Michael Faust’s “secret” Challenge Lantern Ponzi scheme has collapsed.

Withdrawals have been disabled as a result of “important losses”.

In a backoffice replace dated February fifth, the “Challenge Lantern Group” wrote;

Now we have just lately skilled a season of maximum volatility within the monetary and cryptocurrency markets.

Sadly the latest aggressive fast downwards actions within the crypto market have seen Challenge Lantern maintain some important losses, and resulted in a downward adjustment to the general worth of the buying and selling portion of the portfolio holdings.

As a result of loss … the precise selection to guard contributors is to formally droop … curiosity funds, fee funds (and) withdrawals … till such time because the … monetary losses might be recovered.

Accordingly … that is your official discover that the above features are hereby instantly suspended for 3 months, throughout which period an in depth evaluation shall be carried out, and the very best path ahead shall be decided and introduced.

The “Challenge Lantern Group” is believed to be Faust himself. Faust ran Challenge Lantern with the help of Chris Thomson and Azli Noor, however each look like comparative nobodies.

BehindMLM reviewed Challenge Lantern in April 2021. We discovered a bitcoin Ponzi scheme pitching a 6.5% month-to-month return.

Being a easy Ponzi scheme run by a serial Ponzi scammer, the precise cause Challenge Lantern collapsed is as a result of site visitors to its web site is useless.

No new funding = nothing to steal.

For his half, Faust appears to have moved on.

Faust rang in 2022 by saying he was “letting go of individuals” and “going to cease having troublesome conversations”.

“The place’s my cash?” is actually a troublesome dialog for a Ponzi scammer. Ignoring individuals who see you stealing their cash as an issue is a bit tough although.

Challenge Lantern’s collapse follows Faust spending an undisclosed quantity on “hospital stays and surgical procedure” all through This autumn 2021.

The variety of Challenge Lantern victims and complete investor losses are unknown.