Hello !! and thank you so much for your reply! i have not invested yet and I am really not sure anymore, i am one to do a lot of research before I do. And i know what you mean, i actually do listen to wisdom and its important to have as much information as possible. What i dont understand, if its a scam, how can it work for so long and people all making money for a year now? why has this not been stopped ?
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It can’t be stopped by the authorities because it is not within any border. They couldn’t find the names of the individuals nor the places where they have premises. Also they need a complaint “I lost money” to have a reason to act.
Bernie Maddoff’s Ponzi scam kept going for 7 years despite many warnings to the US authorities with full evidence that his so called “trading” was not actually happening. The reality is that there are more scammers than authorities. We don’t need more authorities or rules. They won’t stop scams. What’s needed for people to take responsibilty for themselves, to read learn, listen to others, assess plausibility, and learn the lessons when they screw up.
The way Ponzi schemes work is to pay out the first investors using money received from later investors. If you enter a Ponzi scheme knowing or expecting to be paid because there will be many later investors, (you make money because you took theirs), then you become part of the fraud, and liable to those who lost money.
When a ponzi scheme collapses, the early investors who made a profit are liable to the later investors. The reason is becuase it was never an investment. It’s the same as if a thief breaks in your house, steals your computer and gives it to his girlfriend. She profited wrongly and would be made to give it back. It’s the crime of “receiving stolen goods”. Look out for the lawyers if you ever make a profit.