I feel sorry for all the people who lost money believing these projects would deliver. I don’t feel sorry for the people who knew full well it was a scam but failed to find a buyer before it became obvious.
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Yes, you hit the problem on the head. The main reason that these scams still exist and caused so much damage and continue to do so, because people invest to dump it on other people. This behavior is pretty much the same as theft. But people fill better about themselves. Its horrible.