Ponzi Scheme

Here is an article to explain how the ponzi scheme started.

My comment
A ponzi scheme usually offer an attractive return. The operator take the money from the investors to pay back the earlier investors. As long as the ponzi scheme continues to grow exponentially in size, the operator is able to carry on. During this time, the operator continues to siphon off the money. When the new money stops coming in, the ponzi collapses.