Consistent with federal prosecutors, Mindset 24 Global LLC was a pyramid scheme with a million-dollar cryptocurrency twist.
In line with a recent official report by the SEC [Securities and Exchange Commission], it charged Kentuckian John Brian McLane, Jr. and Floridian Paul Anthony Nash with defrauding victims of their private development MLM firm, Mindset 24.
The prosecutors added that McLane and Nash sold Mindset 24’s to 735 investors on a promise of 70% returns powered by self-help kit sales, taking in over $1 Mln – mostly in Bitcoin [BTC] – within their 11-month run.
Mindset 24 helped victims setup their bitcoin wallets within the investor onboarding process, prosecutors alleged. Mindset 24’s official website listed “bitcoin as currency” together of its selling points.
The illicit Ponzi scheme highlights how bitcoin’s buzzword appeal and permissionless backbone are often co-opted by scammers. With no central authority to reverse transactions bitcoin remains a compelling choice, even if a transparent blockchain makes value movements easy to trace.
Around 5% of Mindset 24’s million allegedly lined McLane and Nash’s pockets. About 2% allegedly flowed to early backers while 69% was allegedly paid out at commissions. Within the end, though, 92% of investors allegedly lost all of their funds – on the average $1,168 USD.
SEC prosecutors revealed that the pair either knew they were running a “classic Ponzi scheme” or were reckless in not knowing it.
They charged the pair with unregistered securities sales and multiple counts of securities fraud in the United States District Court for the Eastern District of Kentucky.