LEO proprietor and CEO Dan Andersson has introduced current fee balances are being held hostage, pending new funding from recruited associates.
Andersson’s announcement was made in a “Particular International Affiliate Assembly”, held yesterday.
Final we heard Andersson was below legal investigation in Pakistan. To that finish authorities had forbidden him from fleeing the nation.
In April the Pakistani SEC shut down a shell firm associated to LEO.
So far as we all know Andersson (proper) continues to be prohibited from leaving Pakistan, and the regulatory investigation into LEO continues.
What with LEO’s newest incarnation being an MLM crypto Ponzi scheme, naturally this has been horrible for enterprise.
Or as Andersson places it, LEO now finds itself in an “almighty money crunch”.
[22:51] Our stability sheet may be very, very wholesome. We have now property, now we have properties, now we have a stability sheet that’s robust as something.
We have now some properties which can be value form of 4 million kilos. We have now claims on others that uh… let me not speak about that, it’s too painful.
However now we have a stability sheet that’s very, very robust and really, very cool. That’s terrific.
However the enterprise runs on liquid money. And naturally when the liquid money dwindles, then you definately as a enterprise chief need to do one thing about that.
Fairly than come clear about his arrest and standing in Pakistan, Andersson dances across the elephant within the room.
The closest he will get to acknowledging LEO’s authorized issues, is stating the corporate has racked up “two million kilos of authorized charges on various things”.
LEO started as a private improvement pyramid scheme again in 2012. Like many MLM scams, the corporate pivoted into cryptocurrency in 2014.
This noticed the introduction of LEO Coin, which has operated as a Ponzi scheme by way of an inside alternate since launch.
On or round August 2015 LEO Coin was listed publicly. At launch LEO Coin hovered round 5 cents.
From 2017 nevertheless it’s been in steady decline, and now trades publicly at 2.2 cents.
Andersson refers to LEO’s sale of LEO Coin internally as a Digital Advertising Service (DMS).
Briefly LEO generates LEO Coin demand, solicits funding for the cash internally and pays commissions on affiliate investor recruitment.
That is your commonplace MLM crypto Ponzi mannequin.
Bother is, with Andersson caught and new funding plummeting, LEO has (supposedly) run out of cash to honor inside alternate withdrawals.
As a part of his Particular International Affiliate Assembly announcement, Andersson inadvertently reveals LEO has been paying inside alternate withdrawal requests with invested funds.
[24:32] The DMS product has price us dearly.
Once we launched it, it was a improbable alternative. The crypto markets have been stuffed with alternatives that we have been capable of capitalize on.
However then that market, these markets contracted and really, in a short time we bought to the stage the place we needed to sort of help the DMS payouts utilizing our digital forex reserves.
We after all already knew LEO was working as a Ponzi scheme (each MLM crypto inside alternate alternative is), however there you might have it from the horse’s mouth.
In response to LEO collapsing, Andersson introduced all current LEO affiliate fee liabilities have been suspended.
[32:11] The outdated liabilities, from issues that you simply earned six months in the past, 9 months in the past or final week, these commissions might be withdrawn towards the commissions that you simply earn.
The algorithm will let you know how a lot you possibly can withdraw. It means you possibly can withdraw 100% of your new commissions plus 10% of your outdated ones.
The balances are there, however associates will solely be capable to declare out of recent enterprise – i.e. the recruitment of recent LEO affiliate traders.
In an try and placate ripping off LEO associates, Andersson states he’s additionally requested LEO’s “senior executives to not take wage”.
In an try and encourage new funding, Andersson introduced a reverse matching bonus was scrapped. Stricter qualification standards for the common matching bonus can even be launched.
Defending the selections, Andersson acknowledged the bonuses have been “a little bit of bullshit” and that LEO “wants the money movement”.
[34:56] When you have no intention to help LEO by standing up and combating for LEO, then now we have to guarantee that we glance after the people who find themselves combating.
Trying ahead, except a bunch of recent gullible traders are discovered, LEO is over.
Not withstanding LEO’s and Andersson’s authorized standing in Pakistan, which Andersson has not addressed publicly.
By now not propping up inside alternate LEO Coin withdrawals, Andersson states he expects the worth to drop to the present 2.2 cent public worth.
To offer you an concept of how a lot that can intestine LEO’s MLM alternative, over the previous 24 hours lower than $4000 of LEO Coin was publicly traded.
LEO Coin is lifeless outdoors of LEO, and Andersson simply killed it internally too.
Can’t say I blame him although, math is math and LEO can’t proceed to pay out if there’s no new funding coming in.
Within the meantime LEO’s current traders are coming to phrases with their losses.
Andersson seems to have little sympathy, telling associates upset about having commissions stolen;
[46:55] Actually, if you wish to be a freeloader, if you wish to have one thing for nothing, you might be very welcome to depart.
You’re very welcome to be pissed off. You’re very welcome to say goodbye and go off and end up a rip-off that you would be able to run for six months.
One LEO affiliate investor who wrote in to us acknowledged;
As a LEO member I’m so confused and afraid about firm’s future.
Among the leaders are speaking about that he has to pay bribes in Pakistan to keep away from being arrested that’s why he’s spending firm’s cash and isn’t paying fee to us.
Different leaders are saying that he’s planning to run away with firm cash and goes to reset the corporate subsequent month throughout China cruise journey that is why he stopped fee funds.
We labored arduous to earn this fee and he’s spending it on himself.
Whether or not this “China cruise journey” performs out might be attention-grabbing to see.
On the time of publication LEO’s web site lists Dan Andersson, Mihir Magudia, Andy Hanson, Waqas Suhail and Wendy Li as audio system for the occasion.
Keep tuned…
Replace twenty fifth September 2021 – As on the time of this replace, Andersson’s “Particular International Affiliate Assembly announcement” video has been faraway from YouTube.
As such I’ve eliminated the beforehand accessible hyperlink to the video.