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In a Ponzi scheme money is redistributed from old investors to new ones So is the only money that is really lost is the amount that the promotors rake off?
Wiki User
∙ 14y ago
The older investors get "interest" or "returns" from the newer investors. However, they do not, nor does anyone, get their "principle" back. The "rake off" then is for all intents and purposes, total.
Wiki User
∙ 14y ago
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