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RECESSION-HIT ARGENTINA GRIPPED BY ‘PONZIDEMIA’

A quiet Argentine town best known for its oranges has become the symbol of a Ponzi scheme plague sweeping the crisis-hit nation that has cost thousands of people their savings.

Nearly 30 percent of the population of San Pedro, a town of 70,000 people situated about 170 kilometres north of Buenos Aires, fell for an investment app peddled by two actors posing as businessmen that promised up to two percent daily returns paid in cryptocurrency.

But the dream of easy money in a country battling a severe recession and three-digit inflation soon turned to dust.

Two Argentine nationals have been arrested in connection with the case.

A Ponzi scheme is a fraudulent scheme where new investors’ money is used to pay off old investors until the flow of new money dries up and the enterprise collapses.

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