Popularity and followership are definitely not among the properties that qualify a given entity as a real cryptocurrency. Here are some examples of such entities that could be easily referred to as pyramid schemes.
The BitInstant CEO Charlie Shrem together with Robert M. Faiella were arrested and the current accusations of breaking several federal laws include money laundering, turnover of narcotics and support of criminal activities.
As reported yesterday, BitInstant CEO and Bitcoin Foundation Vice Chairman Charlie Shrem was arrested at JFK Airport in New York and charged with conspiring to launder money.