Passivo Scam Allegations Fact-checked (2024)
After gaining an understanding of several different investment plans, I was fortunate enough to be able to put this knowledge to use and take part in a couple of these programs. This allowed me to investigate businesses and organizations and evaluate their suitability as possible investments. Out of all the dubious and fraudulent investment opportunities, I could only identify Passivo, a Ponzi scheme, as one. Today, I want to delve deeper into the specifics of this system’s questionable elements.
Are you aware of Passivo?
Previously called Passive Hub, Passivo is a bitcoin Multi-Level Marketing (MLM) company.
Passivo is reported to operate out of three main website domains, which are as follows:
- The most recent update to the private registration data for passivo.com occurred on February 2nd, 2023.
- On July 7, 2023, the domain name passivohub.com—which has been registered privately—will become publicly accessible.
- The last update to passivo.io was made on July 4th, 2023, and as of right now, it only allows private registrations.
By whom was Passivo founded?
Passivo’s CEO, Jan Lubberding, has a limited amount of information available about his prior MLM work, which could be a red flag. It’s well known that Passivo is a pyramid scheme.
The fact that Jan Lubberding appears to be a German man involved in the bitcoin industry in Dubai is a serious red flag. Rather than announcing on its website that it conducts business in Dubai, Passivo provides information about a shell company named Passivo Ltd. This company is allegedly headquartered in the Seychelles, a well-known tax haven with no current laws on multilevel marketing stocks.
One potential red flag for Jan Lubberding could be the absence of a transparent multi-level marketing (MLM) background. In the multi-level marketing (MLM) industry, it is customary to place a great deal of emphasis on the credentials and achievements of important individuals, especially the CEO, when evaluating a company’s legitimacy.
To find out more about Jan Lubberding, go here:
Regarding Lubberding’s multi-level marketing background, the dearth of easily accessible material raises questions about the transparency and validity of the organization.
The fact that Jan Lubberding is connected to Dubai, a place well-known for serving as a center for MLM and cryptocurrency fraud, is another factor that gives cause for concern. If Lubberding is perceived as a “German crypto bro” hiding out in Dubai, this association may raise questions about the company’s intentions and moral behavior.
An important red flag is a registration in the tax-free Seychelles, which has lax laws governing MLM securities.
By using shell businesses, this approach often suggests a lack of transparency and maybe an attempt to evade regulatory scrutiny. It may also make it difficult to ascertain the true ownership and activities of the firm.
BehindMLM claims that Dubai is well-known for being the global center of multi-level marketing (MLM) criminality. The potential risks associated with any multilevel marketing company having its headquarters in the area or having ties to it are further highlighted by this reputation.
Due to the city’s lax enforcement of securities fraud laws and the pervasiveness of scams, there is uncertainty about multi-level marketing opportunities that originate in or are associated with Dubai.
The lack of an easily verifiable multi-level marketing record for Lubberding, the purported connection to the cryptocurrency world, the utilization of shell company data, and the choice of Seychelles as a registered location all cast doubt on Passivo’s legitimacy and honesty.
Furthermore, the cautionary note that BehindMLM gave about MLM possibilities in Dubai emphasizes the need for exercising caution and conducting due diligence when dealing with companies like Passivo. Before making any potential investments in or getting associated with multi-level marketing companies, these warning flags should serve as a reminder to approach extremely cautiously and undertake thorough research.
Have you learned anything from this conversation so far?
How does one operate a Passivo?
Putting money on it is not a safe bet because it is an unapproved and uncontrolled trading platform. However, the following points can be used to deconstruct its operation:
- Items Made By Passivo
- Passivo Compensation Plan
- Links Ranks
- Commissions for referrals
- Commissions that Recur
- Products of Passivo
Rank Achievement Bonus
There aren’t any goods or services that Passivo sells directly to customers. The possibility to just advertise the Passivo affiliate membership is available to affiliates.
Passivo Compensation Plan
To earn a weekly passive return on investment, passive affiliates must deposit $100 in USD or cryptocurrency. The following are the ROI levels:
Invest $100–$49,999 to get a weekly return of 0.8% for affiliates. Deposit $50,000 or more: Associates will receive a 1% monthly return on their investment of $50,000 or more.
It is possible to invest in both US dollars and cryptocurrencies; however, withdrawals can only be made in Tether (USDT), where one US dollar is equivalent to one USDT.
Passivo provides MLM commissions to affiliates who bring in new investors in addition to passive return on investment. A lot of MLM programs use commissions based on recruitment.
Affiliate Positions
There are twelve affiliate ranks under the Passivo compensation plan. In addition to their credentials, they are:
| Rank | Investment Required (to Convince Others) |
| 1 | $2000 |
| 2 | $5000 |
| 3 | $25000 |
| 4 | $50000 |
| 5 | $125,000 |
| 6 | $250,000 |
| 7 | $1,250,000 |
| 8 | $2,250,000 |
| 9 | $5,000,000 |
| 10 | $12,500,000 |
| 11 | $25,000,000 |
Of the required downline investment volume, a recruitment leg can only account for 40%.
Commissions for Referrals
Referral fees are paid by Passivo on money invested by affiliates who are personally recruited:
| Number of Affiliates Recruited | Weekly Commission Rate on Their Invested Funds |
| 1 to 3 | 0.2% |
| 4 to 7 | 0.4% |
| 8 to 9 | 0.6% |
| 10 or more | 0.8% |
Residual Orders
Passivo pays out a residual commission based on the total amount of money that downline members invest.
| Number of Affiliates Recruited | Weekly Commission Rate on Total Downline Investment |
| 2 to 4 | 0.04% |
| 5 to 9 | 0.08% |
| 10 to 19 | 0.12% |
| 20 or more | 0.16% |
Bonus Pool
Eight incentive pools get an undisclosed part of the company’s funding from Passivo. Affiliates obtain a portion of the pools by investing and persuading others to spend money:
| Pool | Investment Required | Recruitment Requirement | Total Affiliates Recruited |
| 1. | $3,000 | – | – |
| – | Invest $1,000 and | 1 or more | |
| convince others to | |||
| invest $1,000 | |||
| 2. | $15,000 | – | – |
| – | Invest $5,000 and | 3 or more | |
| convince others to | |||
| invest $5,000 | |||
| 3. | $30,000 | – | – |
| – | Invest $7,500 and | 5 or more | |
| convince others to | |||
| invest $15,000 | |||
| 4. | $60,000 | – | – |
| – | Invest $10,000 and | 8 or more | |
| convince others to | |||
| invest $35,000 | |||
| 5. | $170,000 | – | – |
| – | Invest $20,000 and | 10 or more | |
| convince others to | |||
| invest $95,000 | |||
| 6. | $350,000 | – | – |
| – | Invest $50,000 and | 13 or more | |
| convince others to | |||
| invest $180,000 | |||
| 7. | $900,000 | – | – |
| – | Invest $100,000 and | 15 or more | |
| convince others to | |||
| invest $500,000 | |||
| 8. | $1,800,000 | – | – |
| – | Invest $250,000 and | 20 or more | |
| convince others to | |||
| invest $1,000,000 |
International Leader Pool
Passivo invests 0.01% of the entire cash the company has available for investment to be a part of the Global Leader Pool.
A Passivo associate must earn at least $3000 in residual commissions each day to be eligible for a piece of the Global Leader Pool.
The frequency of payouts from the Global Leader Pool to winners is not stated in the marketing materials supplied by Passivo.
Achievement Bonus for Rank
Affiliates that fulfill the prerequisites to get Rank 2 or higher are qualified to obtain one-time Rank Achievement Bonuses, which include the following:
| Rank | Qualification Reward |
| 2 | $50 |
| 3 | $250 |
| 4 | $500 |
| 5 | $1,250 |
| 6 | $2,500 |
| 7 | $5,000 |
| 8 | $12,500 |
| 9 | $25,000 |
| 10 | $50,000 |
| 11 | $125,000 |
| 12 | $250,000 |
What is the process for becoming a Passivo member?
What is the process to become a member of Passivo?
Membership in the Passivo affiliate program is free of charge. A minimum of one hundred dollars must be committed to fully participate in the earning potential that has been linked. Investments made through Passivo can also be made in the USD and a variety of cryptocurrencies.
The Bottom Line
According to Passivo, it offers liquidity and trading opportunities to generate income from other sources. However, no concrete evidence has been provided to support these claims. Its operations are not well documented, raising questions about its funding source.
Passivo’s promise of passive weekly returns is deemed to be a securities offering under the acknowledged legal standard known as the Howey Test. But Passivo hasn’t demonstrated that it has registered the securities it is selling with any financial regulator in any recognized country. Concerns about potential securities fraud are raised by this regulatory noncompliance.
The fact that Jan Lubberding and Ahmed, among others, are associated with the company, further damages its reputation. The involvement of these officials in other potentially questionable enterprises raises even more concerns about the company’s integrity.
It seems that Passivo’s primary revenue source is new investments from colleagues. This financial model is characteristic of a Ponzi scam. These types of schemes employ funds from new investors to reimburse earlier investors for their investments. When recruitment stalls, the program comes to an end because it can no longer be maintained.
Since Ponzi schemes are mathematical, they are doomed to failure in the end. The drop in new investment will leave little money left over to compensate existing affiliates. This will most likely result in the participants losing their assets.
To sum up, there are serious concerns about Passivo’s legitimacy because of its lack of openness, potential for securities violations, questionable links, and reliance on fresh investments to make money.
Ponzi schemes are unsustainable by nature and often result in financial losses for the majority of participants when they eventually collapse. These warning indicators are consistent with these schemes. Caution and thorough due diligence are crucial before considering any kind of involvement with Passivo or similar activities.
By clicking the given link below, you can learn more about Passivo:
