Ponzi Schemes and Affinity Fraud

Jason Scharfman ()
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Jason Scharfman: Corgentum Consulting, LLC

Chapter 5 in The Cryptocurrency and Digital Asset Fraud Casebook, Volume III, 2025, pp 93-116 from Springer

Abstract: Abstract This chapter delves into the rise of cryptocurrency affinity fraud, a deceptive tactic where scammers exploit trust within tight-knit communities to defraud investors. Leveraging shared beliefs or community bonds, fraudsters target vulnerable populations who trust the scam due to their perceived alignment with their cultural or religious values. Using several high-profile cases, such as the Jay Mazini cryptocurrency fraud targeting Muslims and the Forcount Ponzi scheme aimed at Spanish-speaking communities, this chapter analyzes the methods used by fraudsters to manipulate trust and explores the regulatory and legal actions taken to combat such schemes. Insights from data and case studies emphasize the growing need for education and preventive measures within these communities.

Keywords: Affinity fraud; Religious scams; Forcount ponzi; Regulatory actions; Canada cryptocurrency; Guo Wengui (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-84108-8_5

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DOI: 10.1007/978-3-031-84108-8_5

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