[Terr_]

> Ponzi schemes are money laundering schemes.

No, that's like saying "bank-robberies are drug-smuggling."

A Ponzi scheme involves investors being defrauded by someone lying about the status of assets and money flows.

It does not automatically imply any kind of money laundering, and in fact it can operate just fine even when every single scent being invested is from entirely clean sources.

[LargeTomato]

"Money laundering" as in the flow of cash and assets is obfuscated to appear as something it is not.

[Terr_]

No, laundering it's far more specific than that, it means the original money is somehow "dirty" (revenue from criminal activity) and is being "cleaned."

In contrast, a Ponzi scheme can operate just fine with 100% clean investment money coming in some unsuspecting victims, and the (smaller) amounts flowing back as dividends would also be clean.

[LargeTomato]

The most precise definition of money laundering may be that. But in general, laundering anything means to pass it off as something it may not be, particularly in a dishonest way.

But good on you for really getting your definitions down I'm sure you're super fascinating at parties.