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Crypto is effectively a Ponzi scheme, says GLJ's Gordon JohnsonCryptocurrencies like Bitcoin work the same way as Ponzi schemes, according to critics like Roubini and Quinn, with new investors paying out. Executives at China's Blockchain-based Service Network (BSN) have branded bitcoin and cryptocurrency "the biggest Ponzi scheme in human history". A superseding indictment was unsealed yesterday charging an Australian national and a California man with operating a cryptocurrency Ponzi.