Forensic Profiling of 'Cryptocurrency' Criminals

The fraud triangle is well-known and has been applied for many years in explaining a variety of white-collar crimes. Equally, the Dark Triad of psychological traits has been applied in definitions of individuals who exhibit a range of criminal activities. In this paper, the concept of financial fraud, including Ponzi schemes, is analysed against the types of individuals acting in this deception. First, it is proposed that a Ponzi triangle consisting of three separate classes of actors is required for a successful pyramid scheme or other fraudulent investment schemes. The various parties include the initial promoter, which derives from individuals who actively seek out fraud. Next, average individuals fall within the 10-80-10 definition of individuals who act dishonestly if given the opportunity and believe they won’t get caught form the majority of deceived people. Finally, it is noted that ambivalence must exist with regard to either regulators or law enforcement. The regulators either fail to act because of ignorance of the problem or fear of acting and disrupting a novel industry