Ponzi scheme is a type of investment fraud named after Charles Ponzi.
A classic Ponzi scheme have virtually no income-generating from its business and the schemer uses new investors’ funds to payout existing investors. Ponzi scheme promises its investors with little or no risks and are encouraged to recruit new members.
The Ponzi schemer focus on recruiting new investors to pay off existing investors and using the rest of the money for personally gain. Read more on what is a Ponzi scheme.
A Ponzi scheme is different from a Pyramid Scheme.
Read more on Ponzi Scheme and how it work.
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