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.
News
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.”
Florida man escapes paying a $4.5M SEC penalty over a crypto Ponzi scheme
Brian Quarmby
2021-03-25T02:42:06+00:00
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Video
Kraken Bitcoin strategist Pierre Rochard debates professor of computer science Jorge Stolfi on whether Bitcoin meets the definition of a Ponzi scheme.
Is Bitcoin a Ponzi scheme? Pick your side in the latest Cointelegraph Crypto Duel!
Marco Castrovilli
2021-03-05T19:30:00+00:00
29320
Opinion
Crypto scams don’t just impact investors but the credibility of the industry as a whole, stagnating crypto’s progress.
Crypto industry must keep scammers from stealing another $16 billion
Lihan Hyunwoo Lee
2021-02-02T18:32:46+00:00
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News
The Financial Sector Conduct Authority is demanding tighter regulatory control over cryptocurrency.
Scams are driving South African authorities to regulate crypto trading
Greg Thomson
2021-01-27T10:17:28+00:00
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News
Arrested by the FBI earlier today, 24-year-old Spence also faces civil charges of fraud that look to bar him from future trading.
Update: "Coin Signals" trader also faces charges from the CFTC
Kollen Post
2021-01-26T20:14:47+00:00
7720
News
The trader was both lying to investors and using an unregistered derivatives strategy on BitMEX.
FBI arrests 24-year-old crypto trader for commodities and wire fraud
Kollen Post
2021-01-26T17:20:46+00:00
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News
The "public face of OneCoin" is in plea talks for a range of charges
OneCoin marketing guru in plea talks
Andrew Thurman
2020-12-19T18:21:04+00:00
21771
News
The SEC subpoenas the former owner's bank accounts to find out what happened to investments into Crypto Traders Management.
Crypto trader and accused Ponzi scheme is now fighting the SEC and jilted investors
Kollen Post
2020-12-08T18:50:08+00:00
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