Jonny Blockchain provides no information on its website about who owns or runs the company.
Jonny Blockchain’s website domain (“jonnyblockchain.com”) was first registered in 2019.
The private registration was last updated in February 2021, which I believe is when the current owner took possession of it.
In researching Jonny Blockchain I noticed a lot of promotion from Jeremy Rush.
Rush (right) is known to BehindMLM as the owner of the long-running but since collapsed Zukul Ponzi scheme.
Promoting a company isn’t enough to confirm ownership. So I poked around a bit more and discovered Zukul’s last incarnation, Zukul Trading, and Jonny Blockchain are hosted on the same server in the Netherlands.
This is obviously not a coincidence.
BehindMLM revisited Zukul Trading just last month. This is in fact how Jonny Blockchain was queued up for review, I just didn’t know Rush was running it at the time.
Rush began promoting Jonny Blockchain in early June 2021. The Jonny Blockchain smart-contract on June 14th.
In between Zukul Trading’s collapse and Jonny Blockchain’s June launch, Rush has been promoting various cryptocurrency Ponzi schemes.
Rush promotes and runs Ponzi schemes out of London in the UK.
Read on for a full review of Jonny Blockchain’s MLM opportunity.
Jonny Blockchain’s Products
Jonny Blockchain has no retailable products or services, with affiliates only able to market Jonny Blockchain affiliate membership itself.
Jonny Blockchain’s Compensation Plan
Jonny Blockchain affiliates invest 100 tron (TRX) or more on the promise of an advertised 125% ROI.
At the time of publication Jonny Blockchain is pitching an average 1.25% daily ROI.
Jonny Blockchain pays referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Jonny Blockchain caps payable unilevel team levels at four.
Referral commissions are paid out as an unspecified percentage of TRX invested across these four levels.
Joining Jonny Blockchain
Jonny Blockchain affiliate membership is free.
Full participation in the attached income opportunity requires a minimum 100 TRX investment.
Jeremy Rush represents Jonny Blockchain generates external revenue via shitcoin mining.
Specifically, Rush claims Jonny Blockchain mines “poo coins that nobody wants”.
We take those poo coins and we run them through our DiFi aggregator, and we swap them for tron.
And it is a percentage of that tron that is paid back into Jonny Blockchain.
In support of this, Rush provides footage of himself walking through what he claims is a crypto mining farm.
Needless to say for the purpose of due-diligence, this video is meaningless. It is not evidence of Jonny Blockchain using external revenue to pay returns.
What would constitute evidence is audited financial reports, which Jonny Blockchain is legally obligated to provide.
Naturally these reports aren’t provided, because Jonny Blockchain is nothing more than a Ponzi scheme.
This shouldn’t come as a surprise, given every incarnation of Rush’s Zukul scam was also a Ponzi scheme.
In an attempt to convince you a serial Ponzi scammer has turned a new leaf, on July 2nd Rush uploaded a video titled “Is Jonny Blockchain a ponzi scam“.
In this video Rush argues Jonny Blockchain isn’t a Ponzi scheme because:
- Jonny Blockchain pays returns through “profit sharing”; and
- Jonny Blockchain pays returns through “crypto mining & DiFi [sic]”.
Rush also claims Jonny Blockchain doesn’t need to register with financial regulators because
none of the payments paid to Jonny Blockchain by the members to use the JB products is invested.
“Profit sharing” is recycling affiliate funds to pay returns. If anything this confirms Jonny Blockchain is a Ponzi scheme.
I’ve addressed Rush’s claims regarding crypto mining (and by extension DiFi) above.
With respect to not having to register with financial regulators, any MLM companies offering passive returns is a securities offering.
All securities offerings must be registered with financial regulators in any country they operate in.
In the UK, this would be the FCA. Not withstanding the FCA is dysfunctionally useless as a financial regulator.
Even if one were to buy into Rush’s claims (which you absolutely shouldn’t), his claim that Jonny Blockchain funds aren’t invested is nonsense.
Rush’s pseudo-compliance has him claiming Jonny Blockchain funds are invested in mining equipment, which is in turn used to generate returns.
At the end of the day a smart-contract is a zero-sum equation. Funds go in, Rush and his friends who got in early steal most of it, whatever’s left trickles out.
Rush could have just as easily called Jonny Blockchain “Zukul Mining”.
As with all MLM Ponzi schemes, once affiliate recruitment runs dry so too will new investment.
This will starve Jonny Blockchain of ROI revenue, eventually prompting a collapse.
Jonny Blockchain does not offer any refunds as all transaction are carried in a cryptocurrency via a smart contract.
A cryptocurrency transaction cannot be reversed or refunded.
The math behind MLM Ponzi schemes guarantees that when they collapse, the majority of participants lose money.