What is Ponzi Scheme Fraud / Scam?


$770 million Indian Ponzi Scam has Bollywood celebs and Bitcoin involved

There were reports of allegations against top Bollywood celebrities when there was a case where approximately INR 500 crores or approximately $772 million was involved. The base of the case was cash for clicks ponzi scam that had actually been given shape due to endorsements from Bollywood celebrities. Bollywood stars have always had a major role in being able to influence the public and the way they look at things or understand certain things. This is the psychological fact that was made use of and Bollywood celebrities were approached for endorsements. Another aspect of this case was that there would be payouts in Bitcoin. Bitcoin and crypto currency are anyway banned and considered to be illegal in India.
Text Showing the Word Fraud

Ponzi Fraud

Now, you must be wondering what exactly happened and what is this click and earn scheme that we are referring to. Well, when CBI (Central Bureau of Investigation) got active, they discovered that there was a ponzi scheme. 
In this scheme, viewers or the audience were promised money if they clicked on an advertisement. 
What made these advertisements more luring was the fact that It has Bollywood celebrities endorsing them.

Now, we all know the hero worship that goes on in this country. This is why it was obvious that a number of people had fallen into the trap and disappointed when the received nothing. 
A number of people feel that it is a common thing and nothing too great. However, there are certain rules from the media’s end that need to be followed and making such fake promises or declarations is nothing less than a crime.

The instance is focused around a novel start up called Webwork Trade Links that is a private company. 
It launched with the cash for stockcapital of ₹1 lakh ($1,500). 
After four months, the revenue of the company had grown to ₹260 crores. This was done entirely from the money of the investors. 

The revenue came in post the launch of AddsbookDOTcom. This was done by the founders of Webwork. Those who invested, were promised hefty rewards for clicking on advertisements that were posted online on their website. This is the scheme which got over 400,000 investors to enrol themselves in a span of 4 months. This is a very luring scheme and definitely paid off very well for the company. 
It seemed like a win-win situation for all to the masses. But actually, it was only a win for the company and nothing for the investors. 

Bollywood Fraud

Now, coming to those from Bollywood who were unintentionally a part of it. The biggest name that pops up in the mind when we think of a Bollywood star or even a superstar is Shah Rukh Khan. This is why the company approached him and got him on board. 
Along with Nawazuddin Siddique, he too rolled out TV ads. 
In fact, also note that Shah Rukh Khan is one of those actors who come in the list of highest paid 10 actors in the world.

Tags: Ponzi Scheme, Fraud, Scam, Money, Deposit Scheme, Finance company Fraud

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