I'm wondering if anyone can show me a "city ordinance" that is backed by a "state statue" that is backed by a "Federal Law" that says HYIP's are 'illegal' in the United States......I'm almost getting sick of hearing about the 'legality' of hyip's! Would someone please "prove" if they are illegal, otherwise, go away!

One more rumor, that I read on another forum, was that the SEC would be shutting down e-gold soon....because too many people are losing money. If that's the case, I hope the SEC shuts down "Charles Schwab" too, cause I lost a BUNCH of money with the "Dot Com's" a few years ago....and back then, I wasn't expecting near the 300% a year that is feasible with HYIP!

This been discussed several times, please do a forum search beforehand

Now as a quick reponse it will depend where you live, for example in US, is illegal any ponzi schemed programs.

It all depends on how the HYIP is running things in the background. "HYIP" is just an acronym that means "high yield investment program" so that can be extremely broad. If someone is running a HYIP ponzi style where they just take new investor's money to pay old investors, that would be illegal according to US law, but it is not illegal in many other countries.

About e-gold, i highly doubt it will ever get shut down. Those are just rumors that have been circulating for years. There is nothing illegal about e-gold. If they shut down e-gold just because some people lost money using it, then why wouldn't they just shut down the entire federal reserve since they print currency that gets used in millions of different crimes.

99.9% of hyip = ponzi = pyramid scheme = illegal.
0.01% of hyip = real = probably havent got any real documents = still illegal

Ponzi = Illegal
Pooling funds by actively advertising and enticing investors in = Illegal
Pooling funds by actively advertising and enticing investors in but with a valid broker's license = Legal
Pooling funds in a private, invitation only club where new investors can only join with a special invitation code (ie not open to the general public) = Legal up to a certain point.

The legality is based on US and EU laws. Naturally if you want to get around it, you can run the program from somewhere like Panama and you can dance around the FBI agents trying to bust you wearing baggy trousers singing "Da nanana, nana, nana, You can't touch this!".

Please tell us how they are legitimate.

You can't tell us they are legitimate until you prove it.

We need lots more info before we believe they are LEGITIMATE!

I'm in Oz, so should I bust out my parachute pants? Does it matter where it is hosted? (Assuming that the law sees honest HYIGs as ponzi's)

The law is broad and that makes it possible for so many people to get continue running these ponzi's. We had Price Water House Coopers set everything up, since our investments are made into our company OTA Ltd it was manageable with the law how it is but any investment fund is frowned upon and they have been cracking down on it over the last few years in New Zealand anyway.



In Oz its illegal to run a ponzi, since you offer a game almost like lotto there may be loop holes around it i am not sure but i don't think so.

If there is something illegal hosted on the server and the server admins are contacted they have to take it down by law. They wont do this from any normal person sending them an email but they will if it is from anyone policing the ponzi market.

mm, then the question is do online gambling sites require gambling licenses like any real-world business.

Not all HYIP = Ponzi. There are still serious HYIP invoiving in REAL investment.
We will prove you this when our new program is launched.

Nice to meet you!
greeting from South Korea.

This programs scaming people,stealing from their money,stealing=not legal

Totally agree. Stealing money = illegal.