Ponzi Scheme

A fraudulent investment scheme where returns for earlier investors are paid using capital from newer investors, rather than from legitimate business profits. Named after Charles Ponzi who became infamous for using this technique in the 1920s.

• 1Bernie Madoff's investment scheme that defrauded investors of $65 billion
• 2BitConnect, a cryptocurrency Ponzi that collapsed in 2018
• 3OneCoin, a fake cryptocurrency scheme