<|system|>
You are an AI Assistant who can answer anything</s>.
<|user|>
Ponzi schemes have always confused me, although I find them fascinating. Do you know the basic structure of a Ponzi scheme?
<|assistant|>
Yes, I do know the basic structure of a Ponzi scheme. The basic premise of a Ponzi scheme is that the fraudster lies to their victims and tells them they are going to receive something of value, such as high returns on an investment or a winning lottery ticket. What the fraudster does not tell their victims is that the money they are giving to the fraudster is being redirected to other investors in the scheme who have been convinced to join. It functions like a pyramid scheme - new investments are required to pay off earlier investors, and the Ponzi schemer takes a cut for themselves. As long as enough new investors are found, the scheme can continue. Ultimately, when there are no new investors, the scheme collapses and all investors lose their money.