not exactly a pyramid scheme, its a ponzi scheme and they’re different. Pyramid schemes work by the bottom propping up the layer above. Ponzi schemes work by a revolving door. Both schemes always fail as for it to keep going, it requires more new ppl to be fooled.
This one failed because everyone wanted to draw their money out of it, due to the recent market crash and then realize theres no money there
well the auditors should get jailed time too
Charles Ponzi never intended to create an impossible investment scheme. He had an idea that could have worked to some degree. He wanted to make an arbitrage play on international postal coupons after WWI. There was an arbitrage opportunity but it took some patience and careful study to manipulate. Ponzi did not have the patience and capital to make the arbitrage work. He began taking in lots of investor money by promising impossible returns (doubling money in 90 days). Ponzi invested the proceeds by buying banks and other assets. However, he could not pay the promised returns. After some bad newspaper bad press, regulators shut him down. Ponzi did not flee after his scheme collapsed. He was prosecuted perhaps unfairly and died a broken man.
Ponzi schemes were not invented by Ponzi. These schemes were known as "Peter for Paul" schemes. These schemes were common in the early part of the 20th century. Ponzi was honest compared to most operators of these schemes. Ponzi's scheme grew very large and he was prosecuted so he has the fame that other operators of these schemes did not obtain.