Ponzi Scheme

A Ponzi scheme is a fraudulent investment operation where returns are paid to earlier investors using funds collected from newer investors, rather than from legitimate business profits. These schemes create the illusion of high returns to attract more participants, but they inevitably collapse when the flow of new money dries up. In the crypto space, Ponzi schemes have taken the form of fake yield platforms, fraudulent staking programs, and scam tokens promising unrealistic returns.