On August 13, 2025, Ash Mufareh, owner of OnPassive, settled fraud charges with the SEC for $32 million, as reported by behindmlm.com. The settlement includes $26.2 million in disgorgement, $1.2 million in prejudgment interest, and a $4 million civil penalty, reflecting funds misappropriated by Mufareh and his wife, Asmahan, per @BeautyBubble on X. An injunction permanently bars Mufareh from violating the Securities Exchange Act, defrauding consumers, or engaging in securities activities, with an eight-year ban from officer or director roles, per casemine.com. Asmahan’s unjust enrichment claim was dismissed.
Launched in 2018, OnPassive operated as an MLM pyramid scheme with securities elements, selling $25–$500 matrix positions via GoFounders, per jessesingh.org. Mufareh, a former TelexFree promoter, lured investors with promises of riches tied to delayed online services, defrauding them of $108 million, per the SEC’s August 2023 lawsuit. Claims grew outlandish, including alleged U.S. government ties in 2022 and threats of “criminal defamation” against critics, per behindmlm.com. Many victims were Indian residents, with U.S. and UK promoters like Richard Redfern targeting middle-aged investors, per @BeautyBubble.
The settlement stabilizes crypto markets by curbing OnPassive’s fraudulent activities, with Bitcoin steady at $119,098, per CoinMarketCap. The SEC may propose a victim restitution plan, pending court approval, to address losses, per behindmlm.com. OnPassive’s collapse highlights MLM risks, with Redfern still posting webinars, per YouTube data. Regulatory clarity under SEC Chair Paul Atkins, who declared most crypto non-securities, may ease DeFi tensions but doesn’t shield Mufareh’s violations, per wp.nyu.edu. Investors should monitor SEC updates on sec.gov for restitution details.
The $32 million settlement underscores SEC enforcement, with $108 million in alleged fraud signaling deeper victim impact, per jessesingh.org. Investors should avoid MLM schemes and track crypto regulations via @TheBlock__ on X. Diversifying into BTC ($119,000 support) or stablecoins like USDC mitigates risk, per TradingView. OnPassive’s fallout may spur stricter ICO oversight, per Coinlaw.io. With Atkins’ pro-innovation stance, DeFi growth could continue, but vigilance against fraud remains critical in 2025
