Ponzi is a fraudulent investment scheme that promises high returns on investment with little risk to investors. The scheme works by paying early investors with the capital raised from later investors, rather than from profits earned by the business or investment itself. This creates a cycle of new investors coming in and their investments being used to pay off earlier investors until the scheme inevitably collapses, leaving most investors with significant losses. The term "Ponzi scheme" comes from the name of Charles Ponzi, an Italian immigrant who became infamous for running one of the most famous Ponzi schemes in history in the early 20th century.







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