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class="vector-toc-numb">2</span> <span>Red flags</span> </div> </a> <ul id="toc-Red_flags-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Methods" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Methods"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Methods</span> </div> </a> <ul id="toc-Methods-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Unraveling" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Unraveling"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Unraveling</span> </div> </a> <ul id="toc-Unraveling-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Similar_schemes" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Similar_schemes"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Similar schemes</span> </div> </a> <button aria-controls="toc-Similar_schemes-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Similar schemes subsection</span> </button> <ul id="toc-Similar_schemes-sublist" class="vector-toc-list"> <li id="toc-Pyramid_scheme" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Pyramid_scheme"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1</span> <span>Pyramid scheme</span> </div> </a> <ul id="toc-Pyramid_scheme-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Cryptocurrency_Ponzi" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Cryptocurrency_Ponzi"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.2</span> <span>Cryptocurrency Ponzi</span> </div> </a> <ul id="toc-Cryptocurrency_Ponzi-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Economic_bubble" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Economic_bubble"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.3</span> <span>Economic bubble</span> </div> </a> <ul id="toc-Economic_bubble-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Exit_scam" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Exit_scam"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.4</span> <span>Exit scam</span> </div> </a> <ul id="toc-Exit_scam-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Related_concepts" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Related_concepts"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Related concepts</span> </div> </a> <button aria-controls="toc-Related_concepts-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Related concepts subsection</span> </button> <ul id="toc-Related_concepts-sublist" class="vector-toc-list"> <li id="toc-Ponzi_finance" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Ponzi_finance"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.1</span> <span>Ponzi finance</span> </div> </a> <ul id="toc-Ponzi_finance-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Ponzi_game" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Ponzi_game"> <div class="vector-toc-text"> <span class="vector-toc-numb">6.2</span> <span>Ponzi game</span> </div> </a> <ul id="toc-Ponzi_game-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Notes,_references_and_sources" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Notes,_references_and_sources"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>Notes, references and sources</span> </div> </a> <button aria-controls="toc-Notes,_references_and_sources-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Notes, references and sources subsection</span> </button> <ul id="toc-Notes,_references_and_sources-sublist" class="vector-toc-list"> <li id="toc-Notes" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Notes"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.1</span> <span>Notes</span> </div> </a> <ul id="toc-Notes-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.2</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Sources" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Sources"> <div class="vector-toc-text"> <span class="vector-toc-numb">8.3</span> <span>Sources</span> </div> </a> <ul id="toc-Sources-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Ponzi scheme</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 57 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-57" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">57 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-af mw-list-item"><a href="https://af.wikipedia.org/wiki/Ponzi-skema" title="Ponzi-skema – Afrikaans" lang="af" hreflang="af" data-title="Ponzi-skema" data-language-autonym="Afrikaans" data-language-local-name="Afrikaans" class="interlanguage-link-target"><span>Afrikaans</span></a></li><li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D8%B3%D9%84%D8%B3%D9%84%D8%A9_%D8%A8%D9%88%D9%86%D8%B2%D9%8A" title="سلسلة بونزي – Arabic" lang="ar" hreflang="ar" data-title="سلسلة بونزي" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-az mw-list-item"><a href="https://az.wikipedia.org/wiki/Maliyy%C9%99_piramidas%C4%B1" title="Maliyyə piramidası – Azerbaijani" lang="az" hreflang="az" data-title="Maliyyə piramidası" data-language-autonym="Azərbaycanca" data-language-local-name="Azerbaijani" class="interlanguage-link-target"><span>Azərbaycanca</span></a></li><li class="interlanguage-link interwiki-bn mw-list-item"><a href="https://bn.wikipedia.org/wiki/%E0%A6%AA%E0%A6%A8%E0%A6%9C%E0%A6%BF_%E0%A6%B8%E0%A7%8D%E0%A6%95%E0%A6%BF%E0%A6%AE" title="পনজি স্কিম – Bangla" lang="bn" hreflang="bn" data-title="পনজি স্কিম" data-language-autonym="বাংলা" data-language-local-name="Bangla" class="interlanguage-link-target"><span>বাংলা</span></a></li><li class="interlanguage-link interwiki-bg mw-list-item"><a href="https://bg.wikipedia.org/wiki/%D0%A1%D1%85%D0%B5%D0%BC%D0%B0_%D0%BD%D0%B0_%D0%9F%D0%BE%D0%BD%D1%86%D0%B8" title="Схема на Понци – Bulgarian" lang="bg" hreflang="bg" data-title="Схема на Понци" data-language-autonym="Български" data-language-local-name="Bulgarian" class="interlanguage-link-target"><span>Български</span></a></li><li class="interlanguage-link interwiki-ca mw-list-item"><a href="https://ca.wikipedia.org/wiki/Sistema_de_Ponzi" title="Sistema de Ponzi – Catalan" lang="ca" hreflang="ca" data-title="Sistema de Ponzi" data-language-autonym="Català" data-language-local-name="Catalan" class="interlanguage-link-target"><span>Català</span></a></li><li class="interlanguage-link interwiki-cs mw-list-item"><a href="https://cs.wikipedia.org/wiki/Ponziho_sch%C3%A9ma" title="Ponziho schéma – Czech" lang="cs" hreflang="cs" data-title="Ponziho schéma" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Ponzisvindel" title="Ponzisvindel – Danish" lang="da" hreflang="da" data-title="Ponzisvindel" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-el mw-list-item"><a href="https://el.wikipedia.org/wiki/%CE%A3%CF%87%CE%AE%CE%BC%CE%B1_%CE%A0%CF%8C%CE%BD%CF%84%CF%83%CE%B9" title="Σχήμα Πόντσι – Greek" lang="el" hreflang="el" data-title="Σχήμα Πόντσι" data-language-autonym="Ελληνικά" data-language-local-name="Greek" class="interlanguage-link-target"><span>Ελληνικά</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Esquema_Ponzi" title="Esquema Ponzi – Spanish" lang="es" hreflang="es" data-title="Esquema Ponzi" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eo mw-list-item"><a href="https://eo.wikipedia.org/wiki/Skemo_Ponzi" title="Skemo Ponzi – Esperanto" lang="eo" hreflang="eo" data-title="Skemo Ponzi" data-language-autonym="Esperanto" data-language-local-name="Esperanto" class="interlanguage-link-target"><span>Esperanto</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D8%AA%D8%B1%D9%81%D9%86%D8%AF_%D9%BE%D8%A7%D9%86%D8%B2%DB%8C" title="ترفند پانزی – Persian" lang="fa" hreflang="fa" data-title="ترفند پانزی" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Syst%C3%A8me_de_Ponzi" title="Système de Ponzi – French" lang="fr" hreflang="fr" data-title="Système de Ponzi" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-fy mw-list-item"><a href="https://fy.wikipedia.org/wiki/Ponzifraude" title="Ponzifraude – Western Frisian" lang="fy" hreflang="fy" data-title="Ponzifraude" data-language-autonym="Frysk" data-language-local-name="Western Frisian" class="interlanguage-link-target"><span>Frysk</span></a></li><li class="interlanguage-link interwiki-gl mw-list-item"><a href="https://gl.wikipedia.org/wiki/Esquema_Ponzi" title="Esquema Ponzi – Galician" lang="gl" hreflang="gl" data-title="Esquema Ponzi" data-language-autonym="Galego" data-language-local-name="Galician" class="interlanguage-link-target"><span>Galego</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%ED%8F%B0%EC%A7%80_%EC%82%AC%EA%B8%B0" title="폰지 사기 – Korean" lang="ko" hreflang="ko" data-title="폰지 사기" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-hy mw-list-item"><a href="https://hy.wikipedia.org/wiki/%D5%96%D5%AB%D5%B6%D5%A1%D5%B6%D5%BD%D5%A1%D5%AF%D5%A1%D5%B6_%D5%A2%D5%B8%D6%82%D6%80%D5%A3" title="Ֆինանսական բուրգ – Armenian" lang="hy" hreflang="hy" data-title="Ֆինանսական բուրգ" data-language-autonym="Հայերեն" data-language-local-name="Armenian" class="interlanguage-link-target"><span>Հայերեն</span></a></li><li class="interlanguage-link interwiki-hr mw-list-item"><a href="https://hr.wikipedia.org/wiki/Ponzijeva_shema" title="Ponzijeva shema – Croatian" lang="hr" hreflang="hr" data-title="Ponzijeva shema" data-language-autonym="Hrvatski" data-language-local-name="Croatian" class="interlanguage-link-target"><span>Hrvatski</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Skema_Ponzi" title="Skema Ponzi – Indonesian" lang="id" hreflang="id" data-title="Skema Ponzi" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Schema_Ponzi" title="Schema Ponzi – Italian" lang="it" hreflang="it" data-title="Schema Ponzi" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-he mw-list-item"><a href="https://he.wikipedia.org/wiki/%D7%94%D7%95%D7%A0%D7%90%D7%AA_%D7%A4%D7%95%D7%A0%D7%96%D7%99" title="הונאת פונזי – Hebrew" lang="he" hreflang="he" data-title="הונאת פונזי" data-language-autonym="עברית" data-language-local-name="Hebrew" class="interlanguage-link-target"><span>עברית</span></a></li><li class="interlanguage-link interwiki-ka mw-list-item"><a href="https://ka.wikipedia.org/wiki/%E1%83%9E%E1%83%9D%E1%83%9C%E1%83%AA%E1%83%98%E1%83%A1_%E1%83%A1%E1%83%A5%E1%83%94%E1%83%9B%E1%83%90" title="პონცის სქემა – Georgian" lang="ka" hreflang="ka" data-title="პონცის სქემა" data-language-autonym="ქართული" data-language-local-name="Georgian" class="interlanguage-link-target"><span>ქართული</span></a></li><li class="interlanguage-link interwiki-lv mw-list-item"><a href="https://lv.wikipedia.org/wiki/Ponci_sh%C4%93ma" title="Ponci shēma – Latvian" lang="lv" hreflang="lv" data-title="Ponci shēma" data-language-autonym="Latviešu" data-language-local-name="Latvian" class="interlanguage-link-target"><span>Latviešu</span></a></li><li class="interlanguage-link interwiki-hu mw-list-item"><a href="https://hu.wikipedia.org/wiki/Ponzi-rendszer" title="Ponzi-rendszer – Hungarian" lang="hu" hreflang="hu" data-title="Ponzi-rendszer" data-language-autonym="Magyar" data-language-local-name="Hungarian" class="interlanguage-link-target"><span>Magyar</span></a></li><li class="interlanguage-link interwiki-mk mw-list-item"><a href="https://mk.wikipedia.org/wiki/%D0%9F%D0%B8%D1%80%D0%B0%D0%BC%D0%B8%D0%B4%D0%B0%D0%BB%D0%BD%D0%B0_%D0%B8%D0%B7%D0%BC%D0%B0%D0%BC%D0%B0" title="Пирамидална измама – Macedonian" lang="mk" hreflang="mk" data-title="Пирамидална измама" data-language-autonym="Македонски" data-language-local-name="Macedonian" class="interlanguage-link-target"><span>Македонски</span></a></li><li class="interlanguage-link interwiki-arz mw-list-item"><a href="https://arz.wikipedia.org/wiki/%D9%85%D8%B4%D8%B1%D9%88%D8%B9_%D9%BE%D9%88%D9%86%D8%B2%D9%89" title="مشروع پونزى – Egyptian Arabic" lang="arz" hreflang="arz" data-title="مشروع پونزى" data-language-autonym="مصرى" data-language-local-name="Egyptian Arabic" class="interlanguage-link-target"><span>مصرى</span></a></li><li class="interlanguage-link interwiki-ms mw-list-item"><a href="https://ms.wikipedia.org/wiki/Skim_Ponzi" title="Skim Ponzi – Malay" lang="ms" hreflang="ms" data-title="Skim Ponzi" data-language-autonym="Bahasa Melayu" data-language-local-name="Malay" class="interlanguage-link-target"><span>Bahasa Melayu</span></a></li><li class="interlanguage-link interwiki-my mw-list-item"><a href="https://my.wikipedia.org/wiki/%E1%80%95%E1%80%BD%E1%80%94%E1%80%BA%E1%80%87%E1%80%AE%E1%80%85%E1%80%94%E1%80%85%E1%80%BA" title="ပွန်ဇီစနစ် – Burmese" lang="my" hreflang="my" data-title="ပွန်ဇီစနစ်" data-language-autonym="မြန်မာဘာသာ" data-language-local-name="Burmese" class="interlanguage-link-target"><span>မြန်မာဘာသာ</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Ponzifraude" title="Ponzifraude – Dutch" lang="nl" hreflang="nl" data-title="Ponzifraude" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E3%83%9D%E3%83%B3%E3%82%B8%E3%83%BB%E3%82%B9%E3%82%AD%E3%83%BC%E3%83%A0" title="ポンジ・スキーム – Japanese" lang="ja" hreflang="ja" data-title="ポンジ・スキーム" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Ponzi-svindel" title="Ponzi-svindel – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Ponzi-svindel" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk bokmål</span></a></li><li class="interlanguage-link interwiki-uz mw-list-item"><a href="https://uz.wikipedia.org/wiki/Moliyaviy_piramida" title="Moliyaviy piramida – Uzbek" lang="uz" hreflang="uz" data-title="Moliyaviy piramida" data-language-autonym="Oʻzbekcha / ўзбекча" data-language-local-name="Uzbek" class="interlanguage-link-target"><span>Oʻzbekcha / ўзбекча</span></a></li><li class="interlanguage-link interwiki-pa mw-list-item"><a href="https://pa.wikipedia.org/wiki/%E0%A8%AA%E0%A9%8B%E0%A8%82%E0%A8%9C%E0%A8%BC%E0%A9%80_%E0%A8%B8%E0%A8%95%E0%A9%80%E0%A8%AE" title="ਪੋਂਜ਼ੀ ਸਕੀਮ – Punjabi" lang="pa" hreflang="pa" data-title="ਪੋਂਜ਼ੀ ਸਕੀਮ" data-language-autonym="ਪੰਜਾਬੀ" data-language-local-name="Punjabi" class="interlanguage-link-target"><span>ਪੰਜਾਬੀ</span></a></li><li class="interlanguage-link interwiki-pnb mw-list-item"><a href="https://pnb.wikipedia.org/wiki/%D9%BE%D9%88%D9%86%D8%B2%DB%8C_%D8%A7%D8%B3%DA%A9%DB%8C%D9%85" title="پونزی اسکیم – Western Punjabi" lang="pnb" hreflang="pnb" data-title="پونزی اسکیم" data-language-autonym="پنجابی" data-language-local-name="Western Punjabi" class="interlanguage-link-target"><span>پنجابی</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Piramida_finansowa" title="Piramida finansowa – Polish" lang="pl" hreflang="pl" data-title="Piramida finansowa" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Esquema_Ponzi" title="Esquema Ponzi – Portuguese" lang="pt" hreflang="pt" data-title="Esquema Ponzi" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ro mw-list-item"><a href="https://ro.wikipedia.org/wiki/Schem%C4%83_Ponzi" title="Schemă Ponzi – Romanian" lang="ro" hreflang="ro" data-title="Schemă Ponzi" data-language-autonym="Română" data-language-local-name="Romanian" class="interlanguage-link-target"><span>Română</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%A4%D0%B8%D0%BD%D0%B0%D0%BD%D1%81%D0%BE%D0%B2%D0%B0%D1%8F_%D0%BF%D0%B8%D1%80%D0%B0%D0%BC%D0%B8%D0%B4%D0%B0" title="Финансовая пирамида – Russian" lang="ru" hreflang="ru" data-title="Финансовая пирамида" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-sq mw-list-item"><a href="https://sq.wikipedia.org/wiki/Skema_Ponzi" title="Skema Ponzi – Albanian" lang="sq" hreflang="sq" data-title="Skema Ponzi" data-language-autonym="Shqip" data-language-local-name="Albanian" class="interlanguage-link-target"><span>Shqip</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Ponzi_scheme" title="Ponzi scheme – Simple English" lang="en-simple" hreflang="en-simple" data-title="Ponzi scheme" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-sk mw-list-item"><a href="https://sk.wikipedia.org/wiki/Ponziho_sch%C3%A9ma" title="Ponziho schéma – Slovak" lang="sk" hreflang="sk" data-title="Ponziho schéma" data-language-autonym="Slovenčina" data-language-local-name="Slovak" class="interlanguage-link-target"><span>Slovenčina</span></a></li><li class="interlanguage-link interwiki-sl mw-list-item"><a href="https://sl.wikipedia.org/wiki/Ponzijeva_shema" title="Ponzijeva shema – Slovenian" lang="sl" hreflang="sl" data-title="Ponzijeva shema" data-language-autonym="Slovenščina" data-language-local-name="Slovenian" class="interlanguage-link-target"><span>Slovenščina</span></a></li><li class="interlanguage-link interwiki-sr mw-list-item"><a href="https://sr.wikipedia.org/wiki/%D0%9F%D0%BE%D0%BD%D1%86%D0%B8%D1%98%D0%B5%D0%B2%D0%B0_%D0%BF%D1%80%D0%B5%D0%B2%D0%B0%D1%80%D0%B0" title="Понцијева превара – Serbian" lang="sr" hreflang="sr" data-title="Понцијева превара" data-language-autonym="Српски / srpski" data-language-local-name="Serbian" class="interlanguage-link-target"><span>Српски / srpski</span></a></li><li class="interlanguage-link interwiki-sh mw-list-item"><a href="https://sh.wikipedia.org/wiki/Poncijeva_%C5%A1ema" title="Poncijeva šema – Serbo-Croatian" lang="sh" hreflang="sh" data-title="Poncijeva šema" data-language-autonym="Srpskohrvatski / српскохрватски" data-language-local-name="Serbo-Croatian" class="interlanguage-link-target"><span>Srpskohrvatski / српскохрватски</span></a></li><li class="interlanguage-link interwiki-fi mw-list-item"><a href="https://fi.wikipedia.org/wiki/Ponzi-huijaus" title="Ponzi-huijaus – Finnish" lang="fi" hreflang="fi" data-title="Ponzi-huijaus" data-language-autonym="Suomi" data-language-local-name="Finnish" class="interlanguage-link-target"><span>Suomi</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Ponzibedr%C3%A4geri" title="Ponzibedrägeri – Swedish" lang="sv" hreflang="sv" data-title="Ponzibedrägeri" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-ta mw-list-item"><a href="https://ta.wikipedia.org/wiki/%E0%AE%AA%E0%AF%8A%E0%AE%A9%E0%AF%8D%E0%AE%9A%E0%AE%BF_%E0%AE%AE%E0%AF%81%E0%AE%B1%E0%AF%88%E0%AE%AE%E0%AF%88" title="பொன்சி முறைமை – Tamil" lang="ta" hreflang="ta" data-title="பொன்சி முறைமை" data-language-autonym="தமிழ்" data-language-local-name="Tamil" class="interlanguage-link-target"><span>தமிழ்</span></a></li><li class="interlanguage-link interwiki-th mw-list-item"><a href="https://th.wikipedia.org/wiki/%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%89%E0%B9%89%E0%B8%AD%E0%B8%89%E0%B8%A5%E0%B9%81%E0%B8%9A%E0%B8%9A%E0%B8%9E%E0%B8%AD%E0%B8%99%E0%B8%8B%E0%B8%B5" title="การฉ้อฉลแบบพอนซี – Thai" lang="th" hreflang="th" data-title="การฉ้อฉลแบบพอนซี" data-language-autonym="ไทย" data-language-local-name="Thai" class="interlanguage-link-target"><span>ไทย</span></a></li><li class="interlanguage-link interwiki-tg mw-list-item"><a href="https://tg.wikipedia.org/wiki/%D0%9F%D0%B8%D1%80%D0%B0%D0%BC%D0%B8%D0%B4%D0%B0%D0%B8_%D0%BC%D0%BE%D0%BB%D0%B8%D1%8F%D0%B2%D3%A3" title="Пирамидаи молиявӣ – Tajik" lang="tg" hreflang="tg" data-title="Пирамидаи молиявӣ" data-language-autonym="Тоҷикӣ" data-language-local-name="Tajik" class="interlanguage-link-target"><span>Тоҷикӣ</span></a></li><li class="interlanguage-link interwiki-tr mw-list-item"><a href="https://tr.wikipedia.org/wiki/Ponzi_%C5%9Femas%C4%B1" title="Ponzi şeması – Turkish" lang="tr" hreflang="tr" data-title="Ponzi şeması" data-language-autonym="Türkçe" data-language-local-name="Turkish" class="interlanguage-link-target"><span>Türkçe</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%A4%D1%96%D0%BD%D0%B0%D0%BD%D1%81%D0%BE%D0%B2%D0%B0_%D0%BF%D1%96%D1%80%D0%B0%D0%BC%D1%96%D0%B4%D0%B0" title="Фінансова піраміда – Ukrainian" lang="uk" hreflang="uk" data-title="Фінансова піраміда" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-ur mw-list-item"><a href="https://ur.wikipedia.org/wiki/%D9%BE%D9%88%D9%86%D8%B2%DB%8C_%D8%A7%D8%B3%DA%A9%DB%8C%D9%85" title="پونزی اسکیم – Urdu" lang="ur" hreflang="ur" data-title="پونزی اسکیم" data-language-autonym="اردو" data-language-local-name="Urdu" class="interlanguage-link-target"><span>اردو</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/M%C3%B4_h%C3%ACnh_Ponzi" title="Mô hình Ponzi – Vietnamese" lang="vi" hreflang="vi" data-title="Mô hình Ponzi" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li><li class="interlanguage-link interwiki-war mw-list-item"><a href="https://war.wikipedia.org/wiki/Iskima_Ponzi" title="Iskima Ponzi – Waray" lang="war" hreflang="war" data-title="Iskima Ponzi" data-language-autonym="Winaray" data-language-local-name="Waray" class="interlanguage-link-target"><span>Winaray</span></a></li><li class="interlanguage-link interwiki-wuu mw-list-item"><a href="https://wuu.wikipedia.org/wiki/%E8%80%81%E9%BC%A0%E4%BC%9A" title="老鼠会 – Wu" lang="wuu" hreflang="wuu" data-title="老鼠会" data-language-autonym="吴语" data-language-local-name="Wu" class="interlanguage-link-target"><span>吴语</span></a></li><li class="interlanguage-link interwiki-zh-yue mw-list-item"><a href="https://zh-yue.wikipedia.org/wiki/%E9%BE%90%E6%B0%8F%E9%A8%99%E5%B1%80" title="龐氏騙局 – Cantonese" lang="yue" hreflang="yue" data-title="龐氏騙局" data-language-autonym="粵語" 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.hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">For schemes that promise rewards based on enrolling ever larger numbers of people, see <a href="/wiki/Pyramid_scheme" title="Pyramid scheme">Pyramid scheme</a>.</div> <p class="mw-empty-elt"> </p> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:Charles_Ponzi.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/66/Charles_Ponzi.jpg/220px-Charles_Ponzi.jpg" decoding="async" width="220" height="132" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/66/Charles_Ponzi.jpg/330px-Charles_Ponzi.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/66/Charles_Ponzi.jpg/440px-Charles_Ponzi.jpg 2x" data-file-width="600" data-file-height="360" /></a><figcaption><a href="/wiki/Charles_Ponzi" title="Charles Ponzi">Charles Ponzi</a>, the namesake of the scheme, in 1920</figcaption></figure> <p>A <b>Ponzi scheme</b> (<span class="rt-commentedText nowrap"><span class="IPA nopopups noexcerpt" lang="en-fonipa"><a href="/wiki/Help:IPA/English" title="Help:IPA/English">/<span style="border-bottom:1px dotted"><span title="/ˈ/: primary stress follows">ˈ</span><span title="'p' in 'pie'">p</span><span title="/ɒ/: 'o' in 'body'">ɒ</span><span title="'n' in 'nigh'">n</span><span title="'z' in 'zoom'">z</span><span title="/i/: 'y' in 'happy'">i</span></span>/</a></span></span>, <style data-mw-deduplicate="TemplateStyles:r1177148991">.mw-parser-output .IPA-label-small{font-size:85%}.mw-parser-output .references .IPA-label-small,.mw-parser-output .infobox .IPA-label-small,.mw-parser-output .navbox .IPA-label-small{font-size:100%}</style><span class="IPA-label IPA-label-small">Italian:</span> <span class="IPA nowrap" lang="it-Latn-fonipa"><a href="/wiki/Help:IPA/Italian" title="Help:IPA/Italian">[ˈpontsi]</a></span>) is a form of <a href="/wiki/Fraud" title="Fraud">fraud</a> that lures <a href="/wiki/Investor" title="Investor">investors</a> and pays <a href="/wiki/Profit_(accounting)" title="Profit (accounting)">profits</a> to earlier investors with <a href="/wiki/Funding" title="Funding">funds</a> from more recent investors.<sup id="cite_ref-Investor.gov_1-0" class="reference"><a href="#cite_note-Investor.gov-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> Named after <a href="/wiki/Italians" title="Italians">Italian</a> businessman <a href="/wiki/Charles_Ponzi" title="Charles Ponzi">Charles Ponzi</a>, this type of scheme misleads investors by either falsely suggesting that profits are derived from legitimate business activities (whereas the business activities are non-existent), or by exaggerating the extent and profitability of the legitimate business activities, leveraging new investments to fabricate or supplement these profits. A Ponzi scheme can maintain the illusion of a sustainable business as long as investors continue to contribute new funds, and as long as most of the investors do not demand full repayment or lose faith in the non-existent assets they are purported to own. </p><p>Some of the first recorded incidents to meet the modern definition of the Ponzi scheme were carried out from 1869 to 1872 by <a href="/wiki/Adele_Spitzeder" title="Adele Spitzeder">Adele Spitzeder</a> in <a href="/wiki/German_Empire" title="German Empire">Germany</a> and by <a href="/wiki/Sarah_Howe_(fraudster)" title="Sarah Howe (fraudster)">Sarah Howe</a> in the United States in the 1880s through the "Ladies' Deposit". Howe offered a solely female clientele an 8% monthly <a href="/wiki/Interest_rate" title="Interest rate">interest rate</a> and then stole the money that the women had invested. She was eventually discovered and served three years in prison.<sup id="cite_ref-zuckoff2005_2-0" class="reference"><a href="#cite_note-zuckoff2005-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> The Ponzi scheme was also previously described in novels; <a href="/wiki/Charles_Dickens" title="Charles Dickens">Charles Dickens</a>'s 1844 novel <i><a href="/wiki/Martin_Chuzzlewit" title="Martin Chuzzlewit">Martin Chuzzlewit</a></i> and his 1857 novel <i><a href="/wiki/Little_Dorrit" title="Little Dorrit">Little Dorrit</a></i> both feature such a scheme.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>In the 1920s, <a href="/wiki/Charles_Ponzi" title="Charles Ponzi">Charles Ponzi</a> carried out this scheme and became well known throughout the United States because of the huge amount of money that he took in.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> His original scheme was purportedly based on the legitimate <a href="/wiki/Arbitrage" title="Arbitrage">arbitrage</a> of <a href="/wiki/International_reply_coupon" title="International reply coupon">international reply coupons</a> for postage stamps, but he soon began diverting new investors' money to make payments to earlier investors and to himself.<sup id="cite_ref-ponzi_5-0" class="reference"><a href="#cite_note-ponzi-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> Unlike earlier similar schemes, Ponzi's gained considerable press coverage both within the United States and internationally both while it was being perpetrated and after it collapsed – this notoriety eventually led to the type of scheme being named after him.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Characteristics">Characteristics</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=1" title="Edit section: Characteristics"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In a Ponzi scheme, a <a href="/wiki/Con_artist" class="mw-redirect" title="Con artist">con artist</a> offers <a href="/wiki/Investment" title="Investment">investments</a> that promise very high returns with little or no risk to an investor. The returns are said to originate from a business or a secret idea run by the con artist. In reality, the business does not exist or the idea does not work in the way it is described or the extent of returns is made up or exaggerated. The con artist pays the high returns promised to their earlier investors by using the money obtained from later investors. Instead of engaging in a legitimate business activity, the con artist attempts to attract new investors to make the payments that were promised to earlier investors.<sup id="cite_ref-FOOTNOTEDeasonRajgopalWaymire20152_7-0" class="reference"><a href="#cite_note-FOOTNOTEDeasonRajgopalWaymire20152-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTEFrankel20123–4_8-0" class="reference"><a href="#cite_note-FOOTNOTEFrankel20123–4-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTELewis20166_9-0" class="reference"><a href="#cite_note-FOOTNOTELewis20166-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTEU.S._Securities_and_Exchange_Commission20131_10-0" class="reference"><a href="#cite_note-FOOTNOTEU.S._Securities_and_Exchange_Commission20131-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> The operator of the scheme also diverts clients' funds for the operator's personal use.<sup id="cite_ref-FOOTNOTELewis20166_9-1" class="reference"><a href="#cite_note-FOOTNOTELewis20166-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTEU.S._Securities_and_Exchange_Commission20131_10-1" class="reference"><a href="#cite_note-FOOTNOTEU.S._Securities_and_Exchange_Commission20131-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> </p><p>With little or no legitimate earnings, Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors, or when large numbers of existing investors cash out, these schemes collapse.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>a<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Investor.gov_1-1" class="reference"><a href="#cite_note-Investor.gov-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTEFrankel201210_11-1" class="reference"><a href="#cite_note-FOOTNOTEFrankel201210-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTELewis20166–7_13-0" class="reference"><a href="#cite_note-FOOTNOTELewis20166–7-13"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> As a result, most investors end up losing much or all of the money they invested.<sup id="cite_ref-FOOTNOTEFrankel201210_11-2" class="reference"><a href="#cite_note-FOOTNOTEFrankel201210-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> In some cases, the operator of the scheme may simply disappear with the money.<sup id="cite_ref-FOOTNOTELewis20168_14-0" class="reference"><a href="#cite_note-FOOTNOTELewis20168-14"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Red_flags">Red flags</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=2" title="Edit section: Red flags"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>According to the <a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">U.S. Securities and Exchange Commission</a> (SEC), many Ponzi schemes share characteristics that should be "<a href="/wiki/Red_flag_(idiom)" title="Red flag (idiom)">red flags</a>" for investors.<sup id="cite_ref-Investor.gov_1-2" class="reference"><a href="#cite_note-Investor.gov-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> </p> <ul><li><b>High investment returns with little or no risk</b>.<sup id="cite_ref-FOOTNOTEFrankel201222–25_15-0" class="reference"><a href="#cite_note-FOOTNOTEFrankel201222–25-15"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTELewis201628–29_16-0" class="reference"><a href="#cite_note-FOOTNOTELewis201628–29-16"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTESpringer2021297_17-0" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297-17"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> Every investment carries some degree of <a href="/wiki/Equity_risk" title="Equity risk">risk</a>,<sup id="cite_ref-FOOTNOTESpringer2021297_17-1" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297-17"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> and investments yielding higher returns typically involve more risk. Any "guaranteed" investment opportunity should be considered suspect.</li> <li><b>Overly consistent returns</b>.<sup id="cite_ref-FOOTNOTELewis201630_18-0" class="reference"><a href="#cite_note-FOOTNOTELewis201630-18"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-FOOTNOTESpringer2021129_19-0" class="reference"><a href="#cite_note-FOOTNOTESpringer2021129-19"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Investment values tend to go up and down over time, especially those offering potentially high returns. An investment that continues to generate regular positive returns regardless of overall market conditions is considered suspicious.</li> <li><b>Unregistered investments</b>.<sup id="cite_ref-FOOTNOTESpringer2021297–298_20-0" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297–298-20"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> Ponzi schemes typically involve investments that have not been registered with <a href="/wiki/Financial_regulators" class="mw-redirect" title="Financial regulators">financial regulators</a> (like the <a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">SEC</a> or the <a href="/wiki/Financial_Conduct_Authority" title="Financial Conduct Authority">FCA</a>). Registration is important because it provides investors with access to key information about the company's management, products, services, and finances.</li> <li><b>Unlicensed sellers</b>.<sup id="cite_ref-FOOTNOTESpringer2021297–299_21-0" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297–299-21"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> In the <a href="/wiki/United_States" title="United States">United States</a>, federal and state securities laws require that investment professionals and their firms be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.</li> <li><b>Secretive or complex strategies</b>.<sup id="cite_ref-FOOTNOTESpringer2021297_17-2" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297-17"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> Investments that cannot be understood or on which no complete information can be found or obtained are considered suspicious.</li> <li><b>Issues with paperwork</b>. Account statement errors may be a sign that funds are not being invested as promised.</li> <li><b>Difficulty receiving payments</b>. Investors should be suspicious of cases where they don't receive a payment or have difficulty cashing out. Ponzi scheme promoters sometimes try to prevent participants from cashing out by offering even higher returns for staying put.</li></ul> <p>According to criminologist Marie Springer, the following red flags can also be of relevance:<sup id="cite_ref-FOOTNOTESpringer2021297–299_21-1" class="reference"><a href="#cite_note-FOOTNOTESpringer2021297–299-21"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p> <ul><li>The sales personnel or adviser are overly pushy or aggressive (may involve <a href="/wiki/Closing_(sales)" title="Closing (sales)">high-pressure sales</a>).</li> <li>The initial contact took place by a <a href="/wiki/Cold_call" class="mw-redirect" title="Cold call">cold call</a> or through a <a href="/wiki/Social_network" title="Social network">social network</a>, a language-based radio or a <a href="/wiki/Religious_radio" class="mw-redirect" title="Religious radio">religious radio</a> advertisement.</li> <li>The client cannot determine the actual trades or investments that have been carried out.</li> <li>The clients are asked to write checks with a different name than the name of the corporation (such as an individual) or to send checks to a different address than the corporate address.</li> <li>Once the <a href="/wiki/Maturity_date" class="mw-redirect" title="Maturity date">maturity date</a> of their investment arrives, clients are pressured to <a href="/wiki/Rollover_(finance)" class="mw-redirect" title="Rollover (finance)">roll over</a> the principal and the profits.</li></ul> <div class="mw-heading mw-heading2"><h2 id="Methods">Methods</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=3" title="Edit section: Methods"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Typically, Ponzi schemes require an initial investment and promise above-average returns.<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> They use vague verbal guises such as "<a href="/wiki/Hedge_(finance)" title="Hedge (finance)">hedge</a> <a href="/wiki/Futures_contract" title="Futures contract">futures trading</a>", "<a href="/wiki/High-yield_investment_program" title="High-yield investment program">high-yield investment programs</a>", or "<a href="/wiki/Offshore_investment" title="Offshore investment">offshore investment</a>" to describe their income strategy. It is common for the operator to take advantage of a lack of investor knowledge or competence, or sometimes claim to use a proprietary, secret investment strategy to avoid giving information about the scheme. </p> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:Ponzi1920.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Ponzi1920.jpg/220px-Ponzi1920.jpg" decoding="async" width="220" height="285" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Ponzi1920.jpg/330px-Ponzi1920.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Ponzi1920.jpg/440px-Ponzi1920.jpg 2x" data-file-width="538" data-file-height="697" /></a><figcaption>Charles Ponzi</figcaption></figure> <p>The basic premise of a Ponzi scheme is "<a href="/wiki/To_rob_Peter_to_pay_Paul" title="To rob Peter to pay Paul">to rob Peter to pay Paul</a>". Initially, the operator pays high returns to attract investors and entice current investors to invest more money. When other investors begin to participate, a cascade effect begins. The schemer pays a "return" to initial investors from the investments of new participants, rather than from genuine profits. </p><p>Often, high returns encourage investors to leave their money in the scheme, so that the operator does not actually have to pay very much to investors. The operator simply sends statements showing how much they have earned, which maintains the deception that the scheme is an investment with high returns. Investors within a Ponzi scheme may face difficulties when trying to get their money out of the investment. </p><p>Operators also try to minimize withdrawals by offering new plans to investors where money cannot be withdrawn for a certain period of time in exchange for higher returns. The operator sees new cash flows as investors cannot transfer money. If a few investors do wish to withdraw their money in accordance with the terms allowed, their requests are usually promptly processed, which gives the illusion to all other investors that the fund is solvent and financially sound. </p><p>Ponzi schemes sometimes begin as legitimate investment vehicles, such as <a href="/wiki/Hedge_fund" title="Hedge fund">hedge funds</a> that can easily degenerate into a Ponzi-type scheme if they unexpectedly lose money or fail to legitimately earn the returns expected. The operators fabricate false returns or produce fraudulent audit reports instead of admitting their failure to meet expectations, from which point on the operation can be considered a Ponzi scheme. </p><p>A wide variety of investment vehicles and strategies, typically legitimate, have become the basis of Ponzi schemes. For instance, <a href="/wiki/Allen_Stanford" title="Allen Stanford">Allen Stanford</a> used bank <a href="/wiki/Certificate_of_deposit" title="Certificate of deposit">certificates of deposit</a> to defraud tens of thousands of people. Certificates of deposit are usually low-risk and insured instruments, but the Stanford certificates of deposit were fraudulent.<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Unraveling">Unraveling</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=4" title="Edit section: Unraveling"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Theoretically, it is possible for certain Ponzi schemes to ultimately "succeed" financially, at least so long as a Ponzi scheme was not what the promoters were initially intending to operate. For example, a failing hedge fund reporting fraudulent returns could conceivably "make good" its reported numbers, for example by making a successful high-risk investment. Moreover, if the operators of such a scheme are facing the likelihood of imminent collapse accompanied by criminal charges, they may see little additional "risk" to themselves in attempting to cover their tracks by engaging in further illegal acts to try and make good the shortfall (for example, by engaging in <a href="/wiki/Insider_trading" title="Insider trading">insider trading</a>). Especially with investment vehicles like hedge funds that are regulated and monitored less heavily than other investment vehicles such as mutual funds,<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> in the absence of a <a href="/wiki/Whistleblower" class="mw-redirect" title="Whistleblower">whistleblower</a> or accompanying illegal acts, any fraudulent content in reports is often difficult to detect unless and until the investment vehicles ultimately collapse. </p><p>Typically, however, if a Ponzi scheme is not stopped by authorities it usually falls apart for one or more of the following reasons:<sup id="cite_ref-ponzi_5-1" class="reference"><a href="#cite_note-ponzi-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <ol><li>The operator vanishes, taking all the remaining investment money. Promoters who intend to abscond often attempt to do so as returns due to be paid are about to exceed new investments, as this is when the investment capital available will be at its maximum.</li> <li>Since the scheme requires a continual stream of investments to fund higher returns, if the number of new investors slows down, the scheme collapses as the operator can no longer pay the promised returns (the higher the returns, the greater the risk of the Ponzi scheme collapsing). Such <a href="/wiki/Liquidity_crisis" title="Liquidity crisis">liquidity crises</a> often trigger panics, as more people start asking for their money, similar to a <a href="/wiki/Bank_run" title="Bank run">bank run</a>.</li> <li>External market forces, such as a sharp decline in the economy, can often hasten the collapse of a Ponzi scheme (for example, the <a href="/wiki/Madoff_investment_scandal" title="Madoff investment scandal">Madoff investment scandal</a> during the <a href="/wiki/Financial_crisis_of_2007%E2%80%932008" class="mw-redirect" title="Financial crisis of 2007–2008">market downturn of 2008</a>), since they often cause many investors to attempt to withdraw part or all of their funds sooner than they had intended.</li></ol> <p>In some cases, two or more of the aforementioned factors may be at play. For example, news of a police investigation into a Ponzi scheme may cause investors to immediately demand their money, and in turn cause the promoters to flee the jurisdiction sooner than planned (assuming they intended to eventually abscond in the first place), thus causing the scheme to collapse much faster than if the police investigation had simply been permitted to run its course. </p> <div class="mw-heading mw-heading2"><h2 id="Similar_schemes">Similar schemes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=5" title="Edit section: Similar schemes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Pyramid_scheme">Pyramid scheme</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=6" title="Edit section: Pyramid scheme"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A <a href="/wiki/Pyramid_scheme" title="Pyramid scheme">pyramid scheme</a> is a form of fraud similar in some ways to a Ponzi scheme, relying as it does on a mistaken belief in a nonexistent financial reality, including the hope of an extremely high rate of return. However, several characteristics distinguish these schemes from Ponzi schemes:<sup id="cite_ref-ponzi_5-2" class="reference"><a href="#cite_note-ponzi-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <ul><li>In a Ponzi scheme, the schemer acts as a "hub" for the victims, interacting with all of them directly. In a pyramid scheme, those who recruit additional participants benefit directly. Failure to recruit typically means no investment return.</li> <li>A Ponzi scheme claims to rely on some esoteric investment approach, and often attracts well-to-do investors, whereas pyramid schemes explicitly claim that new money will be the source of payout for the initial investments.<sup id="cite_ref-zuckoff2005_2-1" class="reference"><a href="#cite_note-zuckoff2005-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup></li> <li>A pyramid scheme typically collapses much faster because it requires exponential increases in participants to sustain it. By contrast, Ponzi schemes can survive (at least in the short-term) simply by persuading most existing participants to reinvest their money, with a relatively small number of new participants.<sup id="cite_ref-olsson_25-0" class="reference"><a href="#cite_note-olsson-25"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup></li></ul> <div class="mw-heading mw-heading3"><h3 id="Cryptocurrency_Ponzi">Cryptocurrency Ponzi</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=7" title="Edit section: Cryptocurrency Ponzi"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Cryptocurrency" title="Cryptocurrency">Cryptocurrencies</a> have been employed by scammers attempting a new generation of Ponzi schemes. For example, misuse of <a href="/wiki/Initial_coin_offering" title="Initial coin offering">initial coin offerings</a>, or "ICOs", has been one such method,<sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-cryptoatlantic_27-0" class="reference"><a href="#cite_note-cryptoatlantic-27"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> known as "<i>smart Ponzis</i>" per the <i><a href="/wiki/Financial_Times" title="Financial Times">Financial Times</a></i>.<sup id="cite_ref-cryptoft_28-0" class="reference"><a href="#cite_note-cryptoft-28"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> Most schemes have a low recovery rate with investors losing their funds permanently.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> </p><p>The novelty of ICOs means that there is currently a lack of regulatory clarity on the classification of these financial devices, allowing scammers wide leeway to develop Ponzi schemes using these pseudo-assets.<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> Also, the pseudonymity of cryptocurrency transactions and their international nature involving countless jurisdictions in many different countries can make it much more difficult to identify and take legal action (whether civil or criminal) against perpetrators.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> </p><p>The May 2022 collapse of <a href="/wiki/TerraUSD" class="mw-redirect" title="TerraUSD">TerraUSD</a>, a <a href="/wiki/Stablecoin" title="Stablecoin">stablecoin</a> propped up by a complex algorithmic mechanism offering 20% yields, was described as "Ponzinomics" by <a href="/wiki/Wired_(magazine)" title="Wired (magazine)"><i>Wired</i></a>.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> Another example of a well known ponzi scheme involving cryptoassets was the ICO of <i>AriseBank</i> or <i>AriseCoin</i>, involving claims about founding the world's first "decentralized bank". The <a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">SEC</a> successfully recovered the funds stolen in the ICO.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> A similar scheme was perpetrated by the founders of the fraudulent cryptocurrency <a href="/wiki/Bitconnect" title="Bitconnect">Bitconnect</a>.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> </p><p>In September 2022, <a href="/wiki/Jamie_Dimon" title="Jamie Dimon">Jamie Dimon</a>, CEO of JPMorgan, described cryptocurrencies as "Decentralised Ponzi Schemes".<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Economic_bubble">Economic bubble</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=8" title="Edit section: Economic bubble"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Economic_bubble" title="Economic bubble">Economic bubbles</a> are also similar to a Ponzi scheme in that one participant gets paid by contributions from a subsequent participant until inevitable collapse. A bubble involves ever-rising prices in an <a href="/wiki/Open_market" title="Open market">open market</a> (for example <a href="/wiki/Stock_market_bubble" title="Stock market bubble">stock</a>, <a href="/wiki/Real_estate_bubble" class="mw-redirect" title="Real estate bubble">housing</a>, cryptocurrency,<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup><sup class="noprint Inline-Template" style="margin-left:0.1em; white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Please_clarify" title="Wikipedia:Please clarify"><span title="The text near this tag may need clarification or removal of jargon. (June 2018)">clarification needed</span></a></i>]</sup> <a href="/wiki/Tulip_mania" title="Tulip mania">tulip bulbs</a>, or the <a href="/wiki/Mississippi_Company" title="Mississippi Company">Mississippi Company</a>) where prices rise because buyers bid more, and buyers bid more because prices are rising. Bubbles are often said to be based on the <a href="/wiki/Greater_fool_theory" title="Greater fool theory">"greater fool" theory</a>. As with the Ponzi scheme, the price exceeds the <a href="/wiki/Intrinsic_value_(finance)" title="Intrinsic value (finance)">intrinsic value</a> of the item, but unlike the Ponzi scheme: </p> <ul><li>In most economic bubbles, there is no single person or group misrepresenting the intrinsic value. A common exception is a <a href="/wiki/Pump_and_dump" title="Pump and dump">pump and dump</a> scheme (typically involving buyers and holders of thinly-traded stocks), which much more closely resembles a Ponzi scheme than other types of bubbles.</li> <li>Ponzi schemes typically result in criminal charges when authorities discover them but, other than pump and dump schemes, economic bubbles do not typically involve unlawful activity, or even <a href="/wiki/Bad_faith" title="Bad faith">bad faith</a> on the part of any participant. Laws are only broken if someone perpetuates the bubble by knowingly and deliberately misrepresenting facts to inflate the value of an item (as with a pump and dump scheme). Even when this occurs, wrongdoing (and especially criminal activity) is often much more difficult to prove in court compared to a Ponzi scheme. Therefore, the collapse of an economic bubble rarely results in criminal charges (which require proof beyond a <a href="/wiki/Reasonable_doubt" title="Reasonable doubt">reasonable doubt</a> to secure a conviction) and, even when charges are pursued, they are often against corporations, which can be easier to pursue in court compared to charges against people but also can only result in fines as opposed to jail time. The more commonly-pursued legal recourse in situations where someone suspects an economic bubble is the result of nefarious activity is to sue for damages in <a href="/wiki/Lawsuit" title="Lawsuit">civil court</a>, where the standard of proof is only <a href="/wiki/Burden_of_proof_(law)#Preponderance_of_the_evidence" title="Burden of proof (law)">balance of probabilities</a> and where the plaintiff need not demonstrate <i><a href="/wiki/Mens_rea" title="Mens rea">mens rea</a></i>.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (October 2022)">citation needed</span></a></i>]</sup></li> <li>In some jurisdictions<sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Avoid_weasel_words" class="mw-redirect" title="Wikipedia:Avoid weasel words"><span title="The material near this tag possibly uses too vague attribution or weasel words. (February 2020)">which?</span></a></i>]</sup>, following the collapse of a Ponzi scheme, even the "innocent" beneficiaries are liable to repay any gains for distribution to the victims<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2024)">citation needed</span></a></i>]</sup>. In this context, "innocent" beneficiaries can include anyone who unwittingly profited without being aware of the fraudulent nature of the scheme, and even charities to which perpetrators often give to relatively generously while a scheme is in operation in an effort to enhance their own profile and thereby "profit" from the resulting positive media coverage. This typically does not happen in the case of an economic bubble<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2024)">citation needed</span></a></i>]</sup>, especially if nobody can prove the bubble was caused by anyone acting in bad faith, moreover a person whose own participation in an economic bubble is not particularly notable is not likely to enhance participation in the bubble and thus personally profit by donating to charity.</li> <li>Items traded in an economic bubble are much more likely to have an intrinsic value that is worth a substantial proportion of the market price<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2024)">citation needed</span></a></i>]</sup>. Therefore, following collapse of an economic bubble (especially one in a commodity such as real estate) the items affected will often retain some value, whereas an investment that is part of a Ponzi scheme will typically be worthless (or very close to worthless). On the other hand, it is much easier to obtain financing for many items that are the frequent subject of bubbles. If an investor trading on <a href="/wiki/Margin_(finance)" title="Margin (finance)">margin</a> or borrowing to finance investments becomes the victim of a bubble, he or she can still lose all (or a very substantial portion) of his or her investment capital, or even be liable for losses in excess of the original capital investment<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (June 2024)">citation needed</span></a></i>]</sup></li></ul> <div class="mw-heading mw-heading3"><h3 id="Exit_scam">Exit scam</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=9" title="Edit section: Exit scam"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A Ponzi scheme which ultimately terminates with the operator absconding is similar to an <a href="/wiki/Exit_scam" title="Exit scam">exit scam</a>. The main difference is that an exit scam does not involve any sort of investment vehicle with the accompanying promised returns. Instead, exit scammers either accept payment for product which they never ship (usually after gaining a reputation for reliably shipping product) or steal funds held in <a href="/wiki/Escrow" title="Escrow">escrow</a> on behalf of third parties (the latter often involves the operators of illegal <a href="/wiki/Darknet_market" title="Darknet market">darknet markets</a> that facilitate the sale of illicit goods and services). </p> <div class="mw-heading mw-heading2"><h2 id="Related_concepts">Related concepts</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=10" title="Edit section: Related concepts"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Ponzi_finance">Ponzi finance</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=11" title="Edit section: Ponzi finance"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The term "ponzi finance" generally designates non-sustainable patterns of <a href="/wiki/Finance" title="Finance">finance</a>, such as borrowers who can only meet their <a href="/wiki/Debt" title="Debt">debt</a> commitment if they continuously obtain new sources of financing, often at an accelerating pace and/or ever-increasing interest rates until the borrower cannot secure more financing at any interest rate and becomes insolvent. The term was first coined by economist <a href="/wiki/Hyman_Minsky" title="Hyman Minsky">Hyman Minsky</a>.<sup id="cite_ref-FOOTNOTEKindlebergerAliber200528_39-0" class="reference"><a href="#cite_note-FOOTNOTEKindlebergerAliber200528-39"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Ponzi_game">Ponzi game</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=12" title="Edit section: Ponzi game"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In <a href="/wiki/Economics" title="Economics">economics</a>, the term "ponzi game" designates a hypothesis where a government continuously defers the repayment of its <a href="/wiki/Government_debt" title="Government debt">public debt</a> by issuing new debt: each time its existing debt arrives at maturity, it borrows funds from new and/or existing lenders in order to repay its existing debt.<sup id="cite_ref-41" class="reference"><a href="#cite_note-41"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=13" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 16em;"> <ul><li><a href="/wiki/List_of_Ponzi_schemes" title="List of Ponzi schemes">List of Ponzi schemes</a></li> <li><a href="/wiki/Black_Friday_(1869)" title="Black Friday (1869)">Black Friday (1869)</a>, also referred to as the <i>Gold Panic of 1869</i></li> <li><a href="/wiki/Bucket_shop_(stock_market)" title="Bucket shop (stock market)">Bucket shop (stock market)</a></li> <li><a href="/wiki/Chain_letter" title="Chain letter">Chain letter</a></li> <li><a href="/wiki/Football_Index" title="Football Index">Football Index</a></li> <li><a href="/wiki/Gary_Sorenson" title="Gary Sorenson">Gary Sorenson</a></li> <li><a href="/wiki/Get-rich-quick_scheme" title="Get-rich-quick scheme">Get-rich-quick scheme</a></li> <li><a href="/wiki/Matrix_scheme" title="Matrix scheme">Matrix scheme</a></li> <li><a href="/wiki/Minsky_moment" title="Minsky moment">Minsky moment</a></li> <li><a href="/wiki/Money_multiplier" title="Money multiplier">Money multiplier</a></li> <li><a href="/wiki/Non-fungible_token" title="Non-fungible token">Non-fungible token</a></li> <li><a href="/wiki/Saradha_Group_financial_scandal" title="Saradha Group financial scandal">Saradha Group financial scandal</a></li> <li><a href="/wiki/Steven_Hoffenberg" title="Steven Hoffenberg">Steven Hoffenberg</a></li> <li><a href="/wiki/Towers_Financial_Corporation" title="Towers Financial Corporation">Towers Financial Corporation</a></li> <li><a href="/wiki/White-collar_crime" title="White-collar crime">White-collar crime</a></li> <li><a href="/wiki/United_States_Postal_Inspection_Service" title="United States Postal Inspection Service">United States Postal Inspection Service</a></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="Notes,_references_and_sources"><span id="Notes.2C_references_and_sources"></span>Notes, references and sources</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=14" title="Edit section: Notes, references and sources"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Notes">Notes</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=15" title="Edit section: Notes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-lower-alpha"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text">In what <a href="/wiki/Tamar_Frankel" title="Tamar Frankel">Tamar Frankel</a> has called an "inevitable end".<sup id="cite_ref-FOOTNOTEFrankel201210_11-0" class="reference"><a href="#cite_note-FOOTNOTEFrankel201210-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup></span> </li> </ol></div></div> <div class="mw-heading mw-heading3"><h3 id="References">References</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=16" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239543626"><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-Investor.gov-1"><span class="mw-cite-backlink">^ <a href="#cite_ref-Investor.gov_1-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Investor.gov_1-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Investor.gov_1-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme">"Ponzi Scheme"</a>. <i>Investor.gov</i>. <a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">U.S. Securities and Exchange Commission</a><span class="reference-accessdate">. Retrieved <span class="nowrap">9 June</span> 2021</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Investor.gov&rft.atitle=Ponzi+Scheme&rft_id=https%3A%2F%2Fwww.investor.gov%2Fprotect-your-investments%2Ffraud%2Ftypes-fraud%2Fponzi-scheme&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span> <span class="noviewer" typeof="mw:File"><span><img alt="Public Domain" src="//upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/12px-PD-icon.svg.png" decoding="async" width="12" height="12" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/18px-PD-icon.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/24px-PD-icon.svg.png 2x" data-file-width="196" data-file-height="196" /></span></span> This article incorporates <a href="/wiki/Copyright_status_of_works_by_the_federal_government_of_the_United_States" title="Copyright status of works by the federal government of the United States">public domain material</a> from websites or documents of the <a href="/wiki/United_States_Government" class="mw-redirect" title="United States Government">United States Government</a>.</span> </li> <li id="cite_note-zuckoff2005-2"><span class="mw-cite-backlink">^ <a href="#cite_ref-zuckoff2005_2-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-zuckoff2005_2-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">Zuckoff, Mitchell. <i>Ponzi's Scheme: The True Story of a Financial Legend</i>. Random House: New York, 2005. 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Boston/Berlin: De Gruyter. p. 118. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-3-11-071688-7" title="Special:BookSources/978-3-11-071688-7"><bdi>978-3-11-071688-7</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Cryptocurrency+Ponzi+schemes&rft.btitle=Understanding+Cryptocurrency+Fraud.+The+challenges+and+headwinds+to+regulate+digital+currencies&rft.place=Boston%2FBerlin&rft.pages=118&rft.pub=De+Gruyter&rft.date=2022&rft.isbn=978-3-11-071688-7&rft.aulast=Mukherjee&rft.aufirst=Sanmoy&rft.au=Larkin%2C+Charles&rft.au=Corbet%2C+Shaen&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-30"><span class="mw-cite-backlink"><b><a href="#cite_ref-30">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFNestarcova2019" class="citation book cs1">Nestarcova, Dominika (2019). <i>A Critical Appraisal of Initial Coin Offerings. Lifting the "Digital Token's Veil"</i>. Leiden/Boston: Brill. pp. 43 f. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-90-04-41657-4" title="Special:BookSources/978-90-04-41657-4"><bdi>978-90-04-41657-4</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=A+Critical+Appraisal+of+Initial+Coin+Offerings.+Lifting+the+%22Digital+Token%27s+Veil%22&rft.place=Leiden%2FBoston&rft.pages=43+f&rft.pub=Brill&rft.date=2019&rft.isbn=978-90-04-41657-4&rft.aulast=Nestarcova&rft.aufirst=Dominika&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-31"><span class="mw-cite-backlink"><b><a href="#cite_ref-31">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFRao2022" class="citation book cs1">Rao, Sandeep (2022). "Mt. Gox – The fall of a giant". In Corbet, Shaen (ed.). <i>Understanding Cryptocurrency Fraud. The challenges and headwinds to regulate digital currencies</i>. Boston/Berlin: De Gruyter. p. 80. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-3-11-071688-7" title="Special:BookSources/978-3-11-071688-7"><bdi>978-3-11-071688-7</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Mt.+Gox+%E2%80%93+The+fall+of+a+giant&rft.btitle=Understanding+Cryptocurrency+Fraud.+The+challenges+and+headwinds+to+regulate+digital+currencies&rft.place=Boston%2FBerlin&rft.pages=80&rft.pub=De+Gruyter&rft.date=2022&rft.isbn=978-3-11-071688-7&rft.aulast=Rao&rft.aufirst=Sandeep&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-32"><span class="mw-cite-backlink"><b><a href="#cite_ref-32">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFNestarcova2019" class="citation book cs1">Nestarcova, Dominika (2019). <i>A Critical Appraisal of Initial Coin Offerings. Lifting the "Digital Token's Veil"</i>. Leiden/Boston: Brill. pp. 43 f. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-90-04-41657-4" title="Special:BookSources/978-90-04-41657-4"><bdi>978-90-04-41657-4</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=A+Critical+Appraisal+of+Initial+Coin+Offerings.+Lifting+the+%22Digital+Token%27s+Veil%22&rft.place=Leiden%2FBoston&rft.pages=43+f&rft.pub=Brill&rft.date=2019&rft.isbn=978-90-04-41657-4&rft.aulast=Nestarcova&rft.aufirst=Dominika&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span> Cf. <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFClayton2017" class="citation web cs1"><a href="/wiki/Jay_Clayton_(attorney)" title="Jay Clayton (attorney)">Clayton, Jay</a> (11 December 2017). <a rel="nofollow" class="external text" href="https://www.sec.gov/news/public-statement/statement-clayton-2017-12-11">"Statement on Cryptocurrencies and Initial Coin Offerings"</a>. U.S. Securities and Exchange Commission (SEC)<span class="reference-accessdate">. Retrieved <span class="nowrap">13 January</span> 2023</span>. <q>Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge. As a result, risks can be amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.</q></cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Statement+on+Cryptocurrencies+and+Initial+Coin+Offerings&rft.pub=U.S.+Securities+and+Exchange+Commission+%28SEC%29&rft.date=2017-12-11&rft.aulast=Clayton&rft.aufirst=Jay&rft_id=https%3A%2F%2Fwww.sec.gov%2Fnews%2Fpublic-statement%2Fstatement-clayton-2017-12-11&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-33"><span class="mw-cite-backlink"><b><a href="#cite_ref-33">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFVolpicelli" class="citation magazine cs1">Volpicelli, Gian M. <a rel="nofollow" class="external text" href="https://www.wired.com/story/terra-luna-collapse/">"Terra's Crypto Meltdown Was Inevitable"</a>. <i>Wired</i> – via www.wired.com.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Wired&rft.atitle=Terra%27s+Crypto+Meltdown+Was+Inevitable&rft.aulast=Volpicelli&rft.aufirst=Gian+M.&rft_id=https%3A%2F%2Fwww.wired.com%2Fstory%2Fterra-luna-collapse%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-34"><span class="mw-cite-backlink"><b><a href="#cite_ref-34">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFNestarcova2019" class="citation book cs1">Nestarcova, Dominika (2019). <i>A Critical Appraisal of Initial Coin Offerings. Lifting the "Digital Token's Veil"</i>. Leiden/Boston: Brill. p. 43. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-90-04-41657-4" title="Special:BookSources/978-90-04-41657-4"><bdi>978-90-04-41657-4</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=A+Critical+Appraisal+of+Initial+Coin+Offerings.+Lifting+the+%22Digital+Token%27s+Veil%22&rft.place=Leiden%2FBoston&rft.pages=43&rft.pub=Brill&rft.date=2019&rft.isbn=978-90-04-41657-4&rft.aulast=Nestarcova&rft.aufirst=Dominika&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span> Cf. <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.sec.gov/news/press-release/2018-8">"SEC Halts Alleged Initial Coin Offering Scam"</a>. U.S. Securities and Exchange Commission (SEC). 30 January 2018<span class="reference-accessdate">. Retrieved <span class="nowrap">13 January</span> 2023</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=SEC+Halts+Alleged+Initial+Coin+Offering+Scam&rft.pub=U.S.+Securities+and+Exchange+Commission+%28SEC%29&rft.date=2018-01-30&rft_id=https%3A%2F%2Fwww.sec.gov%2Fnews%2Fpress-release%2F2018-8&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-35"><span class="mw-cite-backlink"><b><a href="#cite_ref-35">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFGirasa2022" class="citation book cs1">Girasa, Rosario (2022). "Criminal Prosecutions and Civil Litigation Concerning Blockchain Technologies". <i>Regulation of Cryptocurrencies and Blockchain Technologies. National and International Perspectives</i>. Pleasantville: Palgrave. pp. 184 f. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1007%2F978-3-319-78509-7">10.1007/978-3-319-78509-7</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-3-319-78508-0" title="Special:BookSources/978-3-319-78508-0"><bdi>978-3-319-78508-0</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Criminal+Prosecutions+and+Civil+Litigation+Concerning+Blockchain+Technologies&rft.btitle=Regulation+of+Cryptocurrencies+and+Blockchain+Technologies.+National+and+International+Perspectives&rft.place=Pleasantville&rft.pages=184+f&rft.pub=Palgrave&rft.date=2022&rft_id=info%3Adoi%2F10.1007%2F978-3-319-78509-7&rft.isbn=978-3-319-78508-0&rft.aulast=Girasa&rft.aufirst=Rosario&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-36"><span class="mw-cite-backlink"><b><a href="#cite_ref-36">^</a></b></span> <span class="reference-text">For further examples of ponzi schemes involving cryptocurrencies see <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMukherjeeLarkinCorbet2022" class="citation book cs1">Mukherjee, Sanmoy; Larkin, Charles; Corbet, Shaen (2022). "Cryptocurrency Ponzi schemes". In Corbet, Shaen (ed.). <i>Understanding Cryptocurrency Fraud. The challenges and headwinds to regulate digital currencies</i>. Boston/Berlin: De Gruyter. pp. 111–117. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-3-11-071688-7" title="Special:BookSources/978-3-11-071688-7"><bdi>978-3-11-071688-7</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Cryptocurrency+Ponzi+schemes&rft.btitle=Understanding+Cryptocurrency+Fraud.+The+challenges+and+headwinds+to+regulate+digital+currencies&rft.place=Boston%2FBerlin&rft.pages=111-117&rft.pub=De+Gruyter&rft.date=2022&rft.isbn=978-3-11-071688-7&rft.aulast=Mukherjee&rft.aufirst=Sanmoy&rft.au=Larkin%2C+Charles&rft.au=Corbet%2C+Shaen&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-37"><span class="mw-cite-backlink"><b><a href="#cite_ref-37">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.finextra.com/newsarticle/41002/jpmorgan-chief-calls-crypto-a-decentralised-ponzi-scheme">"JPMorgan chief calls crypto a 'decentralised Ponzi scheme'<span class="cs1-kern-right"></span>"</a>. 23 September 2022.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=JPMorgan+chief+calls+crypto+a+%27decentralised+Ponzi+scheme%27&rft.date=2022-09-23&rft_id=https%3A%2F%2Fwww.finextra.com%2Fnewsarticle%2F41002%2Fjpmorgan-chief-calls-crypto-a-decentralised-ponzi-scheme&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-38">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://ghostarchive.org/archive/20221210/https://www.ft.com/content/1877c388-8797-11e5-90de-f44762bf9896">"Bitcoin's place in the long history of pyramid schemes"</a>. <i><a href="/wiki/Financial_Times" title="Financial Times">Financial Times</a></i>. Archived from <span class="id-lock-subscription" title="Paid subscription required"><a rel="nofollow" class="external text" href="https://www.ft.com/content/1877c388-8797-11e5-90de-f44762bf9896">the original</a></span> on 10 December 2022<span class="reference-accessdate">. Retrieved <span class="nowrap">19 January</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Financial+Times&rft.atitle=Bitcoin%27s+place+in+the+long+history+of+pyramid+schemes&rft_id=https%3A%2F%2Fwww.ft.com%2Fcontent%2F1877c388-8797-11e5-90de-f44762bf9896&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-FOOTNOTEKindlebergerAliber200528-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-FOOTNOTEKindlebergerAliber200528_39-0">^</a></b></span> <span class="reference-text"><a href="#CITEREFKindlebergerAliber2005">Kindleberger & Aliber 2005</a>, p. 28.</span> </li> <li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFFazzariPapadimitriou1992" class="citation book cs1">Fazzari, Steven M.; Papadimitriou, Dimitri B. (1992). "Hyman Minsky as Hedgehog: The Power of the Wall Street Paradigm". In Fazzari, Steven M.; Papadimitriou, Dimitri B. (eds.). <i>Financial Conditions and Macroeconomic Performance: Essays in Honor of Hyman P.Minsky</i>. Routledge. pp. 38–40. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.4324%2F9781315704340">10.4324/9781315704340</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/9781315704340" title="Special:BookSources/9781315704340"><bdi>9781315704340</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Hyman+Minsky+as+Hedgehog%3A+The+Power+of+the+Wall+Street+Paradigm&rft.btitle=Financial+Conditions+and+Macroeconomic+Performance%3A+Essays+in+Honor+of+Hyman+P.Minsky&rft.pages=38-40&rft.pub=Routledge&rft.date=1992&rft_id=info%3Adoi%2F10.4324%2F9781315704340&rft.isbn=9781315704340&rft.aulast=Fazzari&rft.aufirst=Steven+M.&rft.au=Papadimitriou%2C+Dimitri+B.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-41"><span class="mw-cite-backlink"><b><a href="#cite_ref-41">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFWigger2009" class="citation journal cs1">Wigger, Berthold U. (2009). <a rel="nofollow" class="external text" href="https://linkinghub.elsevier.com/retrieve/pii/S0164070408000487">"A note on public debt, tax-exempt bonds, and Ponzi games"</a>. <i>Journal of Macroeconomics</i>. <b>31</b> (3): 492–499. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.jmacro.2008.07.003">10.1016/j.jmacro.2008.07.003</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:154039145">154039145</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Macroeconomics&rft.atitle=A+note+on+public+debt%2C+tax-exempt+bonds%2C+and+Ponzi+games&rft.volume=31&rft.issue=3&rft.pages=492-499&rft.date=2009&rft_id=info%3Adoi%2F10.1016%2Fj.jmacro.2008.07.003&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A154039145%23id-name%3DS2CID&rft.aulast=Wigger&rft.aufirst=Berthold+U.&rft_id=https%3A%2F%2Flinkinghub.elsevier.com%2Fretrieve%2Fpii%2FS0164070408000487&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-42"><span class="mw-cite-backlink"><b><a href="#cite_ref-42">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFBlanchardWeil2001" class="citation journal cs1">Blanchard, Olivier; Weil, Philippe (29 November 2001). <a rel="nofollow" class="external text" href="https://www.degruyter.com/document/doi/10.2202/1534-6013.1031/html">"Dynamic Efficiency, the Riskless Rate, and Debt Ponzi Games under Uncertainty"</a>. <i>The B.E. Journal of Macroeconomics</i>. <b>1</b> (2): 153460131031. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2202%2F1534-6013.1031">10.2202/1534-6013.1031</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/1935-1690">1935-1690</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:201282659">201282659</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+B.E.+Journal+of+Macroeconomics&rft.atitle=Dynamic+Efficiency%2C+the+Riskless+Rate%2C+and+Debt+Ponzi+Games+under+Uncertainty&rft.volume=1&rft.issue=2&rft.pages=153460131031&rft.date=2001-11-29&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A201282659%23id-name%3DS2CID&rft.issn=1935-1690&rft_id=info%3Adoi%2F10.2202%2F1534-6013.1031&rft.aulast=Blanchard&rft.aufirst=Olivier&rft.au=Weil%2C+Philippe&rft_id=https%3A%2F%2Fwww.degruyter.com%2Fdocument%2Fdoi%2F10.2202%2F1534-6013.1031%2Fhtml&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> <li id="cite_note-43"><span class="mw-cite-backlink"><b><a href="#cite_ref-43">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFO'ConnellZeldes1988" class="citation journal cs1">O'Connell, Stephen A.; Zeldes, Stephen P. (1988). <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2526789">"Rational Ponzi Games"</a>. <i>International Economic Review</i>. <b>29</b> (3): 431. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F2526789">10.2307/2526789</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2526789">2526789</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=International+Economic+Review&rft.atitle=Rational+Ponzi+Games&rft.volume=29&rft.issue=3&rft.pages=431&rft.date=1988&rft_id=info%3Adoi%2F10.2307%2F2526789&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F2526789%23id-name%3DJSTOR&rft.aulast=O%27Connell&rft.aufirst=Stephen+A.&rft.au=Zeldes%2C+Stephen+P.&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F2526789&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></span> </li> </ol></div></div> <div class="mw-heading mw-heading3"><h3 id="Sources">Sources</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=17" title="Edit section: Sources"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239549316">.mw-parser-output .refbegin{margin-bottom:0.5em}.mw-parser-output .refbegin-hanging-indents>ul{margin-left:0}.mw-parser-output .refbegin-hanging-indents>ul>li{margin-left:0;padding-left:3.2em;text-indent:-3.2em}.mw-parser-output .refbegin-hanging-indents ul,.mw-parser-output .refbegin-hanging-indents ul li{list-style:none}@media(max-width:720px){.mw-parser-output .refbegin-hanging-indents>ul>li{padding-left:1.6em;text-indent:-1.6em}}.mw-parser-output .refbegin-columns{margin-top:0.3em}.mw-parser-output .refbegin-columns ul{margin-top:0}.mw-parser-output .refbegin-columns li{page-break-inside:avoid;break-inside:avoid-column}@media screen{.mw-parser-output .refbegin{font-size:90%}}</style><div class="refbegin" style=""> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFDeasonRajgopalWaymire2015" class="citation journal cs1">Deason, Stephen; Rajgopal, Shivaram; Waymire, Gregory B. (2015). <a rel="nofollow" class="external text" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2586490">"Who Gets Swindled in Ponzi Schemes?"</a>. <i>SSRN</i> (2586490). <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2139%2Fssrn.2586490">10.2139/ssrn.2586490</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:151002206">151002206</a>. <a href="/wiki/SSRN_(identifier)" class="mw-redirect" title="SSRN (identifier)">SSRN</a> <a rel="nofollow" class="external text" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2586490">2586490</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=SSRN&rft.atitle=Who+Gets+Swindled+in+Ponzi+Schemes%3F&rft.issue=2586490&rft.date=2015&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A151002206%23id-name%3DS2CID&rft_id=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D2586490%23id-name%3DSSRN&rft_id=info%3Adoi%2F10.2139%2Fssrn.2586490&rft.aulast=Deason&rft.aufirst=Stephen&rft.au=Rajgopal%2C+Shivaram&rft.au=Waymire%2C+Gregory+B.&rft_id=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D2586490&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFFrankel2012" class="citation book cs1">Frankel, Tamar (2012). <i>The Ponzi Scheme Puzzle : A History and Analysis of Con Artists and Victims</i>. New York: Oxford University Press. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-19-992661-9" title="Special:BookSources/978-0-19-992661-9"><bdi>978-0-19-992661-9</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=The+Ponzi+Scheme+Puzzle+%3A+A+History+and+Analysis+of+Con+Artists+and+Victims&rft.place=New+York&rft.pub=Oxford+University+Press&rft.date=2012&rft.isbn=978-0-19-992661-9&rft.aulast=Frankel&rft.aufirst=Tamar&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFKindlebergerAliber2005" class="citation book cs1">Kindleberger, Charles P.; Aliber, Robert Z. (2005). <i>Manias, Panics, and Crashes : A History of Financial Crises</i> (5th ed.). Hoboken, N.J.: John Wiley & Sons.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Manias%2C+Panics%2C+and+Crashes+%3A+A+History+of+Financial+Crises&rft.place=Hoboken%2C+N.J.&rft.edition=5th&rft.pub=John+Wiley+%26+Sons&rft.date=2005&rft.aulast=Kindleberger&rft.aufirst=Charles+P.&rft.au=Aliber%2C+Robert+Z.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFLFP_I_SICAV_directors2013" class="citation web cs1"><a href="/w/index.php?title=LFP_I_SICAV_directors&action=edit&redlink=1" class="new" title="LFP I SICAV directors (page does not exist)">LFP I SICAV directors</a> (2013). <a rel="nofollow" class="external text" href="https://www.lfp1-sicav.com">"LFP I SICAV : 4 Luxembourg Ponzi schemes"</a><span class="reference-accessdate">. Retrieved <span class="nowrap">9 June</span> 2021</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=LFP+I+SICAV+%3A+4+Luxembourg+Ponzi+schemes&rft.date=2013&rft.au=LFP+I+SICAV+directors&rft_id=https%3A%2F%2Fwww.lfp1-sicav.com&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFLewis2016" class="citation book cs1">Lewis, Mervyn K. (2016). <i>Understanding Ponzi schemes</i>. Cheltenham, UK: Elgar. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-1786433404" title="Special:BookSources/978-1786433404"><bdi>978-1786433404</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Understanding+Ponzi+schemes&rft.place=Cheltenham%2C+UK&rft.pub=Elgar&rft.date=2016&rft.isbn=978-1786433404&rft.aulast=Lewis&rft.aufirst=Mervyn+K.&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFSpringer2021" class="citation book cs1">Springer, Marie (2021). <i>The Politics of Ponzi Schemes : History, Theory, and Policy</i>. New York, NY: Routledge.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=The+Politics+of+Ponzi+Schemes+%3A+History%2C+Theory%2C+and+Policy&rft.place=New+York%2C+NY&rft.pub=Routledge&rft.date=2021&rft.aulast=Springer&rft.aufirst=Marie&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFU.S._Securities_and_Exchange_Commission2013" class="citation web cs1"><a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">U.S. Securities and Exchange Commission</a> (2013). <a rel="nofollow" class="external text" href="https://www.sec.gov/files/ia_virtualcurrencies.pdf">"Investor altert: Ponzi schemes Using Virtual Currencies"</a> <span class="cs1-format">(PDF)</span>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20170506045014/https://www.sec.gov/files/ia_virtualcurrencies.pdf">Archived</a> <span class="cs1-format">(PDF)</span> from the original on 6 May 2017<span class="reference-accessdate">. Retrieved <span class="nowrap">9 June</span> 2021</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Investor+altert%3A+Ponzi+schemes+Using+Virtual+Currencies&rft.date=2013&rft.au=U.S.+Securities+and+Exchange+Commission&rft_id=https%3A%2F%2Fwww.sec.gov%2Ffiles%2Fia_virtualcurrencies.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span> <span class="noviewer" typeof="mw:File"><span><img alt="Public Domain" src="//upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/12px-PD-icon.svg.png" decoding="async" width="12" height="12" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/18px-PD-icon.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/6/62/PD-icon.svg/24px-PD-icon.svg.png 2x" data-file-width="196" data-file-height="196" /></span></span> This article incorporates <a href="/wiki/Copyright_status_of_works_by_the_federal_government_of_the_United_States" title="Copyright status of works by the federal government of the United States">public domain material</a> from websites or documents of the <a href="/wiki/United_States_Government" class="mw-redirect" title="United States Government">United States Government</a>.</li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFZuckoff2005" class="citation book cs1">Zuckoff, Mitchell (2005). <i>Ponzi's Scheme : The True Story of a Financial Legend</i>. New York: Random House.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Ponzi%27s+Scheme+%3A+The+True+Story+of+a+Financial+Legend&rft.place=New+York&rft.pub=Random+House&rft.date=2005&rft.aulast=Zuckoff&rft.aufirst=Mitchell&rfr_id=info%3Asid%2Fen.wikipedia.org%3APonzi+scheme" class="Z3988"></span></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Ponzi_scheme&action=edit&section=18" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Commons-logo.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/12px-Commons-logo.svg.png" decoding="async" width="12" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/18px-Commons-logo.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/24px-Commons-logo.svg.png 2x" data-file-width="1024" data-file-height="1376" /></a></span> Media related to <a href="https://commons.wikimedia.org/wiki/Category:Pyramid_and_Ponzi_schemes" class="extiw" title="commons:Category:Pyramid and Ponzi schemes">Pyramid and Ponzi schemes</a> at Wikimedia Commons</li> <li><a rel="nofollow" class="external text" href="https://www.sec.gov/answers/ponzi.htm">Ponzi Schemes FAQ</a> Information and advice from the US Securities and Exchange Commission</li> <li><a rel="nofollow" class="external text" href="https://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/index.htm">Fraud Awareness and Prevention</a> Information about spotting fraud from the US Commodities Futures Trading Commission</li> <li><a rel="nofollow" class="external text" href="https://bookstore.gpo.gov/products/ponzimonium-how-scam-artists-are-ripping-america-epub-ebook">Ponzimonium</a> Free e-book about Ponzi schemes from the US Commodity Futures Trading Commission</li></ul> <div class="navbox-styles"><style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist ol dl,.mw-parser-output .hlist ol ol,.mw-parser-output .hlist ol ul,.mw-parser-output .hlist ul dl,.mw-parser-output .hlist ul ol,.mw-parser-output .hlist ul ul{display:inline}.mw-parser-output .hlist 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autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Scams_and_confidence_tricks" title="Template:Scams and confidence tricks"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Scams_and_confidence_tricks" title="Template talk:Scams and confidence tricks"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Scams_and_confidence_tricks" title="Special:EditPage/Template:Scams and confidence tricks"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Scams_and_confidence_tricks" style="font-size:114%;margin:0 4em">Scams and confidence tricks</div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Terminology</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Scam" title="Scam">Scam</a></li> <li><a href="/wiki/Error_account" title="Error account">Error account</a></li> <li><a href="/wiki/Shill" title="Shill">Shill</a></li> <li><a href="/wiki/Shyster" title="Shyster">Shyster</a></li> <li><a href="/wiki/Sucker_list" title="Sucker list">Sucker list</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Variants</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Advance-fee_scam" title="Advance-fee scam">Advance-fee scam</a></li> <li><a href="/wiki/Art_student_scam" title="Art student scam">Art student scam</a></li> <li><a href="/wiki/Badger_game" title="Badger game">Badger game</a></li> <li><a href="/wiki/Bait-and-switch" title="Bait-and-switch">Bait-and-switch</a></li> <li><a href="/wiki/Black_money_scam" title="Black money scam">Black money scam</a></li> <li><a href="/wiki/Blessing_scam" title="Blessing scam">Blessing scam</a></li> <li><a href="/wiki/Bogus_escrow" title="Bogus escrow">Bogus escrow</a></li> <li><a href="/wiki/Boiler_room_(business)" title="Boiler room (business)">Boiler room</a></li> <li><a href="/wiki/Bride_scam" title="Bride scam">Bride scam</a></li> <li><a href="/wiki/Charity_fraud" title="Charity fraud">Charity fraud</a></li> <li><a href="/wiki/Clip_joint" title="Clip joint">Clip joint</a></li> <li><a href="/wiki/Coin-matching_game" title="Coin-matching game">Coin-matching game</a></li> <li><a href="/wiki/Coin_rolling_scams" title="Coin rolling scams">Coin rolling scams</a></li> <li><a href="/wiki/Drop_swindle" title="Drop swindle">Drop swindle</a></li> <li><a href="/wiki/Embarrassing_cheque" title="Embarrassing cheque">Embarrassing cheque</a></li> <li><a href="/wiki/Exit_scam" title="Exit scam">Exit scam</a></li> <li><a href="/wiki/Extraterrestrial_real_estate" title="Extraterrestrial real estate">Extraterrestrial real estate</a></li> <li><a href="/wiki/Fiddle_game" class="mw-redirect" title="Fiddle game">Fiddle game</a></li> <li><a href="/wiki/Fine_print" title="Fine print">Fine print</a></li> <li><a href="/wiki/Foreclosure_rescue_scheme" title="Foreclosure rescue scheme">Foreclosure rescue scheme</a></li> <li><a href="/wiki/Foreign_exchange_fraud" title="Foreign exchange fraud">Foreign exchange fraud</a></li> <li><a href="/wiki/Fortune_telling_fraud" title="Fortune telling fraud">Fortune telling fraud</a></li> <li><a href="/wiki/Gem_scam" title="Gem scam">Gem scam</a></li> <li><a href="/wiki/Get-rich-quick_scheme" title="Get-rich-quick scheme">Get-rich-quick scheme</a></li> <li><a href="/wiki/Green_goods_scam" title="Green goods scam">Green goods scam</a></li> <li><a href="/wiki/Hustling" title="Hustling">Hustling</a></li> <li><a href="/wiki/Indian_coal_allocation_scam" title="Indian coal allocation scam">Indian coal allocation scam</a></li> <li><a href="/wiki/IRS_impersonation_scam" title="IRS impersonation scam">IRS impersonation scam</a></li> <li><a href="/wiki/Scams_in_intellectual_property" title="Scams in intellectual property">Intellectual property scams</a></li> <li><a href="/wiki/Kansas_City_Shuffle" title="Kansas City Shuffle">Kansas City Shuffle</a></li> <li><a href="/wiki/Locksmith_scam" title="Locksmith scam">Locksmith scam</a></li> <li><a href="/wiki/Long_firm_fraud" title="Long firm fraud">Long firm</a></li> <li><a href="/wiki/Mismarking" title="Mismarking">Mismarking</a></li> <li><a href="/wiki/Mock_auction" title="Mock auction">Mock auction</a></li> <li><a href="/wiki/Moving_scam" title="Moving scam">Moving scam</a></li> <li><a href="/wiki/Overpayment_scam" title="Overpayment scam">Overpayment scam</a></li> <li><a href="/wiki/Patent_safe" title="Patent safe">Patent safe</a></li> <li><a href="/wiki/Pig_in_a_poke" title="Pig in a poke">Pig in a poke</a></li> <li><a href="/wiki/Pigeon_drop" title="Pigeon drop">Pigeon drop</a></li> <li><a href="/wiki/Pork_barrel" title="Pork barrel">Pork barrel</a></li> <li><a href="/wiki/Pump_and_dump" title="Pump and dump">Pump and dump</a></li> <li><a href="/wiki/Redemption_movement" title="Redemption movement">Redemption/A4V schemes</a></li> <li><a href="/wiki/Reloading_scam" title="Reloading scam">Reloading scam</a></li> <li><a href="/wiki/Return_fraud" title="Return fraud">Return fraud</a></li> <li><a href="/wiki/Salting_(confidence_trick)" title="Salting (confidence trick)">Salting</a></li> <li><a href="/wiki/Shell_game" title="Shell game">Shell game</a></li> <li><a href="/wiki/Sick_baby_hoax" title="Sick baby hoax">Sick baby hoax</a></li> <li><a href="/wiki/SIM_swap_scam" title="SIM swap scam">SIM swap scam</a></li> <li><a href="/wiki/Slavery_reparations_scam" title="Slavery reparations scam">Slavery reparations scam</a></li> <li><a href="/wiki/Spanish_Prisoner" title="Spanish Prisoner">Spanish Prisoner</a></li> <li><a href="/wiki/SSA_impersonation_scam" title="SSA impersonation scam">SSA impersonation scam</a></li> <li><a href="/wiki/SSC_Scam" title="SSC Scam">SSC Scam</a></li> <li><a href="/wiki/Strip_search_phone_call_scam" title="Strip search phone call scam">Strip search phone call scam</a></li> <li><a href="/wiki/Swampland_in_Florida" title="Swampland in Florida">Swampland in Florida</a></li> <li><a href="/wiki/Tarmac_scam" title="Tarmac scam">Tarmac scam</a></li> <li><a href="/wiki/Technical_support_scam" title="Technical support scam">Technical support scam</a></li> <li><a href="/wiki/Telemarketing_fraud" title="Telemarketing fraud">Telemarketing fraud</a></li> <li><a href="/wiki/Thai_tailor_scam" title="Thai tailor scam">Thai tailor scam</a></li> <li><a href="/wiki/Thai_zig_zag_scam" title="Thai zig zag scam">Thai zig zag scam</a></li> <li><a href="/wiki/Three-card_monte" title="Three-card monte">Three-card monte</a></li> <li><a href="/wiki/Trojan_horse_(business)" title="Trojan horse (business)">Trojan horse</a></li> <li><a href="/wiki/Wash_trading" class="mw-redirect" title="Wash trading">Wash trading</a></li> <li><a href="/wiki/White_van_speaker_scam" title="White van speaker scam">White van speaker scam</a></li> <li><a href="/wiki/Work-at-home_scheme" title="Work-at-home scheme">Work-at-home scheme</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Internet_fraud" title="Internet fraud">Internet scams</a> and<br />countermeasures</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Avalanche_(phishing_group)" title="Avalanche (phishing group)">Avalanche</a></li> <li><a href="/wiki/Pig_butchering_scam" title="Pig butchering scam">Pig Butchering</a></li> <li><a href="/wiki/Carding_(fraud)" title="Carding (fraud)">Carding</a></li> <li><a href="/wiki/Catfishing" title="Catfishing">Catfishing</a></li> <li><a href="/wiki/Click_fraud" title="Click fraud">Click fraud</a></li> <li><a href="/wiki/Clickjacking" title="Clickjacking">Clickjacking</a></li> <li><a href="/wiki/Cramming_(fraud)" title="Cramming (fraud)">Cramming</a></li> <li><a href="/wiki/Category:Cryptocurrency_scams" title="Category:Cryptocurrency scams">Cryptocurrency scams</a></li> <li><a href="/wiki/Cybercrime" title="Cybercrime">Cybercrime</a></li> <li><a href="/wiki/CyberThrill" title="CyberThrill">CyberThrill</a></li> <li><a href="/wiki/DarkMarket" title="DarkMarket">DarkMarket</a></li> <li><a href="/wiki/Domain_name_scams" class="mw-redirect" title="Domain name scams">Domain name scams</a></li> <li><a href="/wiki/Email_authentication" title="Email authentication">Email authentication</a></li> <li><a href="/wiki/Email_fraud" title="Email fraud">Email fraud</a></li> <li><a href="/wiki/Internet_vigilantism" title="Internet vigilantism">Internet vigilantism</a></li> <li><a href="/wiki/Lenny_(bot)" title="Lenny (bot)">Lenny anti-scam bot</a></li> <li><a href="/wiki/Lottery_scam" title="Lottery scam">Lottery scam</a></li> <li><a href="/wiki/PayPaI" title="PayPaI">PayPai</a></li> <li><a href="/wiki/Phishing" title="Phishing">Phishing</a></li> <li><a href="/wiki/Referer_spoofing" title="Referer spoofing">Referer spoofing</a></li> <li><a href="/wiki/Ripoff_Report" title="Ripoff Report">Ripoff Report</a></li> <li><a href="/wiki/Rock_Phish" title="Rock Phish">Rock Phish</a></li> <li><a href="/wiki/Romance_scam" title="Romance scam">Romance scam</a></li> <li><a href="/wiki/Russian_Business_Network" title="Russian Business Network">Russian Business Network</a></li> <li><a href="/wiki/SaferNet" title="SaferNet">SaferNet</a></li> <li><a href="/wiki/Scam_baiting" title="Scam baiting">Scam baiting</a> <ul><li><a href="/wiki/419eater.com" title="419eater.com">419eater.com</a></li> <li><a href="/wiki/Jim_Browning_(YouTuber)" title="Jim Browning (YouTuber)">Jim Browning</a></li> <li><a href="/wiki/Kitboga_(streamer)" title="Kitboga (streamer)">Kitboga</a></li> <li><a href="/wiki/Scammer_Payback" title="Scammer Payback">Scammer Payback</a></li></ul></li> <li><a href="/wiki/ShadowCrew" title="ShadowCrew">ShadowCrew</a></li> <li><a href="/wiki/Spoofed_URL" title="Spoofed URL">Spoofed URL</a></li> <li><a href="/wiki/Spoofing_attack" title="Spoofing attack">Spoofing attack</a></li> <li><a href="/wiki/Stock_Generation" title="Stock Generation">Stock Generation</a></li> <li><a href="/wiki/Voice_phishing" title="Voice phishing">Voice phishing</a></li> <li><a href="/wiki/Reputation_management" title="Reputation management">Website reputation ratings</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Pyramid_scheme" title="Pyramid scheme">Pyramid</a> and<br /><a class="mw-selflink selflink">Ponzi schemes</a></th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Aman_Futures_Group" class="mw-redirect" title="Aman Futures Group">Aman Futures Group</a></li> <li><a href="/wiki/Bernard_Cornfeld" title="Bernard Cornfeld">Bernard Cornfeld</a></li> <li><a href="/wiki/Caritas_(Ponzi_scheme)" title="Caritas (Ponzi scheme)">Caritas</a></li> <li><a href="/wiki/Dona_Branca" title="Dona Branca">Dona Branca</a></li> <li><a href="/wiki/Earl_Jones_(investment_advisor)" title="Earl Jones (investment advisor)">Earl Jones</a></li> <li><a href="/wiki/Ezubao" title="Ezubao">Ezubao</a></li> <li><a href="/wiki/Foundation_for_New_Era_Philanthropy" title="Foundation for New Era Philanthropy">Foundation for New Era Philanthropy</a></li> <li><a href="/wiki/Franchise_fraud" title="Franchise fraud">Franchise fraud</a></li> <li><a href="/wiki/High-yield_investment_program" title="High-yield investment program">High-yield investment program (HYIP)</a></li> <li><a href="/wiki/Investors_Overseas_Service" title="Investors Overseas Service">Investors Overseas Service</a></li> <li><a href="/wiki/Kapa_investment_scam" class="mw-redirect" title="Kapa investment scam">Kapa investment scam</a></li> <li><a href="/wiki/Kubus_scheme" title="Kubus scheme">Kubus scheme</a></li> <li><a href="/wiki/Madoff_investment_scandal" title="Madoff investment scandal">Madoff investment scandal</a></li> <li><a href="/wiki/Make_Money_Fast" title="Make Money Fast">Make Money Fast</a></li> <li><a href="/wiki/Matrix_scheme" title="Matrix scheme">Matrix scheme</a></li> <li><a href="/wiki/MMM_(Ponzi_scheme_company)" title="MMM (Ponzi scheme company)">MMM</a></li> <li><a href="/wiki/Petters_Group_Worldwide" title="Petters Group Worldwide">Petters Group Worldwide</a></li> <li><a href="/wiki/Pyramid_schemes_in_Albania" title="Pyramid schemes in Albania">Pyramid schemes in Albania</a></li> <li><a href="/wiki/Reed_Slatkin" title="Reed Slatkin">Reed Slatkin</a></li> <li><a href="/wiki/Saradha_Group_financial_scandal" title="Saradha Group financial scandal">Saradha Group financial scandal</a></li> <li><a href="/wiki/Secret_Sister" title="Secret Sister">Secret Sister</a></li> <li><a href="/wiki/Scott_W._Rothstein" title="Scott W. Rothstein">Scott W. Rothstein</a></li> <li><a href="/wiki/Stanford_Financial_Group" title="Stanford Financial Group">Stanford Financial Group</a></li> <li><a href="/wiki/Welsh_Thrasher_faith_scam" title="Welsh Thrasher faith scam">Welsh Thrasher faith scam</a></li> <li><a href="/wiki/WinCapita" title="WinCapita">WinCapita</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Lists</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/List_of_con_artists" title="List of con artists">Con artists</a></li> <li><a href="/wiki/List_of_confidence_tricks" class="mw-redirect" title="List of confidence tricks">Confidence tricks</a></li> <li><a href="/wiki/List_of_criminal_enterprises,_gangs,_and_syndicates" title="List of criminal enterprises, gangs, and syndicates">Criminal enterprises, gangs and syndicates</a></li> <li><a href="/wiki/List_of_impostors" title="List of impostors">Impostors</a></li> <li>In the media <ul><li><a href="/wiki/Confidence_tricks_in_film_and_television" title="Confidence tricks in film and television">Film and television</a></li> <li><a href="/wiki/Confidence_tricks_in_literature" title="Confidence tricks in literature">Literature</a></li></ul></li> <li><a href="/wiki/List_of_Ponzi_schemes" title="List of Ponzi schemes">Ponzi schemes</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox authority-control" aria-label="Navbox" style="padding:3px"><table class="nowraplinks hlist navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Help:Authority_control" title="Help:Authority control">Authority control databases</a>: National <span class="mw-valign-text-top noprint" typeof="mw:File/Frameless"><a href="https://www.wikidata.org/wiki/Q219407#identifiers" title="Edit this at Wikidata"><img alt="Edit this at Wikidata" src="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/10px-OOjs_UI_icon_edit-ltr-progressive.svg.png" decoding="async" width="10" height="10" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/15px-OOjs_UI_icon_edit-ltr-progressive.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/20px-OOjs_UI_icon_edit-ltr-progressive.svg.png 2x" data-file-width="20" data-file-height="20" /></a></span></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"><ul><li><span class="uid"><a rel="nofollow" class="external text" href="https://id.loc.gov/authorities/sh00005148">United States</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://catalogue.bnf.fr/ark:/12148/cb161945669">France</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://data.bnf.fr/ark:/12148/cb161945669">BnF data</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="http://olduli.nli.org.il/F/?func=find-b&local_base=NLX10&find_code=UID&request=987007291733805171">Israel</a></span></li></ul></div></td></tr></tbody></table></div>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?type=1x1" alt="" width="1" height="1" style="border: none; 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