{"investigation":{"slug":"gym-network","entity_name":"Gym Network","trust_score":12,"severity_base":null,"score_modifier":0,"confidence":0.82,"status":"published","content_type":"investigation","summary":"Gym Network (GYMNET) is a Binance Smart Chain-based DeFi protocol launched in March 2022 that operates an affiliate investment scheme with hallmarks of a Ponzi structure, requiring continuous recruitment to sustain promised returns of up to 250% annually. The project was founded by Claudio Catrini, who has prior involvement in the OneCoin fraud, and suffered a $2.1 million smart contract exploit in June 2022. The GYMNET token has declined approximately 99.8% from its all-time high of $1.90 to under $0.004 as of 2026.","sections":[{"content":"Gym Network (gym.network) is a BEP-20 token-based protocol on the Binance Smart Chain launched on March 25, 2022. It presents itself as a 'DeFi aggregator' and 'yield farming' platform with an integrated affiliate system. The project's native token, GYMNET, was deployed and affiliates are required to hold and invest in GYMNET to advance through a 15-rank hierarchy ranging from 'Member' to 'Legend.' The minimum investment entry is 0.05 BNB, and the top rank requires 200 BNB plus 500,000 GYMNET tokens. The project's domain was registered on December 13, 2021, and the GYMNET token was deployed to BSC mainnet on October 19, 2021. According to third-party analysis, the platform has no independently retailable products or services outside of marketing membership in the affiliate system itself, which is a hallmark feature of investment fraud structures.","heading":"Overview and Project Structure","sources":[{"url":"https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://bscscan.com/token/0x3a0d9d7764fae860a659eb96a500f1323b411e68","name":"bscscan.com","type":"other","credibility":3},{"url":"https://www.coingecko.com/en/coins/gym-network","name":"coingecko.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Gym Network's CEO is identified as Claudio Catrini, a German national who relocated to Bulgaria around late 2021. Catrini's prior business history includes co-founding Trendda (2019), Athletic Factory MLM (mid-2021, now defunct), and operating Claudio Catrini Akademie since 2003. According to the MLM review site BehindMLM and corroborated by German-language forum records, Catrini and his business partner Tobias Rethaber promoted the OneCoin cryptocurrency scheme — widely considered one of the largest crypto frauds in history, with estimated losses exceeding $4 billion globally. Catrini is also alleged to have promoted the Platincoin scheme after OneCoin. The spinoff project Gym Street lists Frank Roehrig as CEO, with Catrini transitioning to 'Advisor.' Gym Street was operated through a Dubai-registered shell company, Meta Networks FZCO. Multiple affiliated representatives including Alberto Mera, Lewis Mhlanga, and Timur Ozturk appear in Gym Network promotions. ZachXBT, the pseudonymous blockchain investigator, has flagged Gym Network as a fraudulent entity.","heading":"Founders and Prior Fraud Associations","sources":[{"url":"https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://behindmlm.com/mlm-reviews/gym-street-review-gym-network-metaverse-nft-spinoff/","name":"behindmlm.com","type":"other","credibility":3},{"url":"http://onecoin.forumprofi.de/Thread-Tobias-Rethaber-Claudio-Catrini-OneCoin-Vertriebscoaching","name":"onecoin.forumprofi.de","type":"other","credibility":3},{"url":"https://www.claudio-catrini.de/en/home/","name":"claudio-catrini.de","type":"other","credibility":3}],"severity":"medium"},{"content":"Gym Network markets passive returns of 6.5% annually on invested BNB and 200% annually on invested GYMNET, with marketing materials citing 250% annual ROI and a 9.4% monthly ROI when compounding. The unilevel commission structure pays referral commissions across up to 16 affiliate levels based on rank. Independent analysts at BehindMLM classify the project as a Ponzi scheme because it lacks external revenue: the only funds available for payouts are those invested by incoming affiliates. As with any scheme dependent on new investment inflows, when recruitment slows the scheme cannot sustain promised returns. The GYMNET token itself is a BEP-20 token with no independently established utility outside the Gym Network ecosystem, and CoinGecko warns that the smart contract owner retains the ability to mint new tokens and modify the tax rate post-deployment — creating significant centralized risk for holders.","heading":"Alleged Ponzi and MLM Scheme Structure","sources":[{"url":"https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://www.coingecko.com/en/coins/gym-network","name":"coingecko.com","type":"other","credibility":3},{"url":"https://www.scam-detector.com/validator/gym-network-review/","name":"scam-detector.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On June 8, 2022, Gym Network's GymSinglePool contract was exploited for approximately $2.1 million (8 million GYMNET tokens, equivalent to roughly 3,300 BNB at the time). The vulnerability resided in the depositFromOtherContract() function, which contained a critical authentication flaw: rather than executing a token.safeTransferFrom() call to transfer actual tokens into the contract, the function instead only called token.approve(address(this), _depositAmount), approving the pool to spend its own funds. This allowed the attacker to deploy a custom contract and falsely record 8 million GYMNET as deposited while transferring zero tokens. The attacker then withdrew the full recorded amount, converting approximately 7.2 million tokens to BNB and sending 800,000 tokens to separate wallets. The GYMNET token price crashed from approximately $0.20 to $0.026 in the immediate aftermath, though it subsequently recovered partially to around $0.08. Security analysts noted that the exploited contract had only been deployed for two days before the attack and was not covered by Gym Network's prior security audit. Observers raised questions about whether the vulnerability was the result of carelessness or intentional design. The fix applied afterward added an 'onlyBank' modifier to the depositFromOtherContract() function, restricting access to the designated bank address.","heading":"$2.1 Million Smart Contract Exploit (June 2022)","sources":[{"url":"https://chainzoom.substack.com/p/21-million-hack-on-gym-network","name":"chainzoom.substack.com","type":"other","credibility":3},{"url":"https://www.certik.com/resources/blog/4JIb87rize9zsgO7b86cJ1-gym-network-exploit-analysis","name":"certik.com","type":"other","credibility":3},{"url":"https://immunebytes.com/blog/gym-network-protocol-security-breach-june-8-2022-detailed-analysis/","name":"immunebytes.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Around August 2022, as the original Gym Network scheme showed signs of stress, Gym Network announced Gym Street, marketed as 'the Metaverse counterpart of Wall Street.' Gym Street introduced a second BEP-20 token, VBTC, alongside the existing GYMNET token. The investment model required affiliates to purchase $100 NFT 'land' positions, with additional $50 investment slots per position (capped at $200 total), for a maximum initial outlay of $300, marketed with a claimed 100% ROI. Rank advancement in Gym Street required escalating NFT purchases, from $250 for 'Rookie I' to $40,000 for 'Legends.' The spinoff was operated through Meta Networks FZCO, a Dubai-registered shell company. BehindMLM characterized Gym Street as a parallel Ponzi scheme, noting that the VBTC token — like GYMNET — has no independent value outside the scheme, and that the project's sustainability depends entirely on continued recruitment. By December 2022, both Gym Network and Gym Street websites were reported to have only a few thousand monthly visitors, consistent with a scheme in decline.","heading":"Gym Street Spinoff and Metaverse Expansion","sources":[{"url":"https://behindmlm.com/mlm-reviews/gym-street-review-gym-network-metaverse-nft-spinoff/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://bsc.news/post/gym-street-acquires-japanese-kabutoucho-metaverse-expanding-ecosystem-and-experience","name":"bsc.news","type":"other","credibility":3}],"severity":"medium"},{"content":"GYMNET reached its all-time high of $1.90 on April 14, 2022, approximately three weeks after launch. As of May 2026, the token trades at approximately $0.004, representing a decline of approximately 99.8% from the all-time high. The token's all-time low of $0.00001987 was recorded on January 2, 2026. Current market capitalization is under $500,000 with 24-hour trading volume of approximately $1,200, concentrated on PancakeSwap. The project has migrated from its original contract (0x3a0d9d7764fae860a659eb96a500f1323b411e68) to a V2 contract (0x0012365f0a1e5f30a5046c680dcb21d07b15fcf7). CoinGecko and BscScan flag two elevated risk indicators: (1) the smart contract owner retains the ability to mint new tokens, and (2) the contract contains a variable tax function allowing the owner to change tax rates post-deployment. The project's initial TVL of $13–19 million in the weeks after launch has not been publicly reported at equivalent levels since.","heading":"Token Price Collapse and On-Chain Risk Indicators","sources":[{"url":"https://www.coingecko.com/en/coins/gym-network","name":"coingecko.com","type":"other","credibility":3},{"url":"https://coinmarketcap.com/currencies/gym-network/","name":"coinmarketcap.com","type":"other","credibility":3},{"url":"https://bscscan.com/token/0x0012365f0a1e5f30a5046c680dcb21d07b15fcf7","name":"bscscan.com","type":"other","credibility":3}],"severity":"medium"},{"content":"No specific SEC, CFTC, DOJ, or FTC enforcement actions targeting Gym Network or its principals have been identified in publicly available regulatory records as of May 2026. The project appears to operate from Bulgaria (noted for limited MLM enforcement) and through a Dubai-based shell company (Meta Networks FZCO). The absence of regulatory action does not indicate legitimacy; rather, it may reflect the cross-jurisdictional complexity of the scheme and the relatively small scale of individually documented investor losses. ZachXBT has flagged the project. The Texas State Securities Board and other regulators have issued general warnings about MLM-structured crypto investment schemes with the characteristics Gym Network exhibits.","heading":"Regulatory and Legal Status","sources":[{"url":"https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","name":"behindmlm.com","type":"other","credibility":3},{"url":"https://ssb.texas.gov/news-publications/securities-commissioner-warns-investors-about-mlm-crypto-investment-schemes","name":"ssb.texas.gov","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2021-10-19","event":"GYMNET token deployed to Binance Smart Chain mainnet.","source":""},{"date":"2021-12-13","event":"gym.network domain registered.","source":""},{"date":"2022-03-25","event":"Gym Network formally launches; GYMNET token priced at $0.20 at launch. TVL reaches $13M within days.","source":""},{"date":"2022-04-14","event":"GYMNET token reaches all-time high of $1.90.","source":""},{"date":"2022-06-08","event":"$2.1 million exploit of GymSinglePool contract via depositFromOtherContract() authentication flaw. GYMNET crashes ~90% in immediate aftermath.","source":""},{"date":"2022-06-09","event":"Gym Network applies fix adding 'onlyBank' modifier to exploited function. CertiK and ImmuneBytes publish exploit analyses.","source":""},{"date":"2022-08","event":"Gym Network announces Gym Street metaverse spinoff, marketed as 'the Metaverse counterpart of Wall Street.' Introduces VBTC token.","source":"","date_original":"2022-08-01"},{"date":"2022-12-30","event":"BehindMLM reports Gym Network is struggling; Gym Street NFT metaverse spinoff launched as original scheme declines.","source":""},{"date":"2023-04-21","event":"GYMNET reaches then-all-time low of approximately $0.01676.","source":""},{"date":"2026-01-02","event":"GYMNET records absolute all-time low of $0.00001987.","source":""},{"date":"2026-05-27","event":"GYMNET trading at approximately $0.004, down ~99.8% from all-time high; market cap under $500,000.","source":""}],"sources_used":[{"url":"https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","name":"behindmlm.com","type":"other","archive_url":"http://web.archive.org/web/20251116032824/https://behindmlm.com/mlm-reviews/gym-network-review-bnb-to-gymnet-token-ponzi-scheme/","credibility":3,"archive_timestamp":"2025-11-16T03:28:24+00:00"},{"url":"https://bscscan.com/token/0x3a0d9d7764fae860a659eb96a500f1323b411e68","name":"bscscan.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://www.coingecko.com/en/coins/gym-network","name":"coingecko.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://behindmlm.com/mlm-reviews/gym-street-review-gym-network-metaverse-nft-spinoff/","name":"behindmlm.com","type":"other","archive_url":"http://web.archive.org/web/20251109184008/https://behindmlm.com/mlm-reviews/gym-street-review-gym-network-metaverse-nft-spinoff/","credibility":3,"archive_timestamp":"2025-11-09T18:40:08+00:00"},{"url":"http://onecoin.forumprofi.de/Thread-Tobias-Rethaber-Claudio-Catrini-OneCoin-Vertriebscoaching","name":"onecoin.forumprofi.de","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://www.claudio-catrini.de/en/home/","name":"claudio-catrini.de","type":"other","archive_url":"http://web.archive.org/web/20260520132437/https://www.claudio-catrini.de/en/home/","credibility":3,"archive_timestamp":"2026-05-20T13:24:37+00:00"},{"url":"https://www.scam-detector.com/validator/gym-network-review/","name":"scam-detector.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://chainzoom.substack.com/p/21-million-hack-on-gym-network","name":"chainzoom.substack.com","type":"other","archive_url":"https://web.archive.org/web/20260829233548/https://chainzoom.substack.com/p/21-million-hack-on-gym-network","credibility":3,"archive_timestamp":"2026-08-29T23:35:48+00:00"},{"url":"https://www.certik.com/resources/blog/4JIb87rize9zsgO7b86cJ1-gym-network-exploit-analysis","name":"certik.com","type":"other","archive_url":null,"credibility":3,"archive_error":"error:not-found","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://immunebytes.com/blog/gym-network-protocol-security-breach-june-8-2022-detailed-analysis/","name":"immunebytes.com","type":"other","archive_url":"http://web.archive.org/web/20251107213908/https://immunebytes.com/blog/gym-network-protocol-security-breach-june-8-2022-detailed-analysis/","credibility":3,"archive_timestamp":"2025-11-07T21:39:08+00:00"},{"url":"https://bsc.news/post/gym-street-acquires-japanese-kabutoucho-metaverse-expanding-ecosystem-and-experience","name":"bsc.news","type":"other","archive_url":"https://web.archive.org/web/20260829233232/https://bsc.news/sponsored","credibility":3,"archive_timestamp":"2026-08-29T23:32:32+00:00"},{"url":"https://coinmarketcap.com/currencies/gym-network/","name":"coinmarketcap.com","type":"other","archive_url":"http://web.archive.org/web/20260110161716/https://coinmarketcap.com/currencies/gym-network/","credibility":3,"archive_timestamp":"2026-01-10T16:17:16+00:00"},{"url":"https://bscscan.com/token/0x0012365f0a1e5f30a5046c680dcb21d07b15fcf7","name":"bscscan.com","type":"other","archive_url":"http://web.archive.org/web/20260110161814/https://bscscan.com/token/0x0012365F0a1E5F30a5046c680DCB21D07b15FcF7","credibility":3,"archive_timestamp":"2026-01-10T16:18:14+00:00"},{"url":"https://ssb.texas.gov/news-publications/securities-commissioner-warns-investors-about-mlm-crypto-investment-schemes","name":"ssb.texas.gov","type":"other","archive_url":"http://web.archive.org/web/20260117073903/https://www.ssb.texas.gov/news-publications/securities-commissioner-warns-investors-about-mlm-crypto-investment-schemes","credibility":3,"archive_timestamp":"2026-01-17T07:39:03+00:00"}],"source_tags":["defillama"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-04T02:54:49.209314+00:00","updated_at":"2026-08-30T05:14:13.186281+00:00"}}