A scheme that is designed to dupe people out of cash or crypto.
Cryptocurrency scams have been growing at an alarming scale and have become a popular method for fraudsters to deceive cryptocurrency investors.
SEC v Shavers was a case where the organizer of an alleged Ponzi scheme promoted an investment opportunity that had falsely promised investors up to 7% per of returns each week.
The scheme further promised investors that the funds would be used to buy more BTC.
Chainalysis estimates roughly $2 billion was generated by one Ponzi scheme alone back in 2019, which involved BTC and Ethereum.
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