"cryptocurrency ponzi scheme"
"but I repeat myself"
Three men have been arrested and charged with masterminding what prosecutors claimed is a $722m cryptocurrency ponzi scheme. Coloradans Matthew Goettsche, 37, and Jobadiah Weeks, 38, have been hit with conspiracy to commit wire fraud. A third man in the case, 49-year-old Joseph Abel, of California, was charged with conspiracy …
SO, grab 700 MILLION income, yet the 'penalty' is five years max - POSSIBLY, but unlikely, and a 250 THOUSAND fine, this doesn't balance out, where's the deterrent, would I take a multi MILLION income deal for a few thousands fine and a couple of years behind bars, or, more likely an open prison country club .....
madness, whatever happened to making the punishment fit the crime
With all that has been said about virtual currencies, how is it possible that people are gullible enough to fork over real money in order to "invest" in funny money.
If you're dealing in nonsense money, you do not sell shares, you give a mining program and tell people to download it and run it. That is the only form of investment that is required.
Anything else and you should just call the cops and keep 'em talking.
Scams will stop working the day after the human race goes extinct.
This particular scam revolved around crypto currencies, but Ponzi schemes have been around for years*, and they'll keep on suckering people for years to come.
* technically they were around for at least a hundred years before Charles Ponzi was even born.
And Ponzi quite possibly didn't even know he was running a con. Per Bulgatz's book, he seems to have been poorly educated and innumerate, and did essentially no bookkeeping - he just let the cash pile up in his office, and would basically grab some when someone wanted to cash out. It was the "advisors" who joined him when his scheme (which involved international postal coupons) became popular who understood what was going on, and profited from it.
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