News
SEC has filed a lawsuit in the U.S. District Court against the founders and promoters of Forsage, who allegedly fueled a $300 million “textbook pyramid and Ponzi scheme.”
6606
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.
- News
Pump-and-dump in crypto is an orchestrated fraud that involves misleading investors into purchasing artificially inflated tokens — typically marketed and hyped by paying celebrities and social influencers.
11225 - Markets News
Poor risk management, insufficient revenue and the overuse of leverage are the core reasons why DeFi is crumbling.
3649 - News
Stablecoins like USDT and USDC would be doing just fine if properly regulated, while Bitcoin is a “Ponzi scheme” in any case, China’s BSN chair told Cointelegraph.
6094 - Video
The CEO of Swan Bitcoin, Cory Klippsten, criticizes Celsius Network and other centralized crypto lending platforms, warning of possible market contagion.
4093 - News
Mixing conspiracy theories, a distrust for traditional institutions and hopium in crypto, two influencers are alleged to have made millions using pump-and-dump schemes.
5352 - Video
Binance CEO CZ voices skepticism around the relaunch of the Terra blockchain and its new LUNA token following the latest fiasco.
6055 - News
Jeremy Spence, aka Coin Signals, scammed around $5 million from 170 investors who were unaware their crypto was used to fund a Ponzi scheme.
7924 - Altcoin Watch
Waves founder Sasha Ivanov says Alameda Research is behind the ongoing WAVES price decline.
9058 - News
BitConnect founder is being sued for illegally raising funds and defrauding American investors of over $2 billion.
6975 - News
A San Diego-based federal grand jury charged Kumbhani for orchestrating an alleged Ponzi scheme via BitConnect’s “Lending Program” among other allegations.
8922 - News
Comments made by Warren Buffet’s right-hand man and vice chairman of Berkshire Hathaway have gone viral for their imaginative depiction of cryptocurrency.
9932 - Analysis
The year 2021 has seen an increase in “rug pulls,” a new scam capable of luring both early adopters and new crypto investors.
12407 - News
Michael Ackerman faces up to 20 years in jail if convicted of fraud following his guilty plea.
9102 - News
Scams make up the largest share of funds sent from Eastern Europe to illicit addresses.
2778