The Federal Trade Commission, alleging that 2Extreme has been operating as an illegal pyramid scheme, has requested a federal judge to shut the company down. In a press release on December 13, 1999, the FTC noted that

"the pyramid scam, disguising itself as a legitimate multi-level marketing plan, used deceptive earnings claims to lure consumers to enroll in the scheme. The company claims to have recruited more than 60,000 consumers."

Dallas-based 2Xtreme, and its successor, Denver-based USAsurance Group/Akahi, were named in the complaint, along with John T. Polk, Patrick Farah, Peter Hirsch, AKAHI.COM, Inc., 2XTREME Performance International, LLC., and AFEW, Inc. The businesses are based in Englewood, Colorado; Dallas, Addison, and Carrollton, Texas. The complaint was filed in US District Court for the District of Maryland, Northern Division on December 9.

The FTC complaint seeks preliminary and permanent injunctive relief, and redress of consumer injuries.