The seemingly limitless innovations that are springing out of information technology have created enormous opportunities for all kinds of predatory behavior uninhibited by social regulation. Cryptocurrencies are one of the leading contestants in this competition. Crypto is a Ponzi scheme. It’s the IT version of what Bernie Madoff did in a mutual fund fraud in New York City in the 1980s and ‘90s, which was the greatest Ponzi scheme of all time − until now.

Crypto coin platforms take in money when people buy the virtual “coins,” and if enough people keep buying them, the value of the coin goes up. In the simple crypto cases, the money just sits there, it’s not invested in any activities that generate income or profit, and people can sell their coins at a profit only if more and more people are still buying the coins.

If lots of people are buying, the coin value goes up dramatically, and the people that cash-out while that’s happening make a bundle. But if new buying starts to fall off − partly because the bit-coin gamers know the game is approaching its tipping point − then eventually the cash reserves and coin values fall to the point where people cashing out get less than they have put in. At that point, everyone else panics and cashes out at as fast as possible (it’s not that easy to sell crypto coins fast) and a lot of coin holders get hit hard; eventually coins crash into bankruptcy.

Some banks figured this all out (they were a little slow and careful) and…