What does Ponzi scheme mean?

Ponzi scheme is the name of investment fraud in the financial sector. Many illegal pyramid schemes use this trick to collect money. This trick was invented by a speculator named Charles Ponzi.

Ponzi scheme is also called Wang's "robbing Peter to pay Paul" and "empty gloves and white wolves" in China. In short, it is to use the money of new investors to pay interest and short-term returns to old investors, thus creating the illusion of making money, and then defrauding more investment.

Ponzi scheme is the name of investment fraud in the financial field, the originator of pyramid schemes, and is used by many illegal pyramid schemes to collect money. This scam was invented by a speculator named Charles Ponzi. Ponzi scheme is also called "robbing Peter to pay Paul" and "empty gloves and white wolves" in China. In short, it is to use the money of new investors to pay interest and short-term returns to old investors, thus creating the illusion of making money, and then defrauding more investment.

Charles Ponzi, an Italian speculator who lived in 19 and 20th century, immigrated to the United States in 1903. 19 19, he began to plot. The swindler invested in a nonexistent enterprise, promising investors a 40% profit return within three months. Then, the cunning Ponzi paid the new investor's money as quick money to the initial investor to lure more people into being cheated. Due to the generous returns of early investors, Ponzi successfully attracted 30,000 investors within seven months. The plot lasted for a year, and only those who were carried away by interests came to their senses. Later people called it "Ponzi scheme".