Only the Crypto Family affiliate membership itself may be promoted by affiliates.
Compensation Plan for the Crypto Family
Affiliates of the Crypto Family buy $24 NFT positions.
This is done on the basis of a 90-day payout guaranteeing an ROI of 8.33% each day, or $2 per day.
The investment plan of the Crypto Family is managed by Family Token. However, Crypto Family divides profits among four “utility pools” rather than only paying out rewards and letting affiliates cash out:
-Pool 1 (25% of daily ROI) – withdraws automatically twice a month
-Pool 2 (25% of daily ROI) – must be given away to new recruits as a marketing tool (1% of given away tokens recycled into Pool 1)
-Pool 3 (25% of daily ROI) – forced staking of FT tokens for a year at a 4% annual ROI rate
-Pool 4 (25% of daily ROI) – can only be used to buy more NFT investment positions (forced reinvestment)
Additional NFT investment positions available through Pool 4 are:
-Validator NFT – $10 investment position that pays “up to $20 a day”
-Mining NFT – $2000 position that pays $10 a day (appears to be a continuation of Crypto Family’s first failed Ponzi)
-Luxury Car NFT – no information provided
-Real Estate NFT – no information provided
These additional NFT positions generate returns that are distributed to Pool 1.
The focus of Crypto Family’s MLM division is “points” gathering.
|Win exclusive prizes, FT, cars, and even residences by earning P (points)!|
Affiliates of the Crypto Family can collect points in one of three ways:
-Earn two points by bringing in a Crypto Family affiliate investor.
-Direct or indirect recruitment of a Crypto Family affiliate investor into your downline earns you 1 point.
-Persuade a company to accept FT tokens and earn 100–1000 points.
The exact process for converting points into “special prizes, FT, cars, and even apartments” is not stated.
Joining Crypto Family
$10 a year gets you a Crypto Family affiliate membership.
The attached income opportunity requires a minimum commitment of $24 to be fully participated in.
A $12 fee is assessed every 90 days, and in order to keep earning, reinvestment is necessary.
Summary of the Crypto Family
A straightforward MLM crypto Ponzi scheme is Crypto Family.
Affiliates make investments in $24 NFT positions that will eventually pay them $180 over a 90-day period.
The problem is that FT token is how Crypto Family conducts its Ponzi scam.
The BEP-20 token FT is. These can be set up quickly and for little to no money.
As part of their Ponzi scam, Crypto Family produces FT on demand and distributes it to affiliates.
How’s it going, then?
Crypto Family manipulates the distribution of returns in order to delay the ultimate collapse (see “Crypto Family’s Compensation Plan” above for more information).
Additionally, Crypto Family punishes affiliates that withdraw money:
-3% is the base withdrawal cost.
-Withdrawal charges rise 6.1% is more than 9.99% of invested money that is taken out.
-If more than 9.99% of invested money is removed in 24 hours, the withdrawal cost rises to 30%.
But math is math, and eventually, Crypto Family withdrawal amounts will be greater than invested funds.
As with all MLM Ponzi scams, fresh investment will cease as soon as affiliate recruiting does.
As a result, Crypto Family will eventually collapse from a lack of ROI income.
Get Your Money Back Suspicious
The arithmetic underlying MLM Ponzi schemes makes it inevitable that most investors will lose money.
Currently, Crypto Family is being advertised in Spain (53%), Costa Rica (19%, Italy (17%), Estonia (5%), and Croatia (3%), according to SimilarWeb’s study of website traffic.
The connections between the Crypto Family and Spain might go beyond just picking up new victims:
As mentioned previously, Spain is where the official Crypto Family Facebook page is run. It’s unclear if this connects Nebojsa Katic to Spain as well as Dubai.