$7 000 USD

MARCH 2014

UNKNOWN

PONZICOIN

DESCRIPTION OF EVENTS

"Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"

 

"The only Ponzi with an escrow reserve!" "Deposit between 0.01 and 0.1 for your chance to receive a 120% return!" "Rounds will automatically restart, with plenty of notice, when deposits begin to slow down." "The last deposit of each round is always guarenteed their 120% payout!"

 

"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."

 

"If they had sticked to their own rules and payed out the earliest n players winnings until the Jackpot is empty then it would have been perfectly ok, what has happened here is after a few successful rounds of the game they suddenly just took the jackpot and ran with it."

 

"I'm contacting privacyguardian.org (the registrar he used). They have a special form for reporting abuse. Will see how that goes."

 

"I feel so stu.Pid, i deposited 0.8 that was all i have. [I] lost 1btc to s.cams nd ponzis nd now probably 0..7 more, i am really done with it! i still have some hope that it is just a technical pb."

 

"It sucks to lose a bet, but I don't see how anyone here was "scammed." This was a well-advertised Ponzi scheme that paid out more than it took in, until it collapsed. Hopefully it was at least educational."

 

"We are chocked not bc the ponzi stopped from lack of investors, it is the 7th round... But bc the owner ran away with the money without paying anyone. From the outside we may look like freaks but please understand that he built trust very efficiently. I have still hope of getting back my money, i evaluate the probability at 7%"

 

"This is darwinism in its purest form. You are willingly participating in a ponzi scam, which make you a bunch of scammers as you want to profit from earlier investors money, and thus you deserve to be scammed and lose everything."

 

"At least Maddoff wasn't a random nick on the internet connecting through Tor and registering its website through a proxy. You really need to explore a new level of retardness to "invest" in this stuff."

 

"In the interest of full disclosure, I lost .3btc to this guy, I made the decision to deposit based off having done it twice before without incident and because the developer wasn't hard to get a hold of and was in fact answering my PM's quite timely re-assuring me this is an isolated incident, referencing the times things went down without a skitch. I'm prepared to charge it to the crypto-game, because I know I always should be if I'm willing to partake in something I ultimately have no control over after those funds leave mine."

 

"With their stupidity and greed ponzi participants are just giving an incentive to scammers to keep scamming, and thus I strongly believe that no pity and no mercy is deserved to those who lose money to these type of blatantly obvious scams."

PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.

HOW COULD THIS HAVE BEEN PREVENTED?

PonziCoin was a literal and honest smart contract ponzi scheme. The rules were straightforward and users came in droves to play. As far as we can tell, no criminal action was taken and users generally appear to have accepted their losses.

 

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Sources And Further Reading

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