22/09/2025
Many people—legal experts, journalists, and especially victims—ask the same question: Why aren’t these exploitative schemes immediately illegal and enforceable?
Here’s why the law struggles to keep up:
1. Outdated Laws
Most fraud and consumer protection laws were written before the rise of global online “wealth creation” schemes, influencer marketing, and crypto scams.
Grey areas: Many of these programs are marketed as “education” or “mentorship,” which can make it hard to prove criminal intent or direct financial harm under current statutes.
2. Jurisdictional Complexity
The Tates operate across multiple countries, using offshore companies, crypto payments, and constantly shifting platforms.
Enforcement agencies in one country often can’t act unless there’s a clear, direct link to their own citizens being defrauded—and even then, extradition and prosecution are slow.
3. Regulatory Gaps
Online platforms (like social media, payment processors, and web hosts) are often slow to ban or restrict these schemes, especially when the content skirts the line of legality.
Crypto and offshore banking make it easy to hide profits and avoid traditional financial oversight.
4. Legal Loopholes and Aggressive Lawyering
The Tates and similar operators use complex terms and conditions, disclaimers, and aggressive legal teams to shield themselves from liability.
Victims are often forced into arbitration or non-disclosure agreements, making it even harder to build a criminal case.
5. Enforcement Priorities
Law enforcement agencies are often under-resourced and prioritize violent crime or large-scale financial fraud over “grey area” online schemes.
Proving intent to defraud—especially when some users do make money or claim to benefit—can be extremely difficult.
What’s Changing?
Some countries are updating laws to better regulate online “get rich quick” schemes, influencer marketing, and crypto fraud.
Class action lawsuits and investigative journalism are exposing these practices and pushing for reform.
Consumer protection agencies are starting to take a more active role, but enforcement is still slow.
Bottom line:
The law is slow, fragmented, and often outmatched by the speed and global reach of modern online scams. That’s why public awareness, investigative reporting, and civil lawsuits are sometimes the only tools that work—until the law catches up.
