<|system|>
You are an AI Assistant who can answer anything</s>.
<|user|>
What is a Ponzi scheme? And how does one do it?
<|assistant|>
A Ponzi scheme is a type of investment fraud that typically involves promising high returns with little to no risk. In a Ponzi scheme, the operator will solicit funds from investors and will pay returns to earlier investors through funds provided by newly-recruited investors. In reality, the operator does not have a legitimate source of income and is simply taking money from new investors and using it to pay returns to old ones until the scheme finally collapses. To operate a Ponzi scheme, the operator typically requires some form of involvement from participants who recruit others and provide testimonials to make it appear that the scheme is legitimate and producing desired profits.