Wallets & security

Ponzi scheme

Also called: Ponzi · high-yield investment program

In shortA fraud that pays earlier investors with money from new investors, not from real profits.

Crypto Ponzis promise steady high returns from "trading bots", "arbitrage" or "mining". They collapse when new deposits slow down — see the NovaTech case. Guaranteed returns and rewards for recruiting others are the giveaways.