BitConnect Closes Exchange as States Warn of Unregulated Sales

Re:BitConnect Closes Exchange as States Warn of Unregulated ... by saas_co_de on Wednesday January 17, 2018 @08:26AM (#16167670)

> Ponzi scheme work because people believe the fraud

That is not always the case. Sometimes you have a Ponzi like Madoff where it may seem legit to investors but most ponzis are blatant and the people involved know it is a ponzi but think they can profit by selling it to greater fools.

Of course they will all express shock and feign ignorance when they are trying to get their money back or defend themselves from the angry people they hustled.

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Re:BitConnect Closes Exchange as States Warn of Unregulated ... by mannykannot on Wednesday January 17, 2018 @09:30AM (#16168102)

In the US, as the Madoff case showed, if it can be shown that you are a sophisticated enough investor to realize that it is probably a Ponzi scheme, your profits can be clawed back and used as partial restitution for the victims. Any scheme that is upfront about what it was doing would significantly lower the bar on making that case.

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Re:BitConnect Closes Exchange as States Warn of Unregulated ... by sseveran on Wednesday January 17, 2018 @12:45PM (#16169998)

In fact this is the case even if you are not a sophisticated investor, since the profits are not yours and are really just stolen property.

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