The CFTC has pushed for a default ruling after failing to locate the alleged director of a $147 million crypto Ponzi scheme.
Ponzi Scheme News
A Ponzi scheme is an investment scam which involves convincing victims of high return rates and small risks using fabricated reports made with returning the revenue for older investors with the money of the new ones. Companies that engage in Ponzi Schemes are only working on attracting new investments without generating any legitimate product. This scheme is named after Charles Ponzi, a Italian con artist, who performed such a scheme in 1920s in the US, costing his investors about $20 million. However, Ponzi’s scam wasn’t the first of its kind, though it was one of the largest. A Ponzi scheme is similar to a pyramid scheme and is performed to this day in different variations. For example, scammers have employed cryptocurrencies and ICOs to perform Ponzi schemes, Bitcoin is often called a variation of a Ponzi scheme and economic bubbles of different stock assets often take on a form of a Ponzi scheme, blowing the real value out of proportion.
- Bitcoin Flips Bullish — But Here’s Why BTC Price May Still Hit $3.9K
- 7 Crypto Firms Targeted by 11 Lawsuits in New York
- BIS Calls for Central Bank Digital Currencies Amid Coronavirus Pandemic
- Bitcoin’s Hedging Performance in the Wake of the Coronavirus Outbreak
- Top 5 Cryptos Not Named Bitcoin This Week (Mar 29): XMR, BNB, HT, CRO, BSV