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
The Federal Bureau of Investigation is joining the investigation into one of the largest alleged crypto scams of 2020.
FBI joins Mirror Trading probe in Africa to help recover US investor funds
Marie Huillet
2021-08-04T10:33:51+01:00
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News
Four of six U.S.-based promoters of the notorious BitConnect Ponzi scheme have reached settlement agreements with the SEC.
SEC closes in on settlements with US BitConnect promoters for millions
Samuel Haig
2021-07-08T03:25:39+01:00
5261
News
The SEC has appointed New Jersey Attorney General Gurbir S. Grewal as the Director of the Division of Enforcement.
SEC appoints New Jersey Attorney General as director of enforcement
Brian Quarmby
2021-07-01T06:59:29+01:00
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News
AfriCrypt’s founders deny running off with billions in customers funds, asserting they went into hiding after receiving death threats from “dangerous people.”
South African asset manager denies stealing billions from users, claims $5M was lost in hack
Brian Quarmby
2021-06-29T04:50:50+01:00
6079
News
Billions worth of Bitcoin has reportedly vanished along with the operators of South African crypto firm AfriCrypt. Is it a scam or a hack?
$3.6B in Bitcoin vanishes in ‘hack’ along with owners of South African crypto platform
Brian Quarmby
2021-06-24T02:36:41+01:00
27535
News
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...
With US regulators handing out $2.5B in fines since 2014, crypto is not the 'wild west' of finance
Brian Quarmby
2021-06-22T07:22:13+01:00
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News
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 investment...
Alleged $3.6B crypto Ponzi's 'victims' still believe the exchange is legit
Brian Quarmby
2021-06-10T05:40:53+01:00
11330
News
The SEC says five individuals "promoted a global unregistered digital asset securities offering."
SEC charges 5 for illegally promoting $2 billion Bitconnect Ponzi scheme
Andrew Thurman
2021-05-28T22:48:42+01:00
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