An investment fraud in which the attacker collects funds from investors with promises of high returns, and uses the collected funds to pay certain previous investors back to validate his claims. After collecting enough, the scammer disappears with the funds.<\/p>\n","protected":false},"excerpt":{"rendered":"
An investment fraud in which the attacker collects funds from investors with promises of high returns, and uses the collected funds to pay certain previous investors back to validate his claims. After collecting enough, the scammer disappears with the funds.<\/p>\n","protected":false},"author":76,"featured_media":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"_cryptoslate_glossary_part_of_speech":"noun","_cryptoslate_glossary_phonetic_spelling":"PON-zee skeem","_cryptoslate_glossary_example_sentences":["The Ponzi scheme used money from new participants to pay supposed returns to earlier investors.","Promises of guaranteed high yields were a warning sign of a possible Ponzi scheme.","The fraud collapsed when new deposits could no longer cover withdrawals.","Investigators found no legitimate business activity supporting the Ponzi scheme\u2019s advertised profits.","Blockchain records can trace payments, but they do not prevent a promoter from running a Ponzi scheme."]},"glossary_topic":[83439],"acf":[],"yoast_head":"\n