PonziCoin Early Exit Suspected - Revision history

Azoundria: Another 30 minutes. Further research on Reddit thread. Integrating information from Business Insider article in both revisions. Incorporated multiple Reddit crossposts. Published on Twitter.

2024-03-11T21:03:34Z

Another 30 minutes. Further research on Reddit thread. Integrating information from Business Insider article in both revisions. Incorporated multiple Reddit crossposts. Published on Twitter.

← Older revision		Revision as of 15:03, 11 March 2024
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	{{Case Study Under Construction}}		{{Case Study Under Construction}}
	[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]		[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]
	PonziCoin encouraged users to send their bitcoin to BitcoinTalk user Vortuarackne, in exchange for the ability to receive more bitcoin back (or lose their funds if they were too late). In one of these sessions, Vortuarackne stopped paying out and panic ensued. Vortuarackne returned later to report that their server had been hacked and taken offline, refunded all affected users, and resumed the ~~scheme~~ for another week.		PonziCoin encouraged users to send their bitcoin to BitcoinTalk user Vortuarackne, in exchange for the ability to receive more bitcoin back (or lose their funds if they were too late). In one of these sessions, Vortuarackne stopped paying out and panic ensued. Vortuarackne returned later to report that their server had been hacked and taken offline, refunded all affected users, and resumed the game for another week.

	== About PonziCoin ==		== About PonziCoin ==
	"Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"		PonziCoin was run through a website and a BitcoinTalk post, made by BitcoinTalk user Vortuarackne. In the post, the rules of the game were explained. The system would pay back early participants with a profit from those funds deposited by later participants as new funds became available. A 5% fee was taken from each deposit, and this was used to provide a guaranteed payout to the very last participant to make a deposit. The platform operates on a simple premise where players participate in games by placing bets within specified investment limits<ref name=":4">[https://www.businessinsider.com/ponzicoin-2014-3 UPDATE: PonziCoin Organizer Claims Site Was Hacked As Relieved Users Get Refunds - Business Insider] (Accessed Mar 11, 2024)</ref>. As more individuals invest, earlier participants receive returns at a rate of 120% of their initial investment<ref name=":4" />. The system relies on a continuous influx of new players to sustain payouts, creating a cycle where increased participation leads to faster and larger returns<ref name=":4" />. However, if no payouts occur within an hour, all deposits are lost, prompting a reset of the game<ref name=":4" />.<blockquote>"Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"

	"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."		"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."</blockquote>

	Homepage:<ref name="ponzicoinarchive-5922" /><blockquote>The only Ponzi with an escrow reserve!		Homepage:<ref name="ponzicoinarchive-5922" /><blockquote>The only Ponzi with an escrow reserve!
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	As articulated, a ponzi scheme is a payment model where payments to existing investors are made using the funds of new investors. This model is never sustainable, and most individuals investing in a ponzi scheme will lose their funds.		As articulated, a ponzi scheme is a payment model where payments to existing investors are made using the funds of new investors. This model is never sustainable, and most individuals investing in a ponzi scheme will lose their funds.

	~~However, when~~ engaging in a ponzi scheme online, there is an additional risk in that the operator of the scheme may run off with ~~additional~~ funds of users. In this case, Vortuarackne agreed to take a 5% cut of all incoming payments, however there was no way to hold them to their agreement.		When engaging in a ponzi scheme online without a smart contract, there is an additional risk in that the operator of the scheme may run off with funds of users. In this case, Vortuarackne agreed to take a 5% cut of all incoming payments, however there was no way to hold them to their agreement and a reasonably strong opportunity to run away with more funds.

	== What Happened ==		== What Happened ==
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	\|PonziCoin Announcement		\|PonziCoin Announcement
	\|The PonziCoin is first announced on BitcoinTalk<ref name=":0">[https://bitcointalk.org/index.php?topic=474730.0 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round! - BitcoinTalk] (Nov 29, 2023)</ref>. "Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"		\|The PonziCoin is first announced on BitcoinTalk<ref name=":0">[https://bitcointalk.org/index.php?topic=474730.0 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round! - BitcoinTalk] (Nov 29, 2023)</ref>. "Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"
			\|-
			\|March 9th, 2014 11:38:54 AM MDT
			\|Discussion And New Round Announcement
			\|Vortuarackne announces a new round with 200% payout<ref name=":5">[https://bitcointalk.org/index.php?topic=474730.msg5607476#msg5607476 Vortuarackne - "Any confirmed, unpaid deposits from round #6 which were made before the above announcement will be refunded. We need to get this party started again - it's slowed down too much!" - BitcoinTalk] (Accessed Mar 11, 2024</ref>. Any deposits to round 6 before the announcement will be refunded<ref name=":5">[https://bitcointalk.org/index.php?topic=474730.msg5607476#msg5607476 Vortuarackne - "Any confirmed, unpaid deposits from round #6 which were made before the above announcement will be refunded. We need to get this party started again - it's slowed down too much!" - BitcoinTalk] (Accessed Mar 11, 2024</ref>.
	\|-		\|-
	\|March 9th, 2014 2:13:43 PM MDT		\|March 9th, 2014 2:13:43 PM MDT
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	\|Websites All Offline		\|Websites All Offline
	\|BitcoinTalk users report that mini.ponzicoin doesn't work anymore. One user advises other users to "[r]ead the writing on the wall, folks. Sucks, but that's the ponzi game for you."<ref name="bitcointalk-5920" /> while another states that "[c]oins are gone" and notes that they're "going to have zero recourse"<ref name="bitcointalk-5920" />.		\|BitcoinTalk users report that mini.ponzicoin doesn't work anymore. One user advises other users to "[r]ead the writing on the wall, folks. Sucks, but that's the ponzi game for you."<ref name="bitcointalk-5920" /> while another states that "[c]oins are gone" and notes that they're "going to have zero recourse"<ref name="bitcointalk-5920" />.
			\|-
			\|March 9th, 2014 8:35:09 PM MDT
			\|PanicHistory Crosspost
			\|The Reddit community PanicHistory shares the story<ref>[https://old.reddit.com/r/PanicHistory/comments/200l74/this_is_why_ponzi_schemes_are_illegal_only_the/ This is why ponzi schemes are illegal. Only the bankers are allowed to do it. If they let non-bankers do it nobody would do anything else! - Reddit] (Accessed Mar 11, 2024)</ref>.
			\|-
			\|March 9th, 2014 10:51:56 PM MDT
			\|Reddit Buttcoin Crosspost
			\|The Reddit Buttcoin community enjoys the story<ref>[https://old.reddit.com/r/Buttcoin/comments/200wha/ponzicoin_operator_steals_money_investors_get/ Ponzicoin operator steals money; investors get upset - Reddit] (Accessed Mar 11, 2024)</ref>.
	\|-		\|-
	\|March 10th, 2014 3:03:05 AM MDT		\|March 10th, 2014 3:03:05 AM MDT
	\|Community Cynicism		\|Community Cynicism
	\|The community discussion turns more critical of the participants in the scheme "What a bunch of derps. See what greed gets you?"<ref name="bitcointalk-5921" />.		\|The community discussion turns more critical of the participants in the scheme "What a bunch of derps. See what greed gets you?"<ref name="bitcointalk-5921" />.
			\|-
			\|March 10th, 2014 4:37:00 AM MDT
			\|Another Reddit Crosspost
			\|The issue is crossposted and discussed on the Reddit group "EnoughLibertarianSpam"<ref>[https://old.reddit.com/r/EnoughLibertarianSpam/comments/201dw9/ponzicoin_operator_steals_money_from_the_free/ Ponzicoin operator steals money from the free market; libertarians get upset - Reddit] (Accessed Mar 11, 2024)</ref>.
			\|-
			\|March 10th, 2014 9:26:09 AM MDT
			\|Daily Dot Article Reported
			\|Daily Dot posts and article on the situation, commenting that users who participated in the PonziCoin gambling game are expressing outrage and frustration as they believe they have fallen victim to a scam, allegedly orchestrated by the game's creator, Vortuarackne<ref name=":6">[https://www.dailydot.com/crime/bitcoin-ponzicoin-scam/ Bitcoin users claim a game called ‘PonziCoin’ stole their money - Daily Dot] (Accessed Mar 11, 2023)</ref>. Unlike traditional cryptocurrencies, PonziCoin operates as a simple gambling game where players use bitcoins, with the game's theme revolving around a Ponzi scheme. The first six rounds reportedly proceeded smoothly, with Vortuarackne promptly reimbursing players as expected. However, in the seventh round, which commenced on Sunday, Vortuarackne modified the rules, promising to double the payout for the final participant. Despite 45 participants collectively sending 10.9 BTC (approximately $6,796), no payouts were received following the round's conclusion<ref name=":6">[https://www.dailydot.com/crime/bitcoin-ponzicoin-scam/ Bitcoin users claim a game called ‘PonziCoin’ stole their money - Daily Dot] (Accessed Mar 11, 2023)</ref>. Users voiced their grievances on Bitcointalk, expressing suspicions of Vortuarackne's disappearance with their funds and lamenting the lack of recourse. Vortuarackne's inactivity and failure to respond to inquiries intensified users' concerns. Some users noted Vortuarackne's earlier candid admission on Bitcointalk regarding his development of a Ponzi site, suggesting a lack of transparency about the game's true nature and the potential for participants to lose their investments<ref name=":6">[https://www.dailydot.com/crime/bitcoin-ponzicoin-scam/ Bitcoin users claim a game called ‘PonziCoin’ stole their money - Daily Dot] (Accessed Mar 11, 2023)</ref>.
	\|-		\|-
	\|March 10th, 2014 10:01:33 AM MDT		\|March 10th, 2014 10:01:33 AM MDT
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	\|Apology From Vortuarackne		\|Apology From Vortuarackne
	\|Vortuarackne apologizes on the BitcoinTalk forum and states he had shut down the site after suffering an attack<ref name=":3">[https://bitcointalk.org/index.php?topic=474730.msg5624685#msg5624685 Vortuarackne - "Guys, I'm terribly sorry I noticed the site was compromised last night with users being able to query the DB and what appears to be able to use my PHP RPC library to directly reach my local bitcoin instance. All deposits have been refunded." - BitcoinTalk] (Accessed Mar 7, 2024)</ref>.		\|Vortuarackne apologizes on the BitcoinTalk forum and states he had shut down the site after suffering an attack<ref name=":3">[https://bitcointalk.org/index.php?topic=474730.msg5624685#msg5624685 Vortuarackne - "Guys, I'm terribly sorry I noticed the site was compromised last night with users being able to query the DB and what appears to be able to use my PHP RPC library to directly reach my local bitcoin instance. All deposits have been refunded." - BitcoinTalk] (Accessed Mar 7, 2024)</ref>.
			\|-
			\|March 10th, 2014 11:01:00 AM MDT
			\|Business Insider Article
			\|Business Insider reports that concerns are rising regarding the legitimacy of PonziCoin, with users on Reddit expressing worries about its credibility<ref name=":4" />. Despite having conducted six previous rounds successfully, doubts emerged when PonziCoin's organizer, Vortuarackne, introduced new rules during the latest round<ref name=":4" />. These modifications included raising the maximum deposit to one Bitcoin (equivalent to over $600) and promising a 200% payout to the final depositor from Vortuarackne's personal wallet<ref name=":4" />. The rationale provided was to revitalize activity on the platform, which was perceived to have slowed down significantly<ref name=":4" />. However, shortly after the round commenced, it abruptly ended within five minutes without any payouts<ref name=":4" />. The sudden halt to payouts sparked panic among users, with frantic posts flooding online forums such as Bitcointalk<ref name=":4" />.
			\|-
			\|March 10th, 2014 11:31:54 AM MDT
			\|Business Insider Article Update
			\|Business Insider updates their article to report that PonziCoin organizer Vort has disclosed that the gambling platform was subjected to a hack, prompting him to initiate refunds for affected users<ref name=":4" />. Reports indicate that users are indeed receiving their deposits back. In response to the breach, Vort has decided to shut down the site indefinitely<ref name=":4" />. Earlier, concerns had emerged among users regarding the disappearance of their funds, leading to accusations against Vort<ref name=":4" />. However, Vort's full statement explains that the site was compromised, allowing unauthorized access to the database and potentially to his local bitcoin instance via PHP RPC library<ref name=":4" />. He is currently investigating the incident further and plans to provide more details later<ref name=":4" />. Vort expresses regret over the situation and confirms that PonziCoin will cease to accept deposits moving forward, apologizing for the disruption caused<ref name=":4" />.
	\|-		\|-
	\|March 12th, 2014 5:32:43 PM MDT		\|March 12th, 2014 5:32:43 PM MDT
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	== Total Amount Lost ==		== Total Amount Lost ==
			Estimates reported by Business Insider suggest that the creator(s) of PonziCoin may have profited approximately $7,000 from the round in question<ref name=":4" />.

	The total amount lost has been estimated at $7,000 USD.		The total amount lost has been estimated at $7,000 USD.

Azoundria: Azoundria moved page PonziCoin Exits Early to PonziCoin Early Exit Suspected: Inaccurate original title.

2024-03-11T19:51:06Z

Azoundria moved page PonziCoin Exits Early to PonziCoin Early Exit Suspected: Inaccurate original title.

← Older revision	Revision as of 13:51, 11 March 2024
(No difference)

Azoundria: Another 30 minutes. Updated initial description and throughout the article to reflect the ultimate return of funds, as well as an improved understanding of the scheme.

2024-03-08T21:50:45Z

Another 30 minutes. Updated initial description and throughout the article to reflect the ultimate return of funds, as well as an improved understanding of the scheme.

Show changes

Azoundria: Another 30 minutes. Further review of BitcoinTalk thread and when Vortuarackne returned. This does change the nature of the incident significantly. Filling in information in updated wiki.

2024-03-08T00:00:21Z

Another 30 minutes. Further review of BitcoinTalk thread and when Vortuarackne returned. This does change the nature of the incident significantly. Filling in information in updated wiki.

← Older revision		Revision as of 18:00, 7 March 2024
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	{{Case Study Under Construction}}		{{Case Study Under Construction}}
	[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]		[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]
	PonziCoin ~~was a very early service where~~ users ~~would~~ send bitcoin to BitcoinTalk user Vortuarackne ~~and~~ receive more bitcoin back (or lose their funds if they were too late). ~~One day~~, Vortuarackne stopped paying out. It doesn't appear that anyone got their funds back, though the amount lost was smaller than many other cases.		PonziCoin encouraged users to send their bitcoin to BitcoinTalk user Vortuarackne, in exchange for the ability to receive more bitcoin back (or lose their funds if they were too late). In one of these sessions, Vortuarackne stopped paying out. It doesn't appear that anyone got their funds back, though the amount lost was smaller than many other cases.

	== About PonziCoin ==		== About PonziCoin ==
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	\|March 9th, 2014 4:45:29 PM MDT		\|March 9th, 2014 4:45:29 PM MDT
	\|Websites All Offline		\|Websites All Offline
	\|BitcoinTalk users report that "mini.ponzicoin ~~is also halted~~. ~~Read~~ the writing on the wall, folks. ~~Sucks~~, but that's the ponzi game for you."<ref name="bitcointalk-5920" />		\|BitcoinTalk users report that mini.ponzicoin doesn't work anymore. One user advises other users to "[r]ead the writing on the wall, folks. Sucks, but that's the ponzi game for you."<ref name="bitcointalk-5920" /> while another states that "[c]oins are gone" and notes that they're "going to have zero recourse"<ref name="bitcointalk-5920" />.
	\|-		\|-
	\|March 10th, 2014 3:03:05 AM MDT		\|March 10th, 2014 3:03:05 AM MDT
	\|Community Cynicism		\|Community Cynicism
	\|The community discussion turns more critical of the participants in the scheme "What a bunch of derps. See what greed gets you?"<ref name="bitcointalk-5921" />.		\|The community discussion turns more critical of the participants in the scheme "What a bunch of derps. See what greed gets you?"<ref name="bitcointalk-5921" />.
			\|-
			\|March 10th, 2014 10:01:33 AM MDT
			\|Request To Turn Self In
			\|williamj2543 points out that "large news sites like businessinsider and important journalists on twitter now know about this" and advises Vortuarackne to "send back the coins and say its a website failure and your internet cut out"<ref>[https://bitcointalk.org/index.php?topic=474730.msg5624139#msg5624139 williamj2543 - "Who ... put this on reddit. Now all we have is ignorant people who don't even know what ponzi means making fun of us for using a GAMBLING website, and the owner running away. Btw Vort if you are still reading this some large news sites like businessinsider and important journalists on twitter now know about this, so I advise you send back the coins and say its a website failure and your internet cut out. PrivacyGuardian.org is going to send me your information like your IP address, and its only a matter of time before you get caught." - BitcoinTalk] (Accessed Mar 7, 2024)</ref>.
			\|-
			\|March 10th, 2014 10:28:17 AM MDT
			\|User Payouts Resumed
			\|BitcoinTalk user cyberadi reports that they "have cashback" and thanks Vortuarackne. Other users would also chime in shortly<ref>[https://bitcointalk.org/index.php?topic=474730.msg5624661#msg5624661 cyberadi - "LOL! I have cashback Thanks Vort." - BitcoinTalk] (Accessed Mar 7, 2024)</ref>.
			\|-
			\|March 10th, 2014 10:29:18 AM MDT
			\|Apology From Vortuarackne
			\|Vortuarackne apologizes on the BitcoinTalk forum and states he had shut down the site after an attack<ref>[https://bitcointalk.org/index.php?topic=474730.msg5624685#msg5624685 Vortuarackne - "Guys, I'm terribly sorry I noticed the site was compromised last night with users being able to query the DB and what appears to be able to use my PHP RPC library to directly reach my local bitcoin instance. All deposits have been refunded." - BitcoinTalk] (Accessed Mar 7, 2024)</ref>.
	\|-		\|-
	\|March 12th, 2014 5:32:43 PM MDT		\|March 12th, 2014 5:32:43 PM MDT
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	"With their stupidity and greed ponzi participants are just giving an incentive to scammers to keep scamming, and thus I strongly believe that no pity and no mercy is deserved to those who lose money to these type of blatantly obvious scams."		"With their stupidity and greed ponzi participants are just giving an incentive to scammers to keep scamming, and thus I strongly believe that no pity and no mercy is deserved to those who lose money to these type of blatantly obvious scams."

			<blockquote>"Who put this on reddit. Now all we have is ignorant people who don't even know what ponzi means making fun of us for using a GAMBLING website, and the owner running away. Btw Vort if you are still reading this some large news sites like businessinsider and important journalists on twitter now know about this, so I advise you send back the coins and say its a website failure and your internet cut out. PrivacyGuardian.org is going to send me your information like your IP address, and its only a matter of time before you get caught.

			Turn. Yourself. In"</blockquote>

	== Total Amount Recovered ==		== Total Amount Recovered ==

Azoundria: Another 30 minutes complete. Review of the thread further.

2024-03-06T23:40:43Z

Another 30 minutes complete. Review of the thread further.

← Older revision		Revision as of 17:40, 6 March 2024
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	{{Case Study Under Construction}}		{{Case Study Under Construction}}
	[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]		[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]
	PonziCoin was a very early service where users would send bitcoin to BitcoinTalk user Vortuarackne and receive more bitcoin back (or lose their funds if they were too late). One day, Vortuarackne stopped paying out ~~and disappeared~~. It doesn't appear that anyone got their funds back, though the amount lost was smaller than many other cases.		PonziCoin was a very early service where users would send bitcoin to BitcoinTalk user Vortuarackne and receive more bitcoin back (or lose their funds if they were too late). One day, Vortuarackne stopped paying out. It doesn't appear that anyone got their funds back, though the amount lost was smaller than many other cases.

	== About PonziCoin ==		== About PonziCoin ==
Line 24:		Line 24:

	== What Happened ==		== What Happened ==
	After changing the original post to guarantee a higher payout of 200%, Vortuarackne stopped making ~~any~~ payments to subsequent investors.		After changing the original post to guarantee a higher payout of 200%, Vortuarackne stopped making payments to subsequent investors in that round.
	{\| class="wikitable"		{\| class="wikitable"
	\|+Key Event Timeline - PonziCoin Exits Early		\|+Key Event Timeline - PonziCoin Exits Early
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	\|February 19th, 2014 5:57:17 AM MST		\|February 19th, 2014 5:57:17 AM MST
	\|PonziCoin Announcement		\|PonziCoin Announcement
	\|The PonziCoin is first announced on BitcoinTalk<ref name=":0">[https://bitcointalk.org/index.php?topic=474730.0 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round! - BitcoinTalk] (Nov 29, 2023)</ref>. "Allow me to introduce ~~'''~~PonziCoin~~'''~~. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"		\|The PonziCoin is first announced on BitcoinTalk<ref name=":0">[https://bitcointalk.org/index.php?topic=474730.0 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round! - BitcoinTalk] (Nov 29, 2023)</ref>. "Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"
	\|-		\|-
	\|March 9th, 2014 2:13:43 PM MDT		\|March 9th, 2014 2:13:43 PM MDT
	\|Edit on BitcoinTalk Post		\|Edit on BitcoinTalk Post
	\|The BitcoinTalk original post is edited to post an announcement that "~~'''~~As of round #7, the last deposit in every round is guaranteed to be paid out at 200%!!!!"~~'''~~<ref name=":0" />~~'''~~.~~'''~~		\|The BitcoinTalk original post is edited to post an announcement that "As of round #7, the last deposit in every round is guaranteed to be paid out at 200%!!!!"<ref name=":0" />.
	\|-		\|-
	\|March 9th, 2014 4:05:28 PM MDT		\|March 9th, 2014 4:05:28 PM MDT

Azoundria: Another 30 minutes complete. Expanded article. Much more research on Vortuarackne and his attempts to deal post-ponzi.

2024-03-05T17:40:07Z

Another 30 minutes complete. Expanded article. Much more research on Vortuarackne and his attempts to deal post-ponzi.

← Older revision		Revision as of 11:40, 5 March 2024
Line 1:		Line 1:
	{{Case Study Under Construction}}		{{Case Study Under Construction}}
	[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website]]		[[File:Ponzicoinco.jpg\|thumb\|PonziCoin Website/Logo]]
	PonziCoin was a very early service where users would send bitcoin and ~~recieve~~ more back (or lose their funds if they were too late). One day, ~~the anonymous individual running it~~ stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though ~~only a small~~ amount was ~~lost~~.		PonziCoin was a very early service where users would send bitcoin to BitcoinTalk user Vortuarackne and receive more bitcoin back (or lose their funds if they were too late). One day, Vortuarackne stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though the amount lost was smaller than many other cases.

	== About PonziCoin ==		== About PonziCoin ==
	"Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"		"Allow me to introduce PonziCoin. Having grown increasingly tired of waiting around for owners of other Ponzi games to manually process payments, or worse, run away with the coins, and being a bit of a "techie", I challenged myself to build a more sophisticated script, which not only automates every payment, but uses the entirety of the wallet balance in every payment round meaning at the end of the game, there will only be a few satoshi's left (at best) e.g. nothing I could run away with!"

	"~~The only~~ Ponzi ~~with an escrow reserve!" "Deposit between 0~~.01 and 0.~~1 for your chance to receive a 120% return!" "Rounds~~ will ~~automatically restart~~, ~~with plenty of notice~~, ~~when~~ deposits ~~begin to slow down~~." "~~The~~ last deposit ~~of each~~ round ~~is always guarenteed their 120% payout!~~"		"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."


	"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."

	Homepage:<ref name="ponzicoinarchive-5922" /><blockquote>The only Ponzi with an escrow reserve!		Homepage:<ref name="ponzicoinarchive-5922" /><blockquote>The only Ponzi with an escrow reserve!
Line 19:		Line 19:

	== The Reality ==		== The Reality ==
	This ~~sections~~ is ~~included if~~ a ~~case involved deception or information that was unknown at the time~~. ~~Examples include:~~		As articulated, a ponzi scheme is a payment model where payments to existing investors are made using the funds of new investors. This model is never sustainable, and most individuals investing in a ponzi scheme will lose their funds.

	* When the ~~service was actually started (if different than~~ the ~~"official story")~~.		However, when engaging in a ponzi scheme online, there is an additional risk in that the operator of the scheme may run off with additional funds of users. In this case, Vortuarackne agreed to take a 5% cut of all incoming payments, however there was no way to hold them to their agreement.
	* Who actually ran a ~~service and their own personal history.~~
	* How the service was structured behind the scenes. (For example, there was no ~~"trading bot".)~~
	* Details of what audits reported and how vulnerabilities were missed during auditing.

	== What Happened ==		== What Happened ==
	After changing the original post to guarantee a higher payout, ~~it appears that~~ Vortuarackne ~~just simply decided to stop~~ making any payments to subsequent investors.		After changing the original post to guarantee a higher payout of 200%, Vortuarackne stopped making any payments to subsequent investors.
	{\| class="wikitable"		{\| class="wikitable"
	\|+Key Event Timeline - PonziCoin Exits Early		\|+Key Event Timeline - PonziCoin Exits Early
Line 33:		Line 30:
	!Event		!Event
	!Description		!Description
			\|-
			\|February 18th, 2014 8:16:48 AM MST
			\|Vortuarackne Account Registered
			\|The user Vortuarackne first registers on BitcoinTalk<ref name=":1">[https://bitcointalk.org/index.php?action=profile;u=253120 Vortuarackne Profile - BitcoinTalk] (Accessed Mar 5, 2024)</ref>.
	\|-		\|-
	\|February 19th, 2014 5:57:17 AM MST		\|February 19th, 2014 5:57:17 AM MST
Line 61:		Line 62:
	\|Website Captured		\|Website Captured
	\|The PonziCoin.co website is captured for the only time by Internet Archive<ref name="ponzicoinarchive-5922" />.		\|The PonziCoin.co website is captured for the only time by Internet Archive<ref name="ponzicoinarchive-5922" />.
			\|-
			\|March 16th, 2014 3:46:26 PM MDT
			\|Vortuarackne Last Post
			\|Vortuarackne makes their last BitcoinTalk post, ironically to complain about "[t]oo many alt accounts being created"<ref>[https://bitcointalk.org/index.php?action=profile;u=253120;sa=showPosts Last Posts Of Vortuarackne - BitcoinTalk] (Accessed Mar 5, 2024)</ref>.
			\|-
			\|March 19th, 2014 5:12:42 AM MDT
			\|Vortuarackne Last Active
			\|The last time the user Vortuarackne ever logged into BitcoinTalk<ref name=":1" />.
	\|}		\|}

	== Technical Details ==		== Technical Details ==
	A ponzi scheme works by paying out early participants from the deposits of later participants. This original PonziCoin website was run by the BitcoinTalk user Vortuarackne, who directly ~~handled~~ the pay-outs. ~~Without using a smart contract~~, there was ~~nothing~~ to uphold the rules.		A ponzi scheme works by paying out early participants from the deposits of later participants. This original PonziCoin website was run by the BitcoinTalk user Vortuarackne, who had to be trusted to directly handle the pay-outs in order for investors to get their money back. In contrast with [[PonziCoin ICO Exits\|the later project also named PonziCoin in 2018]], there was no smart contract to uphold the rules and stop Vortuarackne from taking more than his agreed 5% of deposits.

	After changing the original post to guarantee a higher payout, it appears that Vortuarackne ~~just~~ simply decided to stop making any payments to subsequent investors.		While Vortuarackne had a profitable game by taking 5% of fees, he apparently decided that he wanted more. After changing the original post to guarantee a higher payout of 200%, it appears that Vortuarackne simply decided to stop making any payments to subsequent investors and walk away with the remaining funds. This of course killed all future potential for his project.

	== Total Amount Lost ==		== Total Amount Lost ==

Azoundria: Another 30 minutes complete. Additional sources merged in. Information moved around. New logo.

2023-11-29T21:13:33Z

Another 30 minutes complete. Additional sources merged in. Information moved around. New logo.

Show changes

Azoundria at 17:47, 16 October 2023

2023-10-16T17:47:06Z

← Older revision		Revision as of 11:47, 16 October 2023
Line 4:		Line 4:
	[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.		[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.

	The country for this case study is not yet known.<ref name="reddit-5919" /><ref name="bitcointalk-5920" /><ref name="bitcointalk-5921" /><ref name="ponzicoinarchive-5922" />		The country for this case study is not yet known.<ref name="reddit-5919" /><ref name="bitcointalk-5920" /><ref name="bitcointalk-5921" /><ref name="ponzicoinarchive-5922" /><ref name="comparitech-10032" />

	== About PonziCoin ==		== About PonziCoin ==
Line 74:		Line 74:
	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
Line 117:		Line 120:
	<ref name="bitcointalk-5921">[https://bitcointalk.org/index.php?topic=474730.1300 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 22, 2022)</ref>		<ref name="bitcointalk-5921">[https://bitcointalk.org/index.php?topic=474730.1300 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 22, 2022)</ref>

	<ref name="ponzicoinarchive-5922">[https://web.archive.org/web/20140312233243/http://ponzicoin.co/ PonziCoin 120% Ponzi] (Jan 22, 2022)</ref></references>		<ref name="ponzicoinarchive-5922">[https://web.archive.org/web/20140312233243/http://ponzicoin.co/ PonziCoin 120% Ponzi] (Jan 22, 2022)</ref>

			<ref name="comparitech-10032">[https://www.comparitech.com/crypto/cryptocurrency-scams/ Worldwide crypto & NFT rug pulls and scams tracker - Comparitech] (Dec 15, 2022)</ref></references>

Azoundria at 23:56, 12 April 2023

2023-04-12T23:56:35Z

← Older revision		Revision as of 17:56, 12 April 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ponzicoinexitsearly.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/ponzicoinexitsearly.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.		[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.

	The country for this case study is not yet known.		The country for this case study is not yet known.<ref name="reddit-5919" /><ref name="bitcointalk-5920" /><ref name="bitcointalk-5921" /><ref name="ponzicoinarchive-5922" />
	<ref name="reddit-5919" /><ref name="bitcointalk-5920" /><ref name="bitcointalk-5921" /><ref name="ponzicoinarchive-5922" />

	== About PonziCoin ==		== About PonziCoin ==
Line 67:		Line 66:
	!Description		!Description
	\|-		\|-
	\|March 9th, 2014 10:45:29 PM		\|March 9th, 2014 10:45:29 PM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 94:		Line 93:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			PonziCoin was a literal and honest smart contract ponzi scheme. The rules were straightforward and users came in droves to play. As far as we can tell, no criminal action was taken and users generally appear to have accepted their losses.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	PonziCoin was a literal and honest smart contract ponzi scheme. The rules were straightforward and users came in droves to play. As far as we can tell, no criminal action was taken and users generally appear to have accepted their losses.		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 00:49, 16 February 2023

2023-02-16T00:49:05Z

← Older revision		Revision as of 18:49, 15 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ponzicoinexitsearly.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ponzicoinexitsearly.php}}
			{{Unattributed Citations}}

	[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.		[[File:Ponzicoinico.jpg\|thumb\|PonziCoin]]PonziCoin was a very early service where users would send bitcoin and recieve more back (or lose their funds if they were too late). One day, the anonymous individual running it stopped paying out and disappeared. It doesn't appear that anyone got their funds back, though only a small amount was lost.

	The country for this case study is not yet known.		The country for this case study is not yet known.
			<ref name="reddit-5919" /><ref name="bitcointalk-5920" /><ref name="bitcointalk-5921" /><ref name="ponzicoinarchive-5922" />

	== About PonziCoin ==		== About PonziCoin ==
Line 12:		Line 14:
	"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."		"PonziCoin is a gambling game based on a Ponzi-type model. Before depositing, users should understand and accept the risks associated with this model. Payments will, and can only be made, once new deposits have been made. Should the system reach a confirmed deposit which is older than 12 hours, the game automatically resets." "PonziCoin charges a 5% fee. This helps cover the running costs of the site and provides the additional coins needed to repay the last deposit in every round. Due to this, the on-site balance will be slightly less than that shown on sites such as BlockChain.info."

			"If they had sticked to their own rules and payed out the earliest n players winnings until the Jackpot is empty then it would have been perfectly ok, what has happened here is after a few successful rounds of the game they suddenly just took the jackpot and ran with it."

			"I'm contacting privacyguardian.org (the registrar he used). They have a special form for reporting abuse. Will see how that goes."

			"I feel so stu.Pid, i deposited 0.8 that was all i have. [I] lost 1btc to s.cams nd ponzis nd now probably 0..7 more, i am really done with it! i still have some hope that it is just a technical pb."

			"It sucks to lose a bet, but I don't see how anyone here was "scammed." This was a well-advertised Ponzi scheme that paid out more than it took in, until it collapsed. Hopefully it was at least educational."

			"We are chocked not bc the ponzi stopped from lack of investors, it is the 7th round... But bc the owner ran away with the money without paying anyone. From the outside we may look like freaks but please understand that he built trust very efficiently. I have still hope of getting back my money, i evaluate the probability at 7%"

			"This is darwinism in its purest form. You are willingly participating in a ponzi scam, which make you a bunch of scammers as you want to profit from earlier investors money, and thus you deserve to be scammed and lose everything."

			"At least Maddoff wasn't a random nick on the internet connecting through Tor and registering its website through a proxy. You really need to explore a new level of retardness to "invest" in this stuff."

	"In the interest of full disclosure, I lost .3btc to this guy, I made the decision to deposit based off having done it twice before without incident and because the developer wasn't hard to get a hold of and was in fact answering my PM's quite timely re-assuring me this is an isolated incident, referencing the times things went down without a skitch. I'm prepared to charge it to the crypto-game, because I know I always should be if I'm willing to partake in something I ultimately have no control over after those funds leave mine."		"In the interest of full disclosure, I lost .3btc to this guy, I made the decision to deposit based off having done it twice before without incident and because the developer wasn't hard to get a hold of and was in fact answering my PM's quite timely re-assuring me this is an isolated incident, referencing the times things went down without a skitch. I'm prepared to charge it to the crypto-game, because I know I always should be if I'm willing to partake in something I ultimately have no control over after those funds leave mine."
Line 34:		Line 47:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 40:		Line 52:

	== The Reality ==		== The Reality ==
	In reality, the scheme was not so automated and air-tight. The operator was able to access the jackpot and ran early with the funds.<blockquote>"If they had sticked to their own rules and payed out the earliest n players winnings until the Jackpot is empty then it would have been perfectly ok, what has happened here is after a few successful rounds of the game they suddenly just took the jackpot and ran with it."


	"I feel so stu.Pid, i deposited 0.8 that was all i have. [I] lost 1btc to s.cams nd ponzis nd now probably 0..7 more, i am really done with it! i still have some hope that it is just a technical pb."

	"It sucks to lose a bet, but I don't see how anyone here was "scammed." This was a well-advertised Ponzi scheme that paid out more than it took in, until it collapsed. Hopefully it was at least educational."</blockquote>"We are chocked not bc the ponzi stopped from lack of investors, it is the 7th round... But bc the owner ran away with the money without paying anyone. From the outside we may look like freaks but please understand that he built trust very efficiently. I have still hope of getting back my money, i evaluate the probability at 7%"


	This sections is included if a case involved deception or information that was unknown at the time. Examples include:		This sections is included if a case involved deception or information that was unknown at the time. Examples include:

Line 64:		Line 68:
	\|-		\|-
	\|March 9th, 2014 10:45:29 PM		\|March 9th, 2014 10:45:29 PM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 77:		Line 77:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $7,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

	== Immediate Reactions ==		== Immediate Reactions ==
	Some effort was made to contact registrars and other entities.<blockquote>"I'm contacting privacyguardian.org (the registrar he used). They have a special form for reporting abuse. Will see how that goes."</blockquote>The community in large part was not very sympathetic, given the known nature of the scheme.<blockquote>"This is darwinism in its purest form. You are willingly participating in a ponzi scam, which make you a bunch of scammers as you want to profit from earlier investors money, and thus you deserve to be scammed and lose everything."

	"At least Maddoff wasn't a random nick on the internet connecting through Tor and registering its website through a proxy. You really need to explore a new level of retardness to "invest" in this stuff."</blockquote>


	How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?		How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Line 93:		Line 88:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 104:		Line 99:

	== References ==		== References ==
	[https://www.reddit.com/r/Bitcoin/comments/1zzzq0/ponzicoin_operator_steals_money_investors_get/ Ponzicoin operator steals money; investors get upset : Bitcoin] (Jan 20)		<references><ref name="reddit-5919">[https://www.reddit.com/r/Bitcoin/comments/1zzzq0/ponzicoin_operator_steals_money_investors_get/ Ponzicoin operator steals money; investors get upset : Bitcoin] (Jan 20, 2022)</ref>

	[https://bitcointalk.org/index.php?topic=474730.1240 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 20)		<ref name="bitcointalk-5920">[https://bitcointalk.org/index.php?topic=474730.1240 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 20, 2022)</ref>

	[https://bitcointalk.org/index.php?topic=474730.1300 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 22)		<ref name="bitcointalk-5921">[https://bitcointalk.org/index.php?topic=474730.1300 ★ PonziCoin ★ 120% Profit ★ 200% for the last deposit in every round!] (Jan 22, 2022)</ref>

	[https://web.archive.org/web/20140312233243/http://ponzicoin.co/ PonziCoin 120% Ponzi] (Jan 22)		<ref name="ponzicoinarchive-5922">[https://web.archive.org/web/20140312233243/http://ponzicoin.co/ PonziCoin 120% Ponzi] (Jan 22, 2022)</ref></references>