The Federal Trade Commission (FTC) has filed a federal complaint against IYOVIA, previously known as IM Academy, alleging that the financial training platform operated as a multi-level marketing scheme. According to the complaint, the company has reportedly scammed consumers, particularly young individuals, out of over $1.2 billion since 2018.
IYOVIA marketed itself as a platform offering education on trading in various financial markets, including foreign exchange and cryptocurrency. The FTC's complaint asserts that while the company promoted the potential for wealth and financial freedom through its courses, many participants ended up losing significant amounts of money. The complaint indicates that the financial courses, which cost between hundreds of dollars monthly, did not yield the promised returns, with around 90% of those who enrolled abandoning the service within six months.
The complaint also highlights that many instructors lacked formal financial qualifications, often relying on informal sources for their training. The FTC alleges that the company’s practices constituted a multi-level marketing scheme, where the majority of participants earned little to no money. Records indicated that approximately 80% of the sales force made less than $500 annually.
The marketing strategies of IYOVIA were reportedly targeted towards young consumers, particularly within minority communities. Past warnings from various international regulatory bodies about the company's practices have also been cited. The complaint claims that the founders of IYOVIA received substantial financial benefits from the business despite the ongoing losses reported by customers.
As the situation develops, the FTC has refrained from further comments due to the active litigation, while the Nevada Attorney General's office has not yet provided a response.