<prompt> Human: My apologies if this isnt the best sub for this question. It hits on a variety of issues so I figured this would be the best place to get a somewhat comprehensive answer.Im getting married in July 2018 and am spending Christmas with my fiancés family. Her family is very kind and has never acted inappropriately about money, but its pretty obvious that they arent very financially literate and arent good with money. Last night her father pulled me aside to tell me about some investments hes made in bitcoin.Essentially, hes put about 300 in bitcoin into USI-Tech, a business supposedly based in Dubai that claims to have developed an automated trading bot that can achieve a 140 return over 140 business days. 60 is in his name, plus 60 in the names of his wife and kids to include my fiancé. Theres no proof that this company engages in any kind of trading whatsoever. There are no financial statements much less independently audited ones, no evidence of any physical operations anywhere, and they are not registered with the SEC even though they are selling securities in the U.S. Needless to say, they highly encourage their victims to reinvest their money and have a MLM-style referral scheme to keep the cash coming in. They recently announced that theyre developing a new crypto coin, but of course they wont even release a white paper until theyve sold 500 million coins. A quick google search shows plenty of people warning that USI-Tech is a Ponzi scam and in the past few days, Texas and parts of Canada have begun warning investors that its a scam.Bottom line, its blindingly obvious that USI-Techs only source of revenue is new investors and it is, by definition, an illegal pyramid scheme. And even if that isnt the case which I highly doubt, theyre still in violation of U.S. law by selling securities without registering with the SEC. Furthermore, based on their supposed Initial coin offering a new revenue source to keep the scheme going, local regulatory authorities catching onto them, and user reports of glitches preventing them from withdrawing their bitcoin, Id be willing to bet that the scheme is going to go belly-up fairly soon.Although my spider-sense was tingling when he showed me USI-Tech, I didnt tell my father-in-law that it looked like a pyramid scheme last night because I wanted to do my research before telling him that his Christmas gift to his kids was a Ponzi scheme. Of course, 30 minutes of simple research confirmed my fears and now Ill have to explain to him exactly what hes gotten into.Based on that background I have a few questions. I have an accounting degree, but I cant say Ive dealt with something like this before.1.Im going to talk to my fiancé about the issue today. Is she at any legal or financial risk because he signed her up with 60 of his money? Besides ending her participation in this scheme, what do we need to do to protect her? This my greatest concern right now.2.Are there any tried-and-true methods of convincing someone that theyve invested in a scam? Hes very much the conspiracy theory type and isnt financially literate. When his wife said that it looked like a pyramid scheme, he replied that you work for a pyramid scheme. She works for a university. So yeah...thats the level of financial understanding that Im working with here.3.I plan on reporting this scam to the FBI and the SEC. I cant stand the idea that these crooks are being allowed to take advantage of people. Is there any other regulatory agency I could report to?Again, I understand that some of this may be better suited for rLegalAdvice, but I figured this would be a good first stop.Tl;dr: Father in law invested money in his familys names in what appears to be a Ponzi scheme. What do I do next?  <response>: Meh, its 300. Not worth the headache to deal with it 