Shame in disappointment as iBuumerang Withdrawals on Hold for Over a Month Amid Payment Processor Switch
MLM company iBuumerang has left its promoters unable to withdraw their commissions for more than a month, following the suspension of services from its payment processor, i-Payout.
In mid-April, the company issued a notice to its affiliates, urging them to withdraw available commission balances within 48 hours ahead of what it described as a “payment system upgrade.”
The message clarified that only funds in the company’s payout partner e-wallets needed to be withdrawn, while balances in iBuumerang’s internal back office would remain unaffected.
The payment partner in question, i-Payout, subsequently disabled iBuumerang’s merchant account around April 18th. Since then, withdrawals for iBuumerang’s promoters have remained inaccessible.
Founded in 2019 as a discount travel multi-level marketing (MLM) company, iBuumerang later diversified into forex trading through a program called Ellev8, which attracted warnings from regulators over concerns of fraudulent activity.
The company’s founder and CEO, Holton Buggs, has a controversial history involving cryptocurrency investment schemes. In October 2024, the U.S. Commodity Futures Trading Commission (CFTC) accused Buggs of acting as a top promoter in *The Traders Domain*, an alleged Ponzi scheme.
While it remains unconfirmed whether Buggs’ legal troubles contributed to i-Payout’s decision to sever ties, the timing of events suggests a possible connection.
iBuumerang Withdrawals on Hold: Assurances and Delays
In an April 19th corporate webinar, iBuumerang’s Vice President of Business Development, Terrence Gray, sought to address growing concerns.
When asked about the resumption of payments, Gray estimated the switch to a new platform would take “a week or two,” reassuring affiliates that any funds left in the old system would carry over to the new one.
That timeline quietly expired. It wasn’t until May 13th that affiliates received a further update.
The company acknowledged delays in the transition, stating, “As with any upgrade of this scale, it’s taking a bit longer than expected to finalize all the moving parts.” iBuumerang also confirmed that commission withdrawals would remain paused.
However, industry observers have questioned the length of the delay. In an era where digital payment processor migrations are typically rapid, taking no more than a few hours or days, a month-long hold has raised eyebrows.
Some speculate the company is struggling to secure a new payment processor, a challenge often faced by high-risk clients.
Given Buggs’ regulatory issues and the firm’s entanglement in prior controversies, mainstream processors may be reluctant to take on the business.
Adding to the uncertainty is Buggs’ recent asset freeze, agreed to in January 2025 as part of his legal settlement in the CFTC case.
It remains unclear whether any assets linked to iBuumerang have been affected or whether i-Payout has engaged with the court-appointed receiver handling The Traders Domain’s affairs.
A deep Looking Ahead
As of now, iBuumerang has confirmed it will miss its scheduled May 20th commission payments, extending the withdrawal freeze past a full month.
The company has indicated another update is expected around June 20th.
With no new payout partner formally announced and mounting concerns over the security and availability of promoter funds, many within the MLM community are closely monitoring the situation.
