The fundamental flaw of a Ponzi scheme is that it never ends until the person committing the fraud is caught and disappears.

Question

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In a Ponzi scheme, the fraudster relies on new investors to pay returns to earlier investors, and the scheme only collapses when there are not enough new investors to keep it going or when the fraudster is caught and stops the operation. Therefore, the scheme continues until the fraudster is exposed, arrested, or decides to vanish.

The Fundamental Flaw of a Ponzi Scheme Is That It