Ponzi schemes are named after Charles Ponzi, an Italian swindler who, in the early 1920s, defrauded hundreds of victims with his deceptive money-making system that ran for over a year. In essence, a Ponzi scheme is a fraudulent investment scam where returns to existing investors are paid from funds contributed by new investors. The flaw lies in the fact that investors in the latter stages may never receive any returns.
The operation of a Ponzi scheme typically follows these steps:
A promoter takes $1000 from an investor, promising to repay the initial amount plus a 10% interest at the end of a set period (e.g., 90 days).The promoter secures two more investors before the 90-day period elapses, using their $2000 to pay the first investor $1100. The first investor is often encouraged to reinvest the initial $1000.By recruiting new investors, the fraudster can fulfill the promised returns to earlier investors, urging them to reinvest and bring in more participants.As the scheme expands, the promoter must continuously attract new investors to sustain it and meet the promised returns.Ultimately, the scheme becomes unsustainable, leading to the promoter's exposure or disappearance with the accumulated funds.
#webgtr #BTC #etf #ARB #ponzischeme

#ponzischeme
#CryptoNewss

A Ponzi scheme is a fraudulent investment operation where returns to earlier investors are paid from the capital contributed by newer investors, rather than from profit earned by the operation of a legitimate business. Named after Charles Ponzi, who became notorious for using this technique in the early 20th century, Ponzi schemes lead to inevitable collapse as they require a continuous influx of new investors to sustain payouts.

🚀Characteristics of Ponzi Schemes:

1. 👉High Returns with Little Risk: Promises of high, consistent returns with little or no risk.
2. 👉Overly Consistent Returns: Claims of unusually consistent returns regardless of market conditions.
3. 👉Unregistered Investments: Investments that are not registered with financial authorities.
4. 👉Unlicensed Sellers: Promoters who are not licensed or registered with recognized financial institutions.
5. 👉Secretive or Complex Strategies: Lack of transparency or overly complex investment strategies that are difficult to understand.
6. 👉Difficulty Receiving Payments: Difficulty in withdrawing funds or receiving payments as promised.
7. 👉Pressure to Reinvest: Encouragement to reinvest earnings instead of taking payouts.

🚀How to Identify a Ponzi Scheme:

1. 👉Investigate the Promoter: Check if the promoter or company is registered with financial authorities.
2. 👉Analyze the Investment : Be wary of investments that promise high returns with little risk or guarantee consistent returns.
3. 👉Understand the Business Model : Ensure you understand how the investment generates returns. Avoid investments that are vague or overly complex.
4. 👉Verify Returns : Compare the promised returns with those of legitimate investments. Consistent, high returns are often a red flag.
5. 👉Check References and Reviews : Look for independent reviews or references. Beware of testimonials that seem too good to be true.
6. 👉Look for Red Flags : Be cautious of any pressure to reinvest, secrecy, or difficulty in withdrawing funds.

Being aware of these characteristics and doing thorough due diligence can help you avoid falling victim to a Ponzi scheme.

Below you'll find both active, inactive, dormant, rebooted, rebranded and collapsed businesses (503):(majority of these lists has either rug pull or rebranded their names & company websites altogether but by their same tales you shall know them 😆😅)• 1044Pro• 5 Billion Sales• 50/50 Crowdfunding (reboot to CoopCrowd)• 4QLife• 8 Figure Dream Lifestyle• ABA Marketing (rebooted to 7 Flags Club) • ACN• Affluence Network• AI Marketing (reboot to CashBackPro)• Alliance In Motion Global (AIM Global)• AirBit Club• Alcor Trade (former Antares Trade)• Algotech (rebooted as WinWheel)• Allied Wallet• Alluyssian Sciences• Alovea• Aluva• Antares Trade (reboot to Alcor Trade)• AmpLIFEi• Antis Capital• AntUSD• Apex Financial• Aplex VA  (part of Throne Legacy Capital)• Appi Travels• Arctic Nutrition• Areons• Artery Network• Assure For Life• Atteva• AuBit (rebooted as Freeway) • Average Joe Profit System • AuLives (acquired by Validus, merged)• Aura 4 Finance• AutoTrade Gold (Panthera Trade Technologies, LegoMarket LLC, Pansaka)• Auvoria Prime •Baccarat• Bakuhatsu • Belfast Capital Group • Bastion Invest• BE, Be Rules or Be Factor (former Mellius)• Be International• Bedrock Experts• Better Globe (prev Green Planet) • Beurax• Beyond• Bitassets Venture• BitClub Network • BitCoiin• BitcoLoan• BitConnect • Bitflow Asset• Bitles• BitLocity• BitPayProfits• BitPlam• BitRobot• BitWings• Bixo Money (former BixoTrade)• BlackOxygen Organics• Blessings In No Time (BINT)• Blockchain Capital• Blockchain Global (ACX)• Block Consult• BloxTec• BNB33 Club• BNBBusiness • BNB Profit• BNB Stake• BoldGains International• Bomb Party• BotTronic• Bruxis Trading• Bulavita• Juuva (former Wakaya Perfection)• BullRun• Cannerald• CashBack Marketing• CashBackPro (former AI Marketing)• Calerie• Carcoin• Cash Forex Group (CashFX)• CBI Global (reboot from Uhuru Tribe)• Centurion Global (former Ducatus Network)• CHY Mall• ClearUnited• CoinChain Digital• CoinOption• Cloud Horizon • Cloud Token• ClubShop• Commodum• Common Sense Wellnes Worldwide• Conligus (sold to OneCoin)• CTCoin (Control Traders)• Control Finance• Coop5050 (former CoopCrowd and 50/50 Crowdfunding• Cooperative Crowdfunding• CopyProTraders• Corsair Group (Cloud Horizon) • Crowd 1 (Planet IX) • Crowdbridge Global • Crunchi• CrypArena• Crypto Advice (Mended Minds, Secugenius, QuickX)• Cryptoberg• CryptobestFX247• Cryptolon• CryptoSook• CryptoSpot• CubeBit (reboot to CubeBit 2.0)• CVC Funding• CyberChain • DagCoin • Daisy AI • Daxio• DDKoin• DeFiNatics• DigiCoin• Digital Income Systems• Digital Money Markets• Digital Profit• Direct Cellars• Divine Prosperity Blossom• doTerra• Driven Properties• Ducatus Network (reboot to Centurion Global)• DuoLife•Eclipcity Global• Eaconomy (partnered with Beyond Wealth)• Easy1Up• EclipCity Global • EcoTrade• eComelize • Edain (EAI token)• Elamant• Elevate Pass• Elixoo• Elon Musk scam• Elysium Capital• Elysium Network • EndoTech• EmpiresX • Empowered Consumerism (AIM Global)• Enigro Group (rebooted to The Opportunity Network)• eOracle (reboot to Espian Global)• Epika Global• Espian Global (former eOracle) • EtherScan • EtherConnect• Evo Binary• Evolution Gifting Community• EvoRich (Skywaay Capital / NEEW) • Exove Investment• Exp Realty• Expo R&M• F2S Fund• Family First Life• EzyTRX (reboot to EzyTRX II)• Finalmente Global • Finance & Business Consulting (FBC)• Financial Education Services• Finiko• Flexkom (rebooted to Weeconomy)• Fola Global (FamilyMart)• FomoEx• Forsage BUSD  (former Forsage, Fortron, Forsage Tron, Forsage XGold)• Freebay (former G999) • Freedom Group• FirstCoin Club • FutureNet• Future Maker Life Care• Futurion Finance•Gameas• Ganancias Deportivas• G999 (GSPartners, in partnership with Driven Properties)• GainBTT• GetOn Global • Gifting Community• Gift Of Legacy• Global I Gold Online (GIG-OS) (former EmGoldex and Global InterGold)• GladiaCoin• Globalytics Tech Research (rebooted from Jubilee Ace) • Global I Gold Online • Global Investment Trading (dba Liyeplimal)• Global Sponsorship Network (GSN) reboot from OneLink• Global Technology & Innovation • Global Trading Club• Go9Tro• GoFounders• GreenChoyce• GreenGold• GriddyPro•Headway Capital (clone of Ax Trader)• Hulsa• Hustle With Us• HybridTech Global • HyperFund (former HyperCapital)• HyperMining (HyperTech)• Hyperverse/ HyperVerse Ecosystem, short VerseEco, consists of Nebula, Galaxy Decentralized Capital and VerseDAO, HyperCash, HU, MOF, HVT, HDAO, partnership Genaro Network (GNX token)•IAM Worldwide• iBG Finance• iBuumerang/Ellev8 (former Countdown4Freedom)• IDentityUSA• i-Fern• iGenius• iHub Global• Ilgamos (reboot to ILGON)• Impero Solutions• (reboot from EurekaCoin)• INB Network (CashBackPro, former AI Marketing)• InCruises• Indusviva• Infinity Global (Bitex)• Infinity2Global• InnerQuest Global • IM Mastery Academy• Impero Solutions• Incomatrix• Innov8tive Nutrion• Intelligence Prime Capital (IPC Trade,  IPCapital)• Intense Live• International TEFL Organization• Investrix• Investview (reboot as Kuvera Global, brand iGenius)• Infinity Loops• iPro Network (ProCurrency, PROC)• IQ Chain (rebranded to IQ Legacy) • IQ 5050 • iQuandex• Isagenix• iX Global• IX Inversors•Jaa LifeStyle• JetCoin• Jeuness• JN Jewelry• Jonny Blockchain• Jubilee Ace • Just Been Paid 2020• Karatbars International (LifeBase, G999, Freebay)• Kevlar Gifting Communities (reboot to Gifting Communities)• Kindred Hearts• King Finance• KOK Play• Kripto Future• Kryptogenex• Lifestyle Marketing Group• Kuailian Eco-system• Kynect Energy (acquired by ACN)• Laetitude• Learn Build Lead (LBL)• LeoTrade• Level Up 247• LifeBase • Lion's Share• Liv Labs• Liyeplimal Crypto MLM System• Lobto• Longrich• Lucky Dozens• Lueur Lauren International• LuLaRoe• Lyconet• Lyoness• Mag Markets• Majesty Hash pro• MarfinFX• Maskcara (rebranded as Seint) Matt Bot AI• Matic Business• Matrix Pro• Matrix Pro Leads• MBI International• Medical Marketing Project (MMP)• Mfinity Global (former Bulavita)• Mido Finance• Mindset 24 Global• Mined• Mined Capital• Minerva Trading Bot (CMC Invest)• Mining City• MineRift• Mint Builder• Mirollex• Mirror Trading International • MMM Global• MOBE (QualPay)• Model Farming• Monat• Monetize 911• MoneyTime• Monk Trading Investment• MultiplyWESA• MVR Life• My Blockchain Life• MyCOM• MyCryptoWorld• My Daily Choice• My Freedom in 365• MyGBit Mining• My Passive Trades• myWorld  (Lyoness)•Nacometa• Namiro • Nano Club • Nano Crowd • Navan Global (sold to Ariix)• NBH Finance (NBH Group)• Ncrease• Neora (formerly Nerium International) • NewChoyce• New Economic Evolution of the World (NEEW)• NextLevelX• Nexyiu• Nimbus Platform• Nominex• NortheStar• Nowsite Marketing• NRGY GO• NuSkin• Nussentials• Nu Xtrax• Nutonic•Omega Digital• Omegapro Forex • OneCoin • One Eco System (rebranded to OneLife Network) OneDealer AS Norway • OneLife Network • OneLink (Global Sponsorship Network) • OnPassive • Onward Capital• Oola Global• Open Alexa• Opportunity Network (sold to OneCoin)• Orientum • OrbiXVictus (AIM Global) • Orion Finance• Ormeus Global • Oro One• OSM Software Solutions• O'Snap• OXO Worldwide•PandaTron• Paparazzi Accessories• PartyLite• Passive Tron Profits• Paytron BTC• PBX Trading (former Premium Business)• PetronPay• Phenomenal Club• PIE 24/7• Pipz• Post 2 Profits• Praetorian Global International (PGI)• PlusToken (World Blockchain Forum)• PowerPost Profits• Powur• Primary the Ruling Class • Premium Business • Prime International Club• PrivaFund• Prizm• ProCash• Profit Connect• Project Lantern•QNet (rebranded from GoldQuest) • Qtrex• Quaestor Solutions (Quaestor Coin)• QubitLife (rebranded from QubitTech)• Questra World•R Network• RE247365• Recylix• Redwood Scientific Technologies• RengaLife• Riseoo• Riway• Robot22 Trade• Rostek Global• Royal Returns• Roy Club• Royal Q (Sec gov ph)• Safir International • Salvia• SamKoin• Scentsy• Scout & Cellar• SDK Meta• SeedChange• Senexa• SHA-256• ShynXL• Silver Icing• Silver Partners for Profits• SilverStar Live (renamed AI Global, and then again to Ai Expert Advisor)• Silwana Global• Sincere Systems (rebooted as S-Group)• SiteTalk • Six Sigma Trade• SkyWay Capital, CryptoUnits (rebooted to Unitsky String Technologies) • SmartHashes• SmashFund• SnapBots• Snap Delivered• SofTrade AI• Solar Group• Solar Oil Project• Solmax Global• Solvasa• Speed Finance Club• Success By Health• Success Factory• SuperDraft Pro (SuperSports Global)• Swag (Swag Mining, Swag Network)• SwapIT • SwissCoin •Tapestri• Team Travel MVP• TechVision• Telepreneur Corp• Teqra• The $100 System• The Happy Co• The Perfect System• The PLR System  The Prosperity Grid • The Token Network• TheClub.Travel• TelexFree• Toga Limited (reboot to Eostre Berhad)• Torque Trading (TORQ)• Touchstone Success• Torexo Finance• TRVL• Tradera• Trading Insight• Traffic Monsoon• TriumphFX• TronBase• TronCarry• TronCase• TronChain • Tronconomy• TronPlus• TronThunder• Trujivan• Trunited• Trust Investing• Tulian Investment• Turbo Crypto• Twindax• Twin TurboTRX• Unaico • Universal Abundance • Up2Give (U2G Network) • UpMoney• Upnomix• UR Worth It• Ushare• Uulala• Unity Line Builders• Upistic•Vantel Pearls• Vida Divina• Viral Compensation• Visalus Sciences• Viseming• Vitae• Viv• Vollara• VR Tron500• VRDa1•Wakaya Perfection (sold to LaCore Enterprises) WantageOne • WaterMine• Wazzub• We Share Abundance• Weter• Wiseling • Wiseming• Workxon• World Crypto Life• World Enhanced Wealth Ecosystem Global (WeWe Global) • WorldVentures (acquired by Verona International Holdings, rebooted as DreamTrips)• World Wealth Club •Xellis (former Natura4Ever)• XEMXLink• Xifra LifeStyle• Xtreme Pro System•YEP• Youngevity•Zax• Zeek Rewards• Zeniq Coin • Zeonis• ZetBull• Zomoney• Zukul Gold• Zukul Trading#BTC #Ponzi #ponzischeme #scammers. #Cryptoscam

The Austrian Supreme Court has ruled that Lyoness’ affiliate contract and compensation plan are illegal.The decision follows legal action taken by the Austrian Association for Consumer Information (VKI). In Austria’s lower courts, VKI argued47 contractual clauses that were part of Lyconet agreements and so-called Lyconet compensation plans … (lacked) transparent regulations and … clarity.VKI’s lawsuit was decided in its favor. The Supreme Court’s ruling reaffirms earlier rulings and is final.As per a January 11th press-release from VKI, specific Lyoness agreement clauses they took issue with were 3-2019, 9-2019 and 1-2021. Compensation clauses include 3-2019, 9-2019 and 1-2021.A large number of the contested clauses were found by the courts to be non-transparent. For example, terms such as “Bonus Units”, “Customer Units”, “Follow-up Units”, “Transfer Units”, “Lifeline”, “Upline”, “Balance Program”, “Career Program”, “Balance Category”, and “Balance Commission” were used, but their specific meaning remained unclear.The first court already stated that these are not terms of general language use and that they are in themselves incomprehensible without further context.They are also not explained sufficiently clearly throughout Lyconet’s rules and regulations.The appeal court added that even after intensive study of the entire set of regulations, it remains completely unclear for average consumers when and to what extent they acquire rights to which remuneration.The Supreme Court has now confirmed this view.As per the Supreme Court’s decision;Affected Lyconet contracts are invalid and consumers can demand a full refund of the payments they have made.Lyoness, aka Lyconet, Cashback World and myWorld, is owned and operated by Austrian national Hubert Freidl (below).Austrian courts previously finding Lyoness to be a pyramid scheme. A related January 11th article from ORF, the Austrian Broadcasting Corporation, cited “over 400 court cases” in Austria alone.Despite this, Freidl is still a free man.Freidl had Lyoness declare bankruptcy in Europe last November. According to filings Lyoness is $110 million in debt. Whether this was a ploy to avoid paying out victims and/or evading criminal proceedings is unclear. Freidl abandoned his FaceBook profile in July 2023. November 2023 posts on Freidl’s Instagram page reveal attempts at marketing Lyoness across Asia, specifically Malaysia.#CryptoScamAwareness #Lyoness #Lyconet #ponzischeme #CryptoScamExposed

There I said it and I stand by it. Meme coins are just a fun Pozi scheme.

Why:

The nature of meme coins, Meme coins are in other words coins made as a joke. The whole point of buying this coin/token is to hopefully be able to dump these tokens on someone else for some profit. Thats IT. When you buy a meme coin your someone else's liquidity. You buy a meme coin not because you think the coin will have a use case in the future but because you think you can dump it on another guy. And that guy thinks he can dump it on another guy, etc, etc. All until the guy doesn't have anyone to sell the coin to and the price plummets. I just described a Ponzi.

Why do people buy meme coins in the first place? Well because they see people posting 100000000% gains. You get greedy so when some random guy on Twitter tells you that X coin will flip eth you drop your whole bag in. Then either 2 things happen. A) Coin gets rugged you sad. B) Coin goes up! Your in the green but instead of selling you and others start shilling the coin everywhere hoping to pump more! You get stuck in an echo chamber. Fuel ends and you're holding the bag. You are sad.

The difference between meme coins and other coins is well other coins have actual use cases. You buy other coins, yes because you think you can sell it for more but chances are you believe in the coins tech's future success so it will reach your desired price.

Meme coin = Pure hype

Other coins = You believe in the success of the tech

So TLDR: Every time you buy a meme coin, your hoping you can sell it to someone else for more. But chances are once you hear about the coin its already at or close to the peak. DYOR as always and always assume meme coins will go to 0. As the majority do.

#Meme #memecoins #ponzischeme #ponzi #dyor

Evorich Ponzi founder Andrey Khovratov has been sentenced to five years in prison. Prosecutors had asked the court for a six year sentence.Following his arrest attempting to flee Russia in early 2022, Khovratov was charged with five counts of participating in fraud via organized crime.As per a January 23rd press-release from the Presnesnky Prosecutor’s Office, the Moscow court based Khovratov’s guilty verdict on EvoRich being a Ponzi scheme. Khovratov, being the general director of Academy of Private Investor LLC, together with an accomplice who is on the wanted list and other unidentified persons, created a website accessible to an unlimited number of people, informing that anyone can become a co-owner, shareholder, shareholder, shareholder of the global an investment fund operating in all segments and sectors of the investment market.The accomplices misled users of the Internet resource by providing deliberately false information that the investments would make it possible to implement the program of the New Economic Evolution of the World, created by Khovratov, and to receive high investment income.In order to make a profit, the misled victims purchased cryptocurrency from the defendants, transferring funds to accounts controlled by them.The members of the organized group distributed the funds received from the victims among themselves, evading their obligations to pay dividend income from investing in cryptocurrency, as well as to return the funds.An unnamed accomplice of Khovratov’s remains wanted by Russian authorities.#Evorich #ponzischeme #mlm #pyramidscheme #CryptoScamExposed