Give me 100% of your money. Every month I will tell you it's grown 10%. Costs me nothing to lie and create a fake statement. I do this to you and 2 other people... Suddenly, you want to cash out. I pay you with the 100% the other guy paid.

You're none the wiser and the scam continues until there's no money left or I get away with it.

Point being... Probably ponzi scheme. Anyone can SAY a balance has increased,or provide you a statement.

It's like how banks say they have your 50 grand until there's a bank run and they don't actually have it and go bankrupt. But without the FDIC component ofc.