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Enigma Network is an MLM company that specializes in bitcoin and forex trading.

Dave Wiltz, the company’s founder is said to be in charge.

Who exactly is Dave Wiltz? I have no idea. Outside of Enigma Network’s marketing, he does not appear to have a digital imprint.

But it doesn’t matter because…

J. Joshua Beistle and Doug Wellens are the people behind Enigma Network.

BehindMLM last encountered Beistle and Wellens in 2020, when they were co-founders of Essential Access Network.

Essential Access Network sold telemedicine subscription services. The firm’s website is still running, although Alexa reports that traffic to it is “n/a.”

In practice, Essential Access Network is no longer an MLM organization.

In terms of Beistle’s and Wellens’ MLM backgrounds:

J. Joshua Beistle made his first appearance on BehindMLM in 2013 as the President of the JubiRev Ponzi scheme.

JubiRev, which was essentially a reload of the famed Zeek Rewards Ponzi scheme, failed a few months after its introduction.

BrandOnline365, a short-lived pyramid scam, was Beistle’s return in mid-2014.

Infinite Leverage co-founder Doug Wellens originally appeared on BehindMLM in 2014.

Infinity Leverage was a pyramid scheme with a marketing platform attached.

Infinite Leverage was relaunched as Traffic Authority in 2015. In 2018, Traffic Authority was relaunched as Finish Line Network.

I’d also want to mention Richard Anzalone, Enigma Network’s Vice President of Sales.

Anzalone was indicted on criminal allegations linked to Infinity2Global in 2017.

Infinity2Global, run by Rick Maike, was a 25 million dollar pyramid fraud.

Anzalone earned $800,000 as one of the top earners at Infinity2Global. He is charged with mail fraud and money laundering on multiple counts.

Anzalone could face decades in prison if he is convicted.

Anzalone and his co-defendants will stand trial in July 2022.

I’d also be remiss if I didn’t mention Enigma Network’s self-proclaimed “legal team”:

In 2017, Wellman and Warrens’ biggest blunder was rubber-stamping iPro Network.

In 2019, the SEC filed a lawsuit against iPro Network, alleging it was a 26 million dollar pyramid fraud.

In 2018, we were similarly unimpressed with Warren’s legal interpretation of Crypto World Evolution.

Enigma Network’s corporate address is listed on their website in Las Vegas, Nevada.

Alexa currently ranks the Philippines (34 %) and the United States as the primary traffic sources to Enigma Network’s website (19 % ).

Stay tuned for a comprehensive assessment of Enigma Network’s MLM opportunity.

Products from Enigma Network

Enigma Network sells the standard MLM crypto fluff for $60 per month.

As previously stated, Enigma Network affiliates invest cash through Enigma Network’s trading bot.

Passive gains are then allegedly obtained through FX and cryptocurrency trading.

There is no information available on Enigma Network’s trading bots.

It is necessary to pay an additional fee to access Enigma Network’s trading bot.

  • $99 per month for four weeks of access to the forex or crypto bots; 
  • $999 per year for access to the forex or crypto bots; 
  • $2499 per year for access to both the forex and crypto bots.

The Compensation Plan of Enigma Network

Enigma Network’s MLM model is based on retail and affiliate subscription fee payments.

Subscription costs cover the teaching packs as well as the passive returns trading bot (details in “products” above).

Commissions on Education Packs

Enigma Network distributes education pack commissions based on eleven different ranking criteria:

  • Customer – sell and maintain three subscriptions and your monthly subscription price of $60 will be waived;
  • Tutor 250 – maintain 3 individually sold subscriptions while generating a total downline sales of 10 subscriptions (divided 4/4/2);
  • Tutor 500 – retain three personally sold subscriptions while generating a total of 25 downline sales (divided 10/10/5);
  • Tutor 1000 – sustain 3 individually sold subscriptions while generating a total downline sales of 75 subscribers (30/30/15);
  • Tutor 2000 – retain three personally sold subscriptions while generating a total of 250 downline sales (divided 100/100/50);
  • Coach 5000 – sell and keep 6 subscriptions while generating a total downline sales of 500 subscriptions (divided 400/400/200);
  • Maintain 6 individually sold subscriptions and create total downline sales of 1000 subscribers (divided 400/400/200);
  • Maintain 6 individually sold subscriptions and produce total downline sales of 2500 subscribers (divided 1000/1000/500);
  • Adviser 50,000 – sell and retain 9 subscriptions, resulting in total downline sales of 5000 subscriptions (divided 2000/2000/1000);
  • Adviser 100,000 – keep 9 personally sold subscriptions and produce total downline sales of 10,000 subscribers (split 4000/4000/2000);
  • Mentor 250,000 people by selling and maintaining 12 memberships and generating total downline sales of 40,000 subscriptions (divided 16,000/16,000/8000).

The “split” refers to the percentages of downline leg subscription sales. The figures given are the minimums that must be sold across three downline legs.

It is important to note that retail customer subscription revenues do not produce downline legs.

This implies that beginning with Tutor 250, each Enigma Network affiliate must acquire and retain at least three personally recruited affiliates with active education pack subscriptions.

The following are the corresponding education pack commission payouts based on rank:

  • Tutor 250s make $62.50 per week.
  • Tutor 500s make $125 per week.
  • Tutor 1000s make $250 each week.
  • Tutor 2000s make $500 per week.
  • Coach 5000s make $1250 per week.
  • Coach 10,000s make $2500 per week.
  • Coach 20,000s make $5000 each week.
  • 50,000s make $12,500 per week as advisers.
  • $100,000 advisers earn $25,000 per week.
  • 250,000 mentors earn $62,500 every week.

Affiliate Ranks for Trading Bot

Trading bot commissions on Enigma Network are linked to the second set of affiliate ranks:

  • Affiliate – become an Enigma Network affiliate Builder – earn 20,000 GV;
  • Pro Builder – earn 50,000 GV;
  • Manager – earn 100,000 GV;
  • Senior Manager – earn 200,000 GV;
  • Regional Manager – earn 350,000 GV;
  • Director – earn 500,000 GV;
  • Senior Director – 750,000 GV;
  • Regional Director – 1,500,000 GV;
  • Influencer – 2,500,000 GV;
  • Senior Influencer – produce 5,000,000 GV;
  • Global Influencer – produce 10,000,000 GV.

The compensation scheme for Enigma Network does not specify whether the GV amounts listed above are accumulated or monthly needs.

Residual Commissions on Trading Bots

Residual commissions for trading bots are paid via a one-level compensation structure.

Enigma Network has a limit of thirteen paying uni-level team levels.

Trading bot residual commissions are calculated as a proportion of trading bot subscription volume and are calculated as follows:

  • Affiliates get a 25% commission on level 1 (personally recruited affiliates) and a 5% commission on level 2.
  • Builders earn 25% on level one, 5% on level two, and 2% on level three.
  • Pro Builders earn 25% on level one, 5% on level two, and 2% on levels three and four.
  • Managers earn 25% on level one, 5% on level two, and 2% on levels three through five.
  • Senior Managers earn 25% on level one, 5% on level two, and 2% on levels three through six.
  • Regional Managers earn 25% on level one, 5% on level two, and 2% on levels three through seven.
  • Directors earn 25% on level one, 5% on level two, and 2% on levels three through eight.
  • Senior Directors earn 25% on level one, 5% on level two, and 2% on levels three through nine.
  • Regional Directors earn 25% on level one, 5% on level two, and 2% on levels three through ten.
  • Influencers earn 25% on level one, 5% on level two, and 2% on levels three through eleven.
  • Senior Influencers earn 25% on level one, 5% on level two, 2% on levels three through eleven, and 1% on level twelve.
  • Global Influencers earn 25% on level one, 5% on level two, 2% on levels three through eleven, and 1% on levels twelve and thirteen.

Trading Bot Bonus Code

Enigma Network offers a coded bonus of 20% on all trading bot subscription volume.

  • Builders receive a 2% Coded Bonus rate.
  • Pro Builders receive a 4% Coded Bonus rate.
  • Managers are eligible for a 6% Coded Bonus.
  • Senior Managers are eligible for an 8% Coded Bonus.
  • Regional Managers are eligible for a 10% Coded Bonus.
  • Directors are eligible for a 12% Coded Bonus.
  • Senior Directors are eligible for a 14 percent Coded Bonus.
  • Regional Directors are eligible for a Coded Bonus of 16%.

Higher ranking affiliates can thus receive the difference in their Coded Bonus rate with lower-ranked affiliates in their downline using Coded Bonuses.

Check Match Bonus for Trading Bot

Enigma Network offers a Check Match Bonus on uni-level team affiliate revenue.

  • Affiliates receive a 10% match on level 1. (personally recruited affiliates)
  • Builders receive a 10% match on levels 1 and 2.
  • Pro Builders receive a 10% match on levels 1 and 2 and a 5% match on level 3.
  • Managers receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on level 5.
  • Senior Managers receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on levels 5 and 6.
  • Regional Managers receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on levels 5 to 7.
  • Directors receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on levels 5 through 9.
  • Senior Directors receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on levels 5 to 11.
  • Regional Directors and above receive a 10% match on levels 1 and 2, a 5% match on levels 3 and 4, and a 2% match on levels 5 through 12.

The compensation documentation for Enigma Network does not explain whether the check match is paid on only residual trading bot commissions or all commissions.

Pools of Bonus Money

Enigma Network allocates 2% of total firm subscription volume to three rank-specific Bonus Pools.

Influencers are allotted an equal portion of a 0.5 percent Bonus Pool.

Senior Influencers share equally in a 0.5 percent Bonus Pool.

Global Influencers receive an equal portion of a 1% Bonus Pool.

Enigma Network Membership

The monthly fee for Enigma Network affiliate membership is $15.

According to Enigma Network’s compensation model, the $60 education package is required (“provides access”) for affiliates.

It looks to be a requirement for trading bot subscription access as well.

Despite the fact that all values in Enigma Network’s compensation plan are in USD, the company only accepts bitcoin.

Conclusion

Enigma Network’s MLM opportunity is divided into two parts: an education package pyramid scheme and a trading bot securities scam.

Retail buyers can purchase the education bundles. Builders’ need for three downline legs, on the other hand, translates into recruitment over retail.

Because there are no retail qualifiers, retail education package membership will be basically non-existent.

This is unsurprising given that the education package subscriptions are only a stepping stone to the far more expensive trading bot subscriptions.

Enigma Network provides security through passive return in this case.

The Howey Test is used by US authorities to determine the existence of an investment contract.

Enigma Network runs the bot, and the revenues are “earned through the labor of others.”

Enigma Network, J. Joshua Beistle, and Doug Wellens were not registered with the SEC at the time of publication.

Forex trading also necessitates Enigma Network being registered with the CFTC, which it is not.

Securities fraud occurs when a company offers securities to US residents without first registering with the SEC. It is also prohibited to operate a passive return forex scam without first registering with the CFTC.

Enigma Network is essentially the “lulz can’t touch our money” paradigm.

This trading bot concept works until it doesn’t, at which point accounts are closed or the owners deplete the funds via faked trades.

It should be noted that regulatory registration necessitates the filing of audited financial reports on a regular basis. This is done to ensure that trading companies are doing what they say they are doing.

In terms of Enigma Network’s pyramid side, math assures that the majority of participants in a pyramid scheme lose money.

The trading bot will continue to function until it stops, leaving the bulk of affiliates out of pocket once subscription fees are deducted.

These two elements should not be overlooked. Nonetheless, Enigma Network’s most immediate regulatory worry is securities fraud.

One only needs to look at the people involved and their previous schemes to see how MLM organizations commit securities fraud.

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