JaoPoker used a multi-level scheme (Ponzi scheme) requesting an affiliate code at the sign-up moment. The problem was actually the affiliate code. You needed to pay real money ($250) to have your own affiliate code and refer other players, so this is like paying to refer players to the poker room which sounds only like a huge pyramid. Now, the poker room seems to be closed, the player's funds are not segregated and probably a bankruptcy is on the way.
Error message login into JaoPoker
Also, an internal email was shared by the popular "Todd Witteles", saying that the room is closed and the games are being moved to another site:
There was a lot of warnings online, but players and shady affiliates were still working with JaoPoker under the promise of having huge profits.
Not only the Ponzi scheme was the problem, but the shady behavior of the room representatives like Tam Nguyen who made terrible comments online fighting with some other affiliates:
So, this a warning to all our players: stay away from JaoPoker and from any other poker room with shady behavior , and please if you have any doubt please get in touch with our team.
Juan, WorldPokerDeals team