Wednesday, 22 August 2012

Another Ponzi scheme fails. Like they all do.

Yet another Ponzi scheme collapses. This time it's ZeekRewards that's gone under, leaving perhaps 1 million people out of pocket.

According to, the closure of ZeekRewards by the US Securities and Exchange Commission:
"came as many began to question the legality of the operation and whether its promised 1.5% daily returns were simply ‘too good to be true.'"
ABC News quotes one of the SEC investigators as saying:
"The obligations to investors drastically exceed the company's cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors," said Stephen Cohen, an associate director of the SEC's enforcement division. "ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing. In reality, their cash was just going to the earlier investor."
Just like all the other schemes that collapse they have one thing in common: promises of financial returns that are just unbelievable. No legitimate investment scheme can offer investors 1.5% per day.

Just like Eurex Trade can't really offer 2.9% daily. It's impossible. They're Ponzi schemes and sooner or later they'll collapsee. They always do.

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