SCAM

There are many scammers today, bunch of heartless people trying to steal your money. there are plenty of them especially in the world of crypto. Let's start with my personnel story. I joined this amazing world of crypto about 3 months ago and started trying to earn some money. then I found many website promising to give 2-5 times the amount you invest within a month or so I was so much excited that I invested my money in such sites these all sites were scam site that work on ponzi scheme more on that later. I lost all my money and I promised myself that I will never to invest in such sites. weeks later one person Invited me to join this new program (ponzi scheme) on telegram. And I decided to expose these assholes. So I joined the program. Soon A guy messaged me explaining everything what I have to do he is one of the company officials. I told him that I know about this shit. Here are the screenshots of conversation

---

---

Then I pm many users to expose them. Most of them Don't believed me I released the seduction of money had brainwashed them. I was having same problem 3 months ago. I tried to tell people in general text channel where my message is delivered to everyone but soon they banned me. This whole concept is based on ponzi scheme. let me tell you this in detail-

Understanding the pyramid of Ponzi (to divert full of money)

Bernard Madoff, you know? If it does not tell you anything, hang on, you're not going to be disappointed. This guy is currently serving a 150-year jail sentence for leading the biggest financial fraud in history: a $ 65 billion Ponzi pyramid.

A pyramid of what? " Ponzi," yes. Because before Madoff, a certain Mr. Ponzi worked out all this. This is called a Ponzi pyramid.

A little history around the pyramid of Ponzi ...

Boston, 1919. The Italian conqueror Charles Ponzi founded a financial company with a rather special concept, basically: "lend me your money, and you will receive 50% interest 3 months later". The idea seduced.In 1920, 30,000 people rushed to invest in Ponzi society. Very quickly, the funds are in millions of dollars. It is said that Ponzi received $ 1 million a week.

• And with all that money he built a pyramid?
  So no, nothing to do with ancient Egypt. Ponzi chain, Ponzi dynamics, Ponzi pyramid, or Ponzi scheme is called the whole enormous system he created.

• And concretely, what is his scam?
  It's simple. Charles Ponzi is a fraudster, so he will convince his clients to invest money in his company: a fake business of resale stamps (Ponzi never bought a single stamp).

• Why are clients willing to invest?
  Because Ponzi promises to double their performance in three months. Basically, bet 1000 € in January and you will receive 2000 € in March. Interesting eh? Especially when we know that a typical interest rate turns around 2.5% per year.

• How does it pay its customers?
  Here too, it's simple: Ponzi pays its oldest customers with the money of new customers. He therefore pays Peter with the money of Paul, Paul with the money of James, and so on. It is a simple redistribution of wealth!

---

Ponzi starts his scam. He recruits Pierre who agrees to invest 1000 € hoping to multiply his gains. Ponzi pockets those 1000 € for him, and seeks to recruit other victims. Paul discovers the promises of Ponzi, and agrees in turn to invest 1000 €. Thanks to Paul's money, Ponzi can show Pierre that his business is working and that he must continue to invest. Ponzi continues to recruit thousands of new victims, and thanks to the money of the new members, it is possible to show the former members that the money flows.

But when a victim asks to withdraw his money and his profits, the crook is reluctant. He always finds excuses to avoid this, for example: "Do not withdraw your money right away, you will win even more soon! ".
When the Ponzi pyramid crumbles, all victims who have failed to withdraw their bets and winnings have lost everything.
You will understand, this system stands up thanks to new investors, but when there are no new subscribers ... The pyramid collapses. And the scam breaks out in all its splendor.

For the record, the scam of Charles Ponzi lasted 6 months. In early August, the Boston Post revealed that a few years earlier Ponzi had been jailed in Canada. A survey is conducted within his fake business ... and everything is unveiled. He was sentenced to five years' imprisonment, but went out at the end of three. He died ruined in Latin America.

---

And Madoff in all this?

Well Madoff is above all a highly respected man in the New York financial community. It is even called "The Legend of Wall Street".

And you can well imagine that his reputation made him a man of confidence. All his investors were far from suspecting that Bernard Madoff realized the biggest break in the century: divert 65 billion dollars.

Who are its targets?

Unlike Ponzi, Madoff carefully selected investors: clients who invested large sums ($ 1 million minimum) and, above all, did not withdraw their money.

Most of its customers are large European fortunes. Among them, there is even Liliane Bettencourt (the rich heiress of L'Oreal) who invested 22 million euros (in the wind).

What does he promise?

It promises them 10% return per year. It's not too much compared to Ponzi, but it works.

In the mid-2000s, the Madoff fund became the largest in the world: customers who want to get their money back are reimbursed with comfortable interest, while others continue to invest. And everyone is happy.

It could have gone on for a long time ...

• ... but at the end of 2008 (a dozen years later), everything explodes.

• The subprime crisis caused the brutal collapse of the financial markets, most investment funds are ruined ... Investors are panicked and seek to recover their money invested at home Madoff as they are surely losing millions of dollars in their other bank investments, and hope to save some of their fortune.

• As a result, Madoff must find $ 7 to $ 8 billion to reimburse its clients. And of course, there were not as many in the crates.

• Rich investors to average citizens, Madoff will have ruined and manipulated thousands of customers. And the victims have never been compensated.

• For the record, the scam could have lasted a long time because nobody had suspected Madoff. Besides, he is not even arrested, he himself is going to make his confession to the FBI.

• Now you are warned, be wary of interest rates at more than 2.5%.

There are many ponzi schemes in crypto. It's a lot more easier to scam people in the world of crypto

If you want to know more about the pyramid of Ponzi, I invite you to watch this super documentary.

Feel free to resteem, upvote and follow

@varunsangwan