On: BitConnect Closes Exchange as States Warn of Unreg...

[mannykannot]

In the US, as the Madoff case showed, if it can be shown that you are a sophisticated enough investor to realize that it is probably a Ponzi scheme, your profits can be clawed back and used as partial restitution for the victims. Any scheme that is upfront about what it was doing would significantly lower the bar on making that case.

[sseveran → mannykannot]

In fact this is the case even if you are not a sophisticated investor, since the profits are not yours and are really just stolen property.