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Because thse ponzi scheme operators receive Funds from A, give it to B, against getting fund from B, they extend the same to C and the process goes on. Once there is any bottleneck or dearth of funds from the investors, the whole system falls like card house. The Operators then have no option left than to close down their shutters, ruining the poor small investors the maximum. From this point of view, ponzi schemes are declared illegal all over the world.

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