Crypto Family first popped up on BehindMLM’s radar last September. At the time Crypto Family were promoting the Ultron/Mavie Global Ponzi scheme.
A reader asked about Crypto Family, prompting me to look into a link they provided. That lead me to Dorde Petrovic, a member of Crypto Family.
Petrovic’s Crypto Family fraud journey began in July 2022. Petrovic runs the “Passive Income” FaceBook group (11 members), which he promotes Crypto Family’s various scams through.
Crypto Family is run by founder Nebojsa Katic (right).
Katic has roots in Croatia and began his MLM career with Organo Gold and the Lyoness Ponzi scheme.
Circa 2019 Katic was promoting Essens. His Crypto Family bio states Katic reinvented himself as a crypto bro in 2014.
As of November 2022, Crypto Family claims to have “around 56,000 members”.
From what I can tell, Katic was a nobody in crypto until Crypto Family and Ultron/Mavie Global (early to mid 2022).
Katic’s crypto fraud journey seems to have inevitably led him to Dubai:
In its marketing material, Crypto Family claims to be “based in Central Europe”. This contradicts Crypto Family’s website, which provides a corporate address for “H A M Auditing & Business Consultancy” in Dubai.
In June 2022 Crypto Family launched its own crypto mining Ponzi scheme.
What is Crypto Family?
Crypto Family is Mining hub that pays investors 10% daily for each mining package you buy. Each mining hub package cost $21 ….and you can buy any quantity you want up to maximum of 133 packages is allowed per person.
After buying a package, the hub will work for you from the 8th day after purchase to generate daily 10% rewards for the next 3 months.
The above is from a Crypto Family marketing video, uploaded to YouTube on August 10th, 2022.
In November 2022, Crypto Family relaunched as “Crypto Family 2.0”.
The reboot was built around NFTs and Family Token. And this is the opportunity we are reviewing today.
For reference, Crypto Family’s first Ponzi scheme ran from the domain “cryptofamily.world”. The reboot operates from “cryptofamily.love”.
Crypto Family and Katic being based out of Dubai is not a coincidence. Dubai is the MLM crime capital of the world.
BehindMLM’s guidelines for Dubai are:
- If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
- If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.
If you want to know how this specifically applies to Crypto Family, read on for a full review.
Crypto Family’s Products
Crypto Family has no retailable products or services.
Affiliates are only able to market Crypto Family affiliate membership itself.
Crypto Family’s Compensation Plan
Crypto Family affiliates invest in $24 NFT positions.
This is done on the promise of an 8.33% daily ROI (represented as $2 a day), paid out for 90 days.
Crypto Family’s investment scheme is run in Family Token. Rather than just pay out returns and allow affiliates to cash out however, Crypto Family splits returns into four “utility pools”:
- 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
Returns from these additional NFT positions are paid out to Pool 1.
The MLM side of Crypto Family revolves around collection of “points”.
Earn P (points) and win special prizes, FT, cars and even apartments!
Crypto Family affiliates earn points via three methods:
- recruit a Crypto Family affiliate investor = 2 points
- a Crypto Family affiliate investor is recruited into your downline (direct or indirect) = 1 point
- convince a business to accept FT tokens = 100 to 1000 points
How points are converted to “special prizes, FT, cars and even apartments” isn’t specified.
Joining Crypto Family
Crypto Family affiliate membership is $10 a year.
Full participation in the attached income opportunity requires a minimum $24 investment.
Every 90 days a $12 fee is charged, with reinvestment required to continue earning.
Crypto Family Conclusion
Crypto Family is a simple MLM crypto Ponzi scheme.
Affiliates invest in $24 NFT positions, which pay them an eventual $180 over 90 days.
The catch is Crypto Family runs its Ponzi scheme in FT token.
FT is a BEP-20 token. These can be set up in a few minutes at little to no cost.
Crypto Family generates FT on demand and dumps it on affiliates as part of their Ponzi scheme.
Here’s how that’s going:
To prolong the inevitable collapse, Crypto Family manipulates how returns are paid out (detailed in “Crypto Family’s Compensation Plan” above).
Crypto Family also penalizes affiliates for cashing out:
- base withdrawal fee is 3%
- withdrawal fee increases 6% is more than 9.99% of invested funds are withdrawn
- withdraw fee increases to 30% if more than 9.99% of invested funds are withdrawn over a 24 hour period
At the end of the day however math is math, and ultimately Crypto Family withdrawal amounts will exceed invested funds.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Crypto Family of ROI revenue, eventually prompting a collapse.
The math behind MLM Ponzi schemes guarantees that the majority of investors lose money.
Based on website traffic analysis by SimilarWeb, currently Crypto Family is being promoted in Spain (53%), Costa Rica (19%), Italy (17%), Estonia (5%) and Croatia (3%).
Crypto Family’s ties to Spain might extend beyond recruitment of new victims:
As above, Crypto Family’s official FaceBook page is managed from Spain. Whether this ties Nebojsa Katic to Spain in addition to Dubai is unclear.