Four of six U.S.-based promoters of the notorious BitConnect Ponzi scheme have reached settlement agreements with the SEC.
Ponzi Scheme News
What is a Ponzi scheme? An illegal endeavor, Ponzi schemes essentially aim to attract and take advantage of unsuspecting investors by touting untrue claims of low risk and significant reward. Ponzi schemes typically stay afloat by using money from newer participants to pay older ones, thus making the endeavor seem profitable — so long as new participants continue flowing in.
The endeavor is named after Charles Ponzi, an Italian con artist who performed such a scheme in the 1920s in the United States, costing his investors about $20 million. Ponzi’s scam wasn’t the first of its kind, although it was one of the largest. Ponzi schemes share some commonalities with pyramid schemes, and neither of the two is legal in the United States. Bitcoin (BTC) has been called a Ponzi scheme at times over the years, although its performance and structure have proven otherwise.
The SEC has appointed New Jersey Attorney General Gurbir S. Grewal as the Director of the Division of Enforcement.2337
AfriCrypt’s founders deny running off with billions in customers funds, asserting they went into hiding after receiving death threats from “dangerous people.”6067
Billions worth of Bitcoin has reportedly vanished along with the operators of South African crypto firm AfriCrypt. Is it a scam or a hack?27505
A new report from Elliptic has found that unregistered securities offerings account for more than half of all crypto-related fines handed out by U.S. regulators.3358
Some of those caught up in an alleged $3.6 billion crypto Ponzi scheme are refusing to aid police investigations as they still expect to triple their investments.11325
The SEC says five individuals "promoted a global unregistered digital asset securities offering."47992
I should know, I helped chase down $1 billion of his fraudulently-obtained cash.18265
The founder of the Argyle Coin Ponzi scheme has escaped paying a $4.5 million penalty to the SEC for operating a “web of fraudulent companies.”12098
Kraken Bitcoin strategist Pierre Rochard debates professor of computer science Jorge Stolfi on whether Bitcoin meets the definition of a Ponzi scheme.31043
Crypto scams don’t just impact investors but the credibility of the industry as a whole, stagnating crypto’s progress.5438
The Financial Sector Conduct Authority is demanding tighter regulatory control over cryptocurrency.4176
Arrested by the FBI earlier today, 24-year-old Spence also faces civil charges of fraud that look to bar him from future trading.7778
The trader was both lying to investors and using an unregistered derivatives strategy on BitMEX.8797
The "public face of OneCoin" is in plea talks for a range of charges22084