Matt Levine’s Money Stuff: Celsius Wants Some Money Back (Correct)

Celsius

The way a Ponzi scheme works, for a while, is that (1) you take people’s money, (2) you tell them that they are earning a nice return on their money and (3) if they want to withdraw their money, with those nice returns, you just give them someone else’s money. With enough investors, you can keep this going for a while: There’s plenty of money from new investors to pay off anyone who wants to withdraw, and because everyone who wants to withdraw gets their money back, no one suspects anything, so not too many people withdraw ...