Pyramid scam in San Pedro: what is a Ponzi scheme and how to detect it

The case of a new ponzi scheme who was reported in the town Saint Petersparked concern about the resurgence of this type of scam. It is that approximately 20,000 people were victims of this network, who had invested their savings in the trading platform Rainbowex to obtain high returns in dollars.

For this reason, different experts once again explained how these types of scams work. It should be noted that there are several types of pyramid schemes, but they have one fundamental characteristic in common: You can never talk about real profits or profitability, because there is no investment.

For a Ponzi scheme to work, It depends on new contributors continually enteringsince if the cycle stops, the silver stops entering.

This means that the returns cannot be paid and, therefore, that the system comes to an end. It is, then, a scam where funds are redistributed between new and old contributors of money, which is why the profits are non-existent.

To the first to enter these schemes, they are deliberately paid the returns that were promisedvery high and lacking existence in the market, to gain try to gain legitimacy and generate a kind of contagion effect.

The problem is that when people’s income is cut off, or even when its real functioning is detected, this system falls, leaving the vast majority of people without profits and without your money invested. Only a few actually benefit, basically, from stealing from those who joined later.

Generally speaking, if it promises very high profits but with low initial investments, something catches your attention. The fact is that any investment that promises a high return involves risk, and generally, the safer an investment is, the less return in profits it makes.

The case of Rainbowex, the San Pedro scam

The platform created and promoted by Knight Consortium Foundationpromised to double investments in a month and a half and even offered returns of between 1% and 2% a day in dollars.

There are already 50 victims who asked for his advice in the face of the scandal generated by the platform created and promoted by the Knight Consortium Foundation, where investments were promised to double in a month and a half and even returns of between 1% and 2% were offered. daily in dollars.

Although initially it seemed like a good deal, the victims became suspicious when it began to emerge that the pyramid could collapse. This caused chaos in the city. Many of the neighbors had invested all their savings and among the victims were retirees.

“There are people who have not been able to withdraw the money for three weeks. When they cannot do so, they are worried and that worry led to fear,” said Erdaire, lawyer for 50 victims.

The platform began to become popular four years ago, first with “word of mouth” and then, due to viralization, many entered on their own.

Until this Monday afternoon, no formal complaint was registered, although it is estimated that the first lawsuits would reach Justice between Thursday or Friday of this week.