Bitcoin Forum

Im closing this thread due to Morons not trying to help the community from scams.
Seems like they want scams to happen at Bitcointalk.org

Christopher Marquet (former Kroll staffer and co-founder of Citigate) of Marquet International has released a report on Ponzi schemes which provides some great statistics and analysis of Ponzi Schemes and their traits.  The report analyzed 329 distinct Ponzi schemes in the United States which have come to light since 2002.

You can read the entire report here, but here are some of the highlights:

Of the 329 distinct Ponzi identified for this report, more than 12 percent of the schemes were carried out by perpetrators who have a prior history of fraud.

Lesson:  As we have previously outlined on this site, one of the fundamental lessons of avoiding a fraudulent investment scheme is to conduct thorough criminal checks on the individual with whom you are investing.

The average Ponzi scheme spanned more than 5 years, with 11 of the 329 schemes lasting more than 20 years.

Lesson: Logic tells us that businesses who have been around for several years must have a successful track record, but this logic may be totally inaccurate.

The average annual rate of return was 282 percent and many perpetrators claimed “guaranteed” or “risk free” returns.

Lesson:  Consider that the average annual rate of return for the Ponzi schemes was 282 percent, while one of the most successful hedge funds in the world, SAC Capital Advisors, boasted annualized returns of 27 percent from 1996 through 2009. If it’s too good to be true, it probably is.

Perpetrators of Ponzi schemes perpetuated an “overly opulent” and sometimes extravagant lifestyle which included waterfront homes, luxury cars, yachts and large philanthropic contributions.

Lesson:  A major warning flag for investors is a “showcase” of wealth.  Investment fraudsters driven by greed and power, often camouflage the legitimacy of their investments by purchasing luxury homes, automobiles, yachts and one-of-a-kind items.

90 Percent of Ponzi schemes are perpetrated by men.

Lesson:  As we all know, men are from Mars, women are from Venus.

Additional resources on steps to avoid a Ponzi scheme:

You really are a moron.

I 100% agree that sites which are advertised purely to steal peoples coins should be shut down in whatever way possible. However there are some out there which are working as they advertise (in that they are returning peoples coins). If you are going to target them, you may as well target the poker, roulette etc sites too, as players will lose money with them too!

Ok Great News Contacted the PSA, other International Organization,  They will be in touch with the owner of the site soon and the Nforce who is the host of bitcointalk.org  They will have to take action on this or the site can be shut down.

So you're risking to shut down the site just to get one over a few ponzi owners? Good job.

Ponzi is illegal because it tricks investors. But only when you don't tell them its a ponzi, otherwise there is no tricking! You know its risky and are accepting the risk by sending bitcoin. Now it has turned from a scam into a gambling game.

I'd also like to mention that you've been caught stealing/trying to steal bitcoins from primedice several times. Is this a case of remorse and now you are overly anti-scam?

even if these sites "may" return coins now, they will not forever they are buying your trust with that 25 or whatever % they offer.  And Will keep your coins once they hold enough at once to satisfy their greed.

No.

One ponzi had over 70btc in its wallet yesterday, now 2btc. Nobody ran away, they sent all the payments.

Spixel is not enough, they are going big.  This is going to hurt rep of bitcoin cause bitcoin talk gets like 187,000 visits a day.  People were calling bitcoin a ponzi and using ponzi with bitcoin right now, is not going to help it. 

Oh wow! 70 btc you say. pshhh  your thinking small time friend.
They will be waiting for a larger amount to be confirmed to them.

But some smaller ones make take the first thing you send, you can't know.

What is a Ponzi scheme?

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business.
Why do Ponzi schemes collapse?

With little or no legitimate earnings, Ponzi schemes require a consistent flow of money from new investors to continue. Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.
How did Ponzi schemes get their name?

The schemes are named after Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. At a time when the annual interest rate for bank accounts was five percent, Ponzi promised investors that he could provide a 50% return in just 90 days. Ponzi initially bought a small number of international mail coupons in support of his scheme, but quickly switched to using incoming funds from new investors to pay purported returns to earlier investors.
What are some Ponzi scheme "red flags"?

Many Ponzi schemes share common characteristics. Look for these warning signs:

    High investment returns with little or no risk. Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. Be highly suspicious of any "guaranteed" investment opportunity.
    Overly consistent returns. Investment values tend to go up and down over time, especially those offering potentially high returns. Be suspect of an investment that continues to generate regular, positive returns regardless of overall market conditions.
    Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the SEC or with state regulators. Registration is important because it provides investors with access to key information about the company's management, products, services, and finances.
    Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
    Secretive and/or complex strategies. Avoiding investments you do not understand, or for which you cannot get complete information, is a good rule of thumb.
    Issues with paperwork. Do not accept excuses regarding why you cannot review information about an investment in writing. Also, account statement errors and inconsistencies may be signs that funds are not being invested as promised.
    Difficulty receiving payments. Be suspicious if you do not receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters routinely encourage participants to "roll over" investments and sometimes promise returns offering even higher returns on the amount rolled over.

If you are aware of an investment opportunity that might be a Ponzi scheme, contact the SEC by phone at (800) 732-0330 or submit a tip online at sec.gov/complaint/tipscomplaint.shtml.
What steps can I take to avoid Ponzi schemes and other investment frauds?

Whether you are a first-time investor or have been investing for many years, there are some basic questions you should always ask before you commit your hard-earned money to an investment.

The SEC sees too many investors who might have avoided trouble and losses if they had asked questions from the start and verified the answers with information from independent sources.

When you consider your next investment opportunity, start with these five questions:

    Is the seller licensed?
    Is the investment registered?
    How do the risks compare with the potential rewards?
    Do I understand the investment?
    Where can I turn for help?

For more information, check out these resources: SEC Enforcement Actions Against Ponzi Schemes; Ponzi Schemes Using Virtual Currencies; Ask Questions; Avoiding Fraud; Affinity Fraud; Social Media and Investing – Avoiding Fraud.
What are some of the similarities and differences between Ponzi and pyramid schemes?

Ponzi and pyramid schemes are closely related because they both involve paying longer-standing members with money from new participants, instead of actual profits from investing or selling products to the public. Here are some common differences:

 
   

Pyramid Scheme
   

Ponzi Scheme

Typical "hook"
   

Earn high profits by making one payment and finding others to become distributors of a product. The scheme typically does not involve a genuine product. The purported product may not exist or it may be "sold" only to other people who also become distributors.
   

Earn high investment returns with little or no risk by simply handing over your money; often the investment does not exist or only a small percentage of incoming funds are actually invested.

Payments
   

Must pay a one-time or recurring participation fee and recruit new distributors to receive payments.
   

No recruiting necessary to receive payments.

Interaction with original promoter
   

Sometimes none. New participants may enter the pyramid scheme at different levels.
   

Promoter generally interacts directly with all participants.

How the scheme works
   

Funds from new participants are used to pay recruiting commissions to earlier participants.
   

Funds from new investors are used to pay purported returns to earlier investors.

Collapse
   

Fast. An exponential increase in the number of participants is required at each level.
   

May be relatively slow if existing participants reinvest money.

 

For more information regarding pyramid schemes, please read Beware of Pyramid Schemes Posing as Multi-Level Marketing Programs.

Look guys! He knows how to copy paste!

Exactly, you should be ashamed of yourself.
Also, you know it's a ponzi in advance so don't enter with money you can't afford to lose!

That is a multitude more BTC than any other bitcoin ponzi has achieved. A scammer would have taken it if this was their intention.

There is over 400btc received by this ponzi, with 1% fee he is making it worthwhile without having to scam.

You have zero proof to backup your accusations.

You are truly one dumb cunt

Ponzi's are not a problem, New members with new ponzi schemes are, Some can be pure scam.
HYIP ponzi's are worst as you will never knew how much they have in their account, they just try to collect more and more money by giving 1-5% daily per user.

I'm utterly appalled this fucking tool has the gall to risk bitcointalk just to crusade against a few sites he disagrees with by way of OPINION.

Hahahaha this is true

6k bitcoin? Where did you get this number from? I don't follow  ???

The incredibly large amount of donations they have received

It is your responsibility to keep on the look out for scams not the site owners/moderators they are not your baby sitter always remember if something sounds to good to be true then it most likely is.

Spixel shut up cause your running one of the scams.  I dont care if bitcointalk.org shuts down, There are many Ops that are not happy with this Ponzi scams being posted on the forum go the the other thread so see this.  The Mods have not done anything to stop newbies making easy websites and spamming them crazy on here. Like I said if nothing gets done about the ponizi schemes cause there not gambling there investing.  Difference!!!!!

Then Ill take appropriate action, to get the site owner to do so about it.  Im sure there are many happy I will fight for this but there to wuss to show themselves.  They afraid to lose business, the only one with a set of balls to call them for what they are were Stunna from PD.  

So you little man STFU ;D

Too many scam ponzi out there now every one choose nicely and then only play

You what this thread Ill close it, since no one will fight to protect the BTC community, everyone is out for themselves and this is why MTgox went to shit because idiots like them fucked up the Bitcoin rep.

example http://ponzi.io/

Total deposited (BTC)  348.568464  

saw higher than 70 at points.

Arrogant, they dont care about other people, they care for there own pockets.  This is why the world is in shit, just like the politicians that run the country. 

Please stop running your dumb mouth

There are people who aren't interested in the ponzi games, just as well as there are people that are[/b]

If you aren't interested, that's great, but don't ever assume it's your responsibility to babysit or otherwise make decisions for others in the form of attempting to have shit shut down

you and spixel are Ponzi lovers, go check there post there hoping to make money from your loss.  I even screen shot your post just in case you try to delete it

Really? Cause I currently have no BTC in a ponzi. I entered once yesterday and got paid after 4 hours.

You are an idiot who speaks shit like its the truth. Accusing everyone of being scammers with 0 proof when there's proof you are a scammer. I guess you don't like potential competition to ruin your scams????

They dont want your little BTC, There going for the big pot you dimwitt,   ;D

now prove it

cya

The majority of these ponzis are gambling games, labeled as such. If you gamble on such, you can do so. It isn't your job to police the internet.

Proof is when the people scream I didnt get my payout, By that time there is no prooof, Thats why is illegal to run it without it being registered

I agree with you, but why let people get hurt, so they can run from bitcoin and give it bad rep??????

Correction, I'm a lover of easy profit.

I have never deleted a post and could care less if you screenshot them till your mother comes home and asks why you're still in the basement on the computer


You're right - it's illegal to run such schemes under FIAT currency.  Bitcoin however is entirely unpoliced.

Also,

Nice Blog Catlife too bad you dont use it to protect people more.

How does it give bitcoin a bad rep? People can do what they want with their money. If they want to gamble on a ponzi game who cares? You certainly shouldn't. I say game, because you are told its a ponzi. REAL ponzi scams pretend to be genuine investments.

Are you really short-sighted enough to think the entire Bitcoin community is going to be hurt because of insignificant gambling schemes on one sector of the internet, ie Bitcointalk?

You keep all this bullshit up under the facade you are trying to "protect the Bitcoin community" but in reality this is all just a bigoted crusade against a dozen or so websites that haven't actually broken any laws

The whole thing is really quite lulzy I must admit


It isn't my job, nor yours, to "protect people"

All this bullshit you're spewing basically tells everybody that you think we're all fucking morons incapable of thinking for ourselves

Buddy, I REALLY don't need your investment advice nor protection.  I have an IQ of 140 and I'm perfectly capable of making my own choices

Catlife it was a bluff to make the Mods put more policies against this.  I wasnt going to do that.  Damn you just ruined it!!!!

Yet again, people can think for themselves, your help is noted yet unneeded =/

so why u care so much if I help the ones that need the right guidance?

I am bothered that you are imposing on everybody

And I said prior - you are operating under the guise that you are helping people

But what you are really doing is venting your grudge on these various websites and helping no-one

Show me where anybody has said "Thank you Zolace for taking the time to tell me that I need to be careful when I choose to gamble.. - as if I have no brain and need your "guidance"

You don't seem to realize you're actually just insulting everybody saying we can't think for ourselves and need you to do it for us..

I agree with you, so I dont need to hear a thank you for doing a good deed.  Im trying to get the ponzi out of the gambling thread, not really get the site closed down.

Here's a better idea, get over it, move on, find some way to make some money for yourself without "trying to get ponzi out of the gambling thread" and ruining it for those who are using those sites

Ahh you speak the truth Newbie, to leave them alone, hmmm this should make the People with an High IQ figure your hidden motive.