U.K. Bitcoin trader to Pay $572 Million Penalty for perpetrating a Ponzi Scheme

[ConnerDalfino]

A lot of scams are in Bitcoin, though it is not good. But it shows that Bitcoin will be the leader in the crypto industry, This also serves as an answer to all those people who think altcoins can come even near the power of Bitcoin.
This also raises a question that whether robberies will cease to exist as bitcoin has already surpassed gold.

Benjamin Reynolds, a renowned crypto trader from the United Kingdom, has been compelled by the U.S. federal court in New York to pay $572 million for conducting a Bitcoin Ponzi scheme.

What are your thoughts on this?


_{Source
https://mycryptoparadise.com/u-k-bitcoin-trader-to-pay-572-million-penalty-for-perpetrating-a-ponzi-scheme/}

[TheNineClub]

It's good in a sense that it will, hopefully, discourage others from doing such things, however, this could bring about more government regulations in the name of reducing such activities, but those come at a cost to how freely Bitcoin and other Cryptocurrencies are operating and in the end, the true nature of why some of them have been created. It's a double-edged sword. As for this being proof that Bitcoin will be the leader in the crypto industry, well, it actually is at the moment, but that doesn't mean that scams do not happen in other serious cryptocurrencies like Ethereum.

[bryant.coleman]

Another example of classical crypto-based PONZI scheme, which was very frequent during the 2013-17 period. I myself fell victim to a few of such schemes during 2013 and lost huge amounts of my hard earned money in them. These people always think that the law enforcement authorities can't touch them. After perpetrating scams, they simply migrate to some other country, where they will again do the same thing. It is heartening to know that the law has caught up to at least one among the tens of thousands of scammers.

[odolvlobo]

What are your thoughts on this?

I don't know why they call him a "renowned crypto trader" when he is clearly not that.

[MrcMrc]

Ever since the advent of cryptocurrency a lot of scam have happened in the system why because since bitcoin is anonymous and it transaction can not be traced in some cases scammers sees it as a safe heaven to perpetrate their scamming activities and this is one of the reason governments are against decentralized financial systems such as blockchain.  We have seen so many ponzi schemes within the bitcoin network but the fact is it is the responsibility of the victims to do due diligence searce before venturing into any form of investment on the cryptocurrency space since users are anonymous and hard to trace.

[Kittygalore]

I would say that if Reynolds lobbied some of the senators on the US congress, I think that he would've been given a pass for doing the Ponzi scheme because there are a lot of MLM in USA that have a government backing so my hunch is that Reynolds isn't affiliated with any high ranking official so he is targeted and got convicted. I guess if Reynolds has a lot of money that he got from the Ponzi scheme, I think that the penalty is a just one.

[lifeforcepools]

How much money did he get with this ponzi scheme?

[Josefjix]

It is good he is made to face the consequences of his  scamming actions, such scams were conducted in Nigeria through Tron and Ethereum last year. The lied to gullible victims that they were conducting Smart contracts. They swindled a handful of those coins from there through these Ponzi schemes leaving the victims traumatized and helpless.

[Upgrade00]

A lot of scams are in Bitcoin

Scams are not in Bitcoin, it is actually more secure than a whole other number of assets which are open to massive printing and forgery. The scam narrative is spread by anti Bitcoin media to discourage people from using it.

This also raises a question that whether robberies will cease to exist as bitcoin has already surpassed gold.

How has Bitcoin surpassed gold?
Also, you would need to give more information on this, I see no relationship between the rate of robberies and Bitcoin adoption