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 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
30052
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
4047
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
7737
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
21808
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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