The scheme allegedly claimed it could generate returns of up to 2.2% a day by leveraging AI to trade more often and with higher profits than a person could.
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.
A public burn function introduced in the latest upgrade allegedly allows users to burn tokens from other addresses.5968
Co-founder Pablo Renato Rodriguez and three senior promoters all recently pled guilty to the charges, while the other founder pleaded guilty in October 2021.9638
According to the Department of Justice, Forsage employed smart contracts that were coded in ways consistent with a Ponzi scheme.4642
Senator Elizabeth Warren claims the Trump Administration “gave a green light” to a cryptocurrency market full of junk tokens, rug pulls and Ponzi schemes.4634
The millions will be distributed among the select number of victims, but thousands more were impacted by the $2.4 billion fraudulent scheme.6463
The latest court action now takes the number of V Global execs behind bars up to seven, as the CEO was previously sentenced to a 22-year prison term.9172
The co-founder of the fraudulent scheme is set to be sentenced in April 2023 on charges relating to wire fraud and money laundering.12263
Various creators and promotors of two allegedly fraudulent crypto companies are facing a litany of charges that could land them 20 years in jail.12125
Bitcoin price aims for support at $17,000, while LTC follows a pre-halving narrative and ETH looks somewhat bullish in its BTC pair.10669
Two other associates that helped run the U.S.-based fraudulent crypto platform EmpiresX left the country early this year and are believed to be in Brazil.5192
Locals say they are having to contend with vacant apartments and the loss of job opportunities once provided by the collapsed exchange.48288
FTX and Alameda’s Ponzi-like trading scheme has dealt a heavy blow to the entire crypto industry. Here are three developments to keep a close eye on.14636
The Federal judge overseeing the Celsius case has asked for an investigation to look into whether the firm acted like a Ponzi scheme.4219
The whereabouts of “Cryptoqueen” Ruja Ignatova are still unknown, but the charges against OneCoin members are starting to pile up.4001