Eve online: Investment gone wrong

  It comes as a surprise to me that the news aren't about gold selling anymore... eight months ago, two players named Eddie and Mordor began to establish a reputation for themselves as online brokers. In reality, however, it was just the two of them taking in people’s money(aka ISK in-game) and giving back 5% every week as rewards from their "investment".

  Week after week the business snowballed, but not as the money raked in but players who didn't know they were throwing away their money in the guise of investments for the future. In short order, they had as many as 300 new investors each week. All throwing their ISKs at the pair for absolutely nothing in return except a guarantee. A guarantee that their money would be invested into some other worthwhile fund and would earn them a consistent 5% back every week. They weren't found out until they forwarded the a message on their "online trading site" saying it was all over.

  In case someone don't know what a Ponzi scam is and hasn't watched the news in awhile, a explanation: The investment broker, or whoever is running the scheme, offer a solid “investment” that they claim will pay out great sums of money overtime. But instead of investing this money as promised, the person will pocket the money and pay you your 5% out of the money you and others gave them. After a while, people are so happy with their consistent return that they invest even more money not knowing that it’s not going anywhere except the scheme operator’s bank account. As word of mouth spreads on this great investment, the scheme runner will start taking in more and more money while only paying out a consistent 5% every week. As people reinvest their money, the business expands almost exponentially...until they are found out or they stop paying out and make a run with everyones investment money.

  Over the years I have heard many such news in RL, it came as a mild surprise that this could spread to the online world, but the most suprising thing for me is that it reached the scale it did in such a long time with no one the wiser...don't people watch tv at least? Naturally CCP being themselves allows such schemes in the EVE universe so technically what they did isn't illegal, except maybe in the eyes of all the people that lost their money but that's another story....