A Ponzi scheme promises participants passive income but pays it from new participants' contributions; under Ukrainian law it is fraud.
A Ponzi scheme, or financial pyramid, promises participants passive income for the deposit itself and pays it mainly out of new participants' money. The scheme has no real business that could earn those payouts, or the business is only a cover. Since 2024 Ukrainian law has explicitly defined a financial pyramid as fraud or actions with signs of fraud (Article 158 of the law «On Capital Markets and Organised Commodity Markets»).
In December 2025 the NSSMC approved five signs of a pyramid: a mandatory entry payment, a reward simply for taking part, payouts from new participants' contributions, no real activity, and income that depends on recruiting other people. A scheme may show only some of them.
Every pyramid survives only while the inflow of new money exceeds the payouts, so it inevitably collapses and most participants lose what they put in. Today pyramids are more often disguised as crypto projects, trading bots, «packages» with referral bonuses and closed Telegram channels run by «experts».
In detail, with examples: Ponzi schemes and fake investment projects: how to spot them before you hand over money
NSSMC Social engineering Money mule
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NSSMC signs of a pyramid, why «1% a day» is impossible, modern schemes with crypto and deepfakes, a 10-minute project check and a plan if you have already sent money.