What are the ethical implications of Ponzi scheme?

Answer 1

Ponzi schemes inherently involve deception and exploitation, as they rely on misleading investors about the legitimacy and profitability of the operation. They create a false sense of security, ultimately leading to significant financial losses for late investors when the scheme collapses. Ethically, they undermine trust in financial systems and can have devastating effects on individuals, families, and communities, highlighting the importance of transparency and accountability in investment practices. Such schemes also raise questions about the responsibility of regulators to protect vulnerable investors from predatory practices.