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Is legal for me to invest in HYIP's in the USA? If they pay…

Is legal for me...

Is legal for me to invest in HYIP's in the USA? If they pay in bitcoins and i sell it for instance in coinbase... how would i tax it?

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Massachusetts

Lawyer's Assistant: Has anything been filed or reported?

I haven't started yet

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

No, that is all :D

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Answered in 1 hour by:
11/24/2017
Zoey, JD
Zoey, JD, Attorney
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Customer reply replied 8 months ago
alright, cool!

No. HYIPs are not lawful in the US or anywhere else. Despite the very high popularity of HYIPs in general, all HYIPs are essentially Ponzis and profitable only until their structure collapses or until a government steps in to shut them down.

Ponzis are unlawful and according to the Association of Certified Fraud Examiners, they generally last only for around two years. After that, their corporate model can't sustain itself. Eventually, all Ponzis get topheavy and crumble when the number of new investors on the bottom don't bring in enough money to pay off all of the people at the top.

If the company's new and a blank slate, it's impossible to say whether it will pay out or not. Typically, though, HYIPs pay off most to the lucky few who get in right at the very beginning. The rest generally never see profits because the HYIPs become unable to pay out. Also since it is unlawful, if/when you lose all your money, you will have no possibility of recovering it.

Zoey, JD
Zoey, JD, Attorney
Category: Legal
Satisfied Customers: 31,897
Experience: Active member of the NYS bar since 1989
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Customer reply replied 8 months ago
Okay, but what if i'm one of those who got in the beginning and got my money back, how would i tax it? Capital gains?
Customer reply replied 8 months ago
I thought i could invest my money on anything i would like to
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