iBuumerang, a discount travel MLM founded in 2019, has had withdrawals disabled for over a month following the termination of its payment processor, i-Payout, around April 18, 2025. Affiliates were urged to withdraw funds from i-Payout’s e-wallet by April 20, 2025, as the company transitioned to a new provider, but no new processor has been named, and withdrawals remain paused.
Payment Processor Transition Delays
- Initial Announcement: On April 18, iBuumerang cited a “payment system upgrade,” promising a swift switch to a new provider.
- VP’s Assurance: On April 19, VP Terrence Gray estimated a “week or two” for resumption, claiming funds left in i-Payout would transfer seamlessly.
- Latest Update: A May 13 update admitted delays, pausing withdrawals until at least June 20, missing the May 20 commission run
Regulatory and Financial Concerns
- Holton Buggs’ Legal Issues: CEO Holton Buggs faces a CFTC lawsuit for promoting The Traders Domain Ponzi, with an estimated $75.9 million stolen. He consented to an asset-freeze injunction in January 2025, raising questions about iBuumerang’s frozen assets.
- i-Payout’s Exit: i-Payout likely ceased services due to Buggs’ regulatory troubles, though unconfirmed.
- Processor Risks: iBuumerang’s high-risk status may force reliance on unregulated processors, increasing fund security concerns.
Company Background
iBuumerang, led by Buggs, added a forex trading scheme, Ellev8, which triggered regulatory warnings. Buggs has funneled affiliates into crypto Ponzis like Meta Bounty Hunters, collapsing in 2023.
Outlook
The prolonged processor transition, Buggs’ legal battles, and potential asset freezes suggest iBuumerang is stalling. Affiliates face risks to their funds with no clear resolution. Updates are expected around June 20, 2025.