Are they? What about in video games? Eve Online had a gigantic ponzi scheme where players stole vast amounts of in-game currency. Is that illegal? I'm not being snarky, I genuinely don't understand when it is and is not illegal.
AFAIK EVE has a TOS saying that everything that happens in the game is fictional and that ISK is not real money. Essentially all players have waived their right to complain, although it might be possible for a court to overrule that.
I think plenty of Bitcoiners were trying to have it both ways, telling the IRS and SEC that Bitcoin is not real money while cashing out their schemes on MtGox at the same time. As with any license to steal, this was too good to be true.
But there are plenty of black market sites where you can convert video game currency to and from cash. It's an extra step, but it's trivial to do. There are even sites that aggregate video game black markets and show the best conversion rates and most trusted services.
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As was demonstrated, Ponzi schemes are already illegal, regardless of denomination.
No new laws or regulations required.
99% of the time in the USA, blatant fuckery is already illegal six ways from Sunday. The last thing we need are more laws.
Are they? What about in video games? Eve Online had a gigantic ponzi scheme where players stole vast amounts of in-game currency. Is that illegal? I'm not being snarky, I genuinely don't understand when it is and is not illegal.
AFAIK EVE has a TOS saying that everything that happens in the game is fictional and that ISK is not real money. Essentially all players have waived their right to complain, although it might be possible for a court to overrule that.
I think plenty of Bitcoiners were trying to have it both ways, telling the IRS and SEC that Bitcoin is not real money while cashing out their schemes on MtGox at the same time. As with any license to steal, this was too good to be true.
But there are plenty of black market sites where you can convert video game currency to and from cash. It's an extra step, but it's trivial to do. There are even sites that aggregate video game black markets and show the best conversion rates and most trusted services.
Does Bitcoin make it easier to get away with a Ponzi scheme?
If you're some kind of anonymous money-laundering genius perhaps.
Smithers! Have that bozo start up the Tor reactor!
I'm a little bit sad, because this was one of the funnier things I've said in my life.