raeky
Dominant
- Joined
- Jan 31, 2005
- Posts
- 380
- Location
- West Virginia, USA
- Society
- Soldiers of Fortune - C
- Avatar Name
- Racona raeky Donga
The recent Ponzi scam (link) that was recently purpotrated on the Entropian citizens leaves me to wonder exactly how widespread this was. Here is my "consierpciy" theory.
1. The main public guy who is doing the scam, collecting the money and paying out individuals.
2. This person then uses friends to "invest" in his scam like everyone else except in larger amounts of money, thousands of peds.
3. This person then pays out everyone in the first inital group with the friends large ped "investments," except these large investers.
4. They then wait for the word to spread and more investers to come, they then contiune to get investers and pay out others. Hopefully many of the inital investers will decide to reinvest, or not withdrawl their peds yet, send them through another "cycle"
5. When there is a sufficent amount of money in the fund, the inital friends get their payout at amazeing profit. 400-500% or so. These friends then keep their major profit and reinvest a few thousand more peds.
6. At this point the whole system colapses. Enough public attention has been brought to it MindArk takes notice and bans the inital scammers account.
7. They then start investigateing and traceing the money. Hopefully there was so many transactions and so much money being moved arround and split up and sent to so many accounts that mindark will be unable to find out where the majority of it went. A huge chunk of it went to these inital major funders, friends of the scammer.
8. MindArk just declares it a scam, and locks the account freezeing all the money, but not trying to punish any of the "investers" who made major profits from the scam. So these people who could of made thousands or even tens of thousands of peds will go unpunished and be able to keep their illgot gains.
This is a very real possiblity with this scam.
I received this PM on EP:
A month ago this wasn't very public, according to the scammer's own site it didn't go "public" until feb 10th or so. This would mean MudKicker was in contact with the scammer before the scammer even decided to start taking investers. This makes my conspercy theory even more possible. Although I have no proof of MudKicker's involvement or anyone elses. it does raise very intresting questions.
Q: What would be a realitively safe way to make several thousand peds for a few of your friends and not expose them to much risk?
A: A new avatar that started a scam like a Ponzi scam, and your friends became the inital investers and received windfall profits from the scam.
The inital friends would be aware that it was a scam, and that they'd be paid back with scammed money, but since they'll be acting like the other people who got scammed, and individually they wouldn't be getting a major % of the scammed money, but collectively they could get a big bulk of it. And have almost no risk of being identified as part of the scam, since so many people would of made profits from it.
I think this is far more serious then one scammer... I think it is possible some of the investers where part of the scam. And I think mindark should do a very deep investigation of this scam. Everyone who participated, knownly or not, received profit from a scam. This is a serious thing.
(excuse all my spelling mistakes, its late ;-))
1. The main public guy who is doing the scam, collecting the money and paying out individuals.
2. This person then uses friends to "invest" in his scam like everyone else except in larger amounts of money, thousands of peds.
3. This person then pays out everyone in the first inital group with the friends large ped "investments," except these large investers.
4. They then wait for the word to spread and more investers to come, they then contiune to get investers and pay out others. Hopefully many of the inital investers will decide to reinvest, or not withdrawl their peds yet, send them through another "cycle"
5. When there is a sufficent amount of money in the fund, the inital friends get their payout at amazeing profit. 400-500% or so. These friends then keep their major profit and reinvest a few thousand more peds.
6. At this point the whole system colapses. Enough public attention has been brought to it MindArk takes notice and bans the inital scammers account.
7. They then start investigateing and traceing the money. Hopefully there was so many transactions and so much money being moved arround and split up and sent to so many accounts that mindark will be unable to find out where the majority of it went. A huge chunk of it went to these inital major funders, friends of the scammer.
8. MindArk just declares it a scam, and locks the account freezeing all the money, but not trying to punish any of the "investers" who made major profits from the scam. So these people who could of made thousands or even tens of thousands of peds will go unpunished and be able to keep their illgot gains.
This is a very real possiblity with this scam.
I received this PM on EP:
edited out by MindBuster said:
A month ago this wasn't very public, according to the scammer's own site it didn't go "public" until feb 10th or so. This would mean MudKicker was in contact with the scammer before the scammer even decided to start taking investers. This makes my conspercy theory even more possible. Although I have no proof of MudKicker's involvement or anyone elses. it does raise very intresting questions.
Q: What would be a realitively safe way to make several thousand peds for a few of your friends and not expose them to much risk?
A: A new avatar that started a scam like a Ponzi scam, and your friends became the inital investers and received windfall profits from the scam.
The inital friends would be aware that it was a scam, and that they'd be paid back with scammed money, but since they'll be acting like the other people who got scammed, and individually they wouldn't be getting a major % of the scammed money, but collectively they could get a big bulk of it. And have almost no risk of being identified as part of the scam, since so many people would of made profits from it.
I think this is far more serious then one scammer... I think it is possible some of the investers where part of the scam. And I think mindark should do a very deep investigation of this scam. Everyone who participated, knownly or not, received profit from a scam. This is a serious thing.
(excuse all my spelling mistakes, its late ;-))
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