The SEC has unmasked the scammer behind the My Micro Earnings Ponzi scheme.
In a lawsuit filed in opposition to him, the SEC alleges Ryan Ginster, of California, “raised over $3.6 million” from buyers.
Ginster (proper) is behind My Micro Earnings and Social Profimatic.
Each scams, which the SEC identifies as “just about an identical”, had been bitcoin Ponzi schemes.
Ginster contacted an unnamed firm promoting “HYIP software program” beneath the alias “Ryan Oakley”.
Ponzi scripts for each Social Profimatic and My Micro Earnings had been bought from the identical firm.
In an undated handwritten be aware to himself, Ginster states that the “proof of idea” for the “Microprofit” system would have a “program that checks complete deposits every day after which places collectively random report[sic] to indicate earnings generated[.]”
BehindMLM reviewed Social Profimatic in April 2018. Social Profimatic marketed an 8% day by day ROI and pyramid recruitment commissions.
Compounded for a yr, this got here to annual return of 1.5 trillion %.
Primarily based on feedback left on our evaluation, Social Profimatic lasted simply over a month.
My Micro Earnings was reviewed in July 2020. My Micro Earnings marketed a 0.13% hourly return and pyramid recruitment commissions.
Inside every week of publishing our evaluation, My Micro Revenue buyers started reporting non-payment.
BehindMLM’s analysis into Social Profimatic and My Micro Earnings syncs with what the SEC discovered by way of their very own investigation.
Ginster did enterprise beneath the names of each SP and MMP, neither of which existed as a separate entity.
Each allegedly ran on-line excessive yield funding packages (“HYIPs”) that promised buyers astronomical charges of return in a brief time frame.
In each schemes, Ginster misrepresented how investor funds could be used and the way simply these funds could possibly be withdrawn.
Regardless of working for round 35 days, Social Profimatic nonetheless took in $844,667 in bitcoin (valued on the time).
Funding was acquired from “over 9,000 separate BTC investor deposits … totaling 98.12 BTC”.
My Micro Earnings had an extended run and took in $2.8 million in bitcoin (once more valued on the time).
Funding was acquired from “at the very least 9,916 separate BTC investor deposits”.
Ginster ran Social Profimatic on the ruse “social stock” could be “offered to enterprise homeowners on demand”.
As an alternative,
Ginster transferred (invested) funds to and amongst at the very least 5 different digital asset wallets beneath his management, in addition to changing BTC to fiat forex to pay his private bills.
On data and perception, these transfers don’t point out that Ginster ever tried to generate returns on the BTC by way of social media advertising orders as promised.
My Micro Earnings’ ruse was virtually each MLM crypto Ponzi ruse cliche; “transaction processing charges, cloud internet hosting, cryptocurrency buying and selling and promoting arbitrage”.
I feel the one one Ginster missed was mining.
In any occasion, as with Social Profimatic, right here’s what really occurred;
As soon as MMP acquired buyers’ BTC, Ginster transferred the funds to and amongst at the very least 5 different digital asset wallets beneath his management, in addition to changing BTC to fiat forex to pay his private bills.
Between at the very least February 2018 by way of February 2021, Ginster … subsequently transformed parts of that BTC into greater than $1 million in U.S. forex.
Ginster spent the overwhelming majority of those U.S. {dollars} on private bills akin to tax funds, mortgage funds, a luxurious automobile, and nearly $200,000 in numerous bank card payments.
The SEC seeks an injunction and judgement pertaining to Ginster’s alleged violations of the Securities and Alternate Act.
Ginster can even must pay a civil penalty, and ‘disgorge all funds obtain from his unlawful conduct, along with prejudgment curiosity thereon’.
At time of publication the SEC’s case in opposition to Ginster has but to seem on Pacer. I’ll examine the docket once more tomorrow for an replace.
In parallel with the SEC’s civil proceedings, the DOJ has filed felony expenses in opposition to Ginster over the identical conduct.
Keep tuned for an article protecting Ginster’s felony case.
Replace nineteenth November 2021 – BehindMLM’s article protecting Ginster’s felony case is stay.
Replace twentieth November 2021 – Ginster’s SEC case is now on Pacer. I’ve checked the docket and there’s no important updates.
I’ve added the case to BehindMLM’s calendar so we’ll proceed to watch the docket.
Replace eighth March 2022 – On February twenty second the DOJ filed a movement requesting a keep of the SEC’s civil proceedings.
On March 1st the DOJ’s movement was granted.
The Courtroom directs the Clerk to take away the case from the Courts energetic caseload till additional utility by the events or order of this Courtroom.
The events shall file a joint standing report inside 120 days, and an additional report each 120 days thereafter.
I’ll proceed to watch the case docket however it seems we received’t get any substantial updates until Ginster’s felony case is over.