Bitcoin Becomes a Tool For Ponzi Schemes
Bitcoin has often been called a ponzi scheme, but this time, the SEC is punishing an individual who defrauded investors of $149 million.
Bitcoin and other crypto-currencies have been dogged by the assertion that they are ponzi schemes. While the supporters of bitcoin have tried to shake criticisms over the years, this one keeps returning. Now, an actual ponzi scheme has been perpetrated using Bitcoin as a cloaking mechanism, so it’s likely that the assertion will stick.
A ponzi scheme is a kind of investment fraud, where the scammer collects money from investors and pays the earliest investors with the money generated by later investors.
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