[Tuna-Fish]

> Not that it saves Bitconnect's case, but taking in money can be legitimate, can it not?

Only if the returns are low enough. If you had a way of making 1% a day returns, taking in large amounts of someone else's money would be really dumb.

[Bromskloss]

Isn't the issue rather how your rate of return scale with the amount of funds under management?

[notahacker]

The issue is that anyone with an investment strategy capable of earning consistent returns of over 1% per day, will (i) have no difficulty raising capital by offering much lower payouts to their investors (ii) will maximise their personal profit far more easily by paying out only a small fraction of returns to investors, and retaining the rest to reinvest for themselves rather than offering 1% a day returns and stupidly generous referral schemes to try to attract more funds to "manage".

Of course, the reality is that nobody earns rates of returns like this at any scale whatsoever except by robbing Peter's new funds under management to pay Paul