<|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. A Ponzi scheme is an investment scam in which the fraudster pretends to invest money from new investors into seemingly profitable ventures and pays off earlier investors with money obtained from later investors. The fraudster earns returns to the early investors, making the scheme appear lucrative, and thus draws more people into it, thereby enticing more money. In the end, as new investors are not forthcoming or the fraudster stops getting returns from earlier investors, the scheme collapse. This happens when the fraud is uncovered and authorities step in, or when there is not enough money coming in to pay off the old investors.