I had the same dilemma... I checked out the guy that tried to recruit me and saw he also had accounts for his kids (and dog for all I know...). His downline also did the same thing so in my mind they are knowingly trying to play the system, junior scammers. So not so much 'sheep' as people trying to make a quick buck before it goes bust. They know what they got into so they can get themselves out.
I tried to warn people I know... I know one person that dropped in 1 BTC in their own name and 1 BTC in each of their kids names... Was told I was just "believing what I read on the internet" and then ignored.
I live and breathe internet and am very involved in crypto currency having done everything from mine it, earn it in airdrops on bitcointalk signature campaigns to run hundreds of masternodes during masternode fever, I've been community manager on coins, I've been support guy for coins... When these people talk it's CLEAR they don't ACTUALLY know how blockchain stuff works for a start.
When I say "this crypto related thing is a scam"...It's not because I'm jealous or don't understand... FURTHERMORE I'm a software developer (and have been for 15+ years) so when I say "this backend is TRASH and CHEAP and NASTY" it's because I know stuff about writing code/systems.
People don't want to listen.