Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Friend was brainwashed by MLM-/ponzi investment scam. What can I do?
The one thing your friend needs to understand is for every dollar paid out, there is somebody paying that dollar in.  The mark of a Ponzi scheme is that it feeds on itself. The stock market has trade volumes where it almost meets the definition of a Ponzi scheme.  However, it deals with shares in actual production facilities (rather than only financial institutions) and provides means of production in return for large amounts of the profits.  So there is someone legitimately expecting to pay back more than he gets out, in return for the availability of money at a time where he could not finance matters except by credit. With your friend's scheme, there is nobody expected to pay more than he gets out. Nail him down with that: every dollar paid out has to be paid in.  Who is the one paying? At this point of time, it sounds like there will be two possible outcomes.  You'll be visiting your friend in debtors' prison, or you'll visit him in criminal prison.  If you highly value your friendship, you might get him out of the former with your own money.  You won't be able with the latter.  And if you let him exploit his standing for scamming his community, make no mistake, it will be the latter. I don't envy you.