Is Recyclix a Scam? A Cash Recycler Ponzi Scheme!

Recyclix is a MLM or multi-level marketing company that revolves around a rev-share income opportunity. 

The business provides us with an address of an accounting firm in the UK, suggesting that the company only exists in name. Their sales and support offices are located out of Poland, which suggests that the owners might be residing here. There’s also a possibility that they’re from Russia because Alexa accounts 32% of their traffic from Ukraine.

Recyclix Product Line

Recyclix offers no retail products or services. They only offer access to their income opportunity. 

Recyclix has no retailable products or services, with affiliates only able to market Recyclix affiliate membership itself.

Does The Product Work?

Recyclix claims to generate revenue through recycling, which has them soliciting investments on the promise of more than 100% ROI.

And for our frequent readers here, they know that in order for you to carry out investments, you need to be registered with regulatory agencies. This was something that Recyclix hasn’t done. 

Recyclix fails a two-part Ponzi logic test. 

First, if the company was successful in generating ROI through recycling, why do they need external investments? 

Why even share this opportunity with others? The company could simply cycle through the ROI’s they generate and create income exponentially. 

The simple answer here is that passive income is nothing more than a ruse to get you to fork over your hard-earned cash. The funds invested into the program are cycled up the tier, so the older members will get paid first. As long as you’re at the bottom of the tier, you’re not going to be making any real money. 

The only proof of income that we see on their income opportunity is through new member investment, which is done through recruitment. Once the recruitment stops, money stops coming in too.

Recyclix only offers one way to make money and that’s through recruitment. 

You’ll see that on their compensation plan. 

How To Get Started with Recyclix?

You need to invest a minimum of  €1 EUR to take part in the income opportunity. There is no mention of the maximum investment. 

Recyclix Compensation Plan

Recyclix has you investing in different tiers, or what they call “plans”. Each plan is capped at how much shares you’re getting:

• Forklift – shares cost €1 EUR, capped at 200 shares
• Sorting – shares cost €10 EUR, capped at 250 shares
• Shredder – shares cost €25 EUR, capped at 250 shares
• Washer – shares cost €50 EUR, capped at 250 shares
• Granulator – shares cost €100 EUR, capped at 500 shares

You earn shares starting at 25% (although this is not clarified as to where this 25% is taken out of). Members also get to increase this percentage when they invest more. 

ROIs are paid out in cycles, with Recyclix cycling through pools between €13,10232 EUR.

Referral Commissions

Recyclix pays out referral commissions via unilevel compensation structure. This structure puts you at the top of your team. Your direct recruits, or your personally recruited members, are placed under you and marked as your level 1 members. 

Their recruits will be placed under them, and labeled as your level 2 members. And it will go on infinitely in theory. 

Recyclix caps out at four levels:

• level 1 (personally recruited members) – 10%
• level 2 – 3%
• level 3 – 2%
• level 4 – 1%

#1 Exited and Collapsed

Recyclix collapsed in May 2021, citing a huge catastrophe to be the reason why their program is no longer working. 

One of their major recycling facilities was caught in a forest fire in Poland. In order to continue recycling, revenue payments and further manufacturing, Recyclix was forced to adhere to its recovery plans. 

But in reality, this was just a way for them to exit the program and so people can no longer get their money out. 

#2 People Arrested For Money Laundering

Two people were tied to the money laundering scheme put up by Recyclix, and were arrested and sent to prison. 

Sergejs Vasiljevs, one of the perpetrators, cycled about 1.14 million EUR to his father. At that time, his father was residing in Finland and Sergejs himself resided in UK. 

The transfers were made into a company account under Vasiljev’s control. A trial found out that the money being laundered into this account were funds from Recyclix. 

Recyclix investors lost a total of about 39 million euros. Once Vasiljev received the money, their accountant, Marina Putskova, transferred the money into the son’s account in Latvia and other foreign bank accounts. She was fined 9000 Eur for her involvement in the scam. Not too long after, Italy’s CONSOB banned Recyclix from the country. 

We don’t know if Polish authorities ever carried out legal actions against Recyclix.

#3 Ponzi Scheme!

Recyclix is a Ponzi scheme. It was based on recruiting people, and committed securities fraud at the bare minimum. People go to jail for doing one of these. If you land the double whammy and get sued for both crimes, you go to jail for a long time.

There’s nothing to like about Recyclix. 

Recyclix is a Ponzi scheme, no more no less. The income opportunity hides behind investing in a recycling company, but they fail the Ponzi logic test outright. 

Recruitment is the name of the game here, and you won’t make any money if you don’t get people into the business. 

You’re also committing securities fraud because Recyclix is not authorized to carry out investment activities on behalf of their clients. 

Two people have gone to jail for their involvement in the scam.

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

• You don't have to recruit anyone to make money
• You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
• It's Free to get started

In fact, with affiliate marketing...