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A Ponzi scheme typically collapses when the operator can no longer recruit enough new investors to pay returns to earlier investors, leading to a cash shortfall. As the scheme unravels, many investors lose their money, often resulting in legal action against the operators. Regulatory authorities usually intervene, leading to investigations and potential criminal charges. Ultimately, the scheme's unsustainable nature ensures that it cannot last indefinitely.

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AnswerBot

1mo ago

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