DOJ indicts BitConnect founder Satish Kumbhani, who remains at large, alleging he and his co-conspirators obtained ~$2.4B from investors in a Ponzi scheme (Jason NelsonDecrypt)
DOJ indicts BitConnect founder Satish Kumbhani, who remains at large, alleging he and his co-conspirators obtained ~$2.4B from investors in a Ponzi scheme — The U.S. Department of Justice today revealed its indictment against Satish Kumbhani, the founder of defunct cryptocurrency platform BitConnect.
Doj Bitconnect Satish 2.4b Ponzinelsondecrypt
Investing in a Ponzi scheme is a very risky proposition. You can easily lose your entire investment within a few weeks. That’s why it is important to invest your money wisely and with caution. Here are some things you should keep in mind before investing in a Ponzi scheme.
Investing in a Ponzi scheme
Investing in a Ponzi scheme can be extremely risky. While some people do get a small amount of money back in a Ponzi scheme, many others get nothing at all. It is also important to know that Ponzi schemes tend to target more vulnerable people, such as the elderly. The elderly often have less money, live on their own, and are generally still mentally sharp. If you have an elderly parent, you should speak with them about investment options and set up limits for withdrawals.
The first step in preventing yourself from becoming a victim of a Ponzi scheme is to learn as much as you can about the investment you’re considering. There are many red flags that you can look for before investing. You should also do as much research as possible about the company you are considering investing in. The SEC and state regulators have strict regulations that govern investment companies.
Another warning sign of a Ponzi scheme is that the operator will abscond with the money you invest. As soon as the returns due to investors exceed the amount of new investments, the operators will attempt to disappear with the money. In addition, a liquidity crisis will lead to a panic among investors. This panic could trigger a bank run.
The scammers will say that their fees are necessary for them to maintain high returns. These fees are usually less than 1% per year. The goal of a Ponzi scheme is to lure investors with promises of better returns. Once you’ve invested in a Ponzi scheme, you will never receive the returns promised. This is because the schemers only want your money and will eventually be exposed. You can look up other investors’ information to find out who else has invested in the scheme.
A Ponzi scheme usually promises large returns with low risk. Although this sounds like a fantastic opportunity, it’s important to remember that all investments involve some risk. In fact, the risk is greater the more money you invest. For this reason, it’s best to stay away from a Ponzi scheme and focus on investing with legitimate companies instead.
Ponzi schemes have a very long history and are very dangerous. The most famous Ponzi scheme in history was operated by Bernard Madoff, who defrauded thousands of investors and stole over $165 billion. He claimed to be an investment advisor and stockbroker who earned millions of dollars from his investors. His scam started in 1960 and he made more than $100 million per year by the 1980s. By 1990, he was even the chairman of the NASDAQ. Sadly, his fraud ended in the federal medical facility in Butner, North Carolina.
Investing in a Ponzi scheme is illegal and is not a good idea for your money. The total amount of money lost in Ponzi schemes worldwide in 2013 was more than $13 billion. Moreover, the Ponzi schemes are extremely complex, making it difficult to spot them as an outsider. However, if you are a careful investor, you can spot the early warning signs.