October 16, 2019, 1:49PM EDT
• 5 min read

Bitcoin Ponzi schemes, magical thinking, and the S(H)AFT

Quick Take

  • New CFTC lawsuit claims that defendant operated Ponzi scheme using pooled bitcoin and promising 300 percent returns in 3 weeks 
  • In addition to (allegedly) being a Ponzi scheme, CFTC says defendants violated registration requirements of the Commodities Exchange Act
  • While SAFT concept isn’t the same thing as a fraudulent Ponzi scheme, there’s arguably an element of magical thinking that bears some similarity to a belief that 300 percent returns in 3 weeks is completely legit

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