Web

Full Tilt Poker hits back at ‘global Ponzi scheme’ accusation

full-tilt-poker-ponzi-scheme-shutterstock

Embattled online poker giant Full Tilt Poker has struck back at U.S. federal prosecutors, who Wednesday accused the gambling site of being a “global Ponzi scheme.”

“While the government has obviously taken issue with the underlying activities of FTP, under any reasonable interpretation, the world-wide operations of the online cardroom are not a so-called Ponzi scheme,” said Ian Imrich, attorney for Full Tilt owner and star poker player Chris Ferguson, in an interview with the Wall Street Journal.

The statement follows an accusation by Preet Bharara, a federal attorney for the Southern District of New York, who told WSJ earlier this week that, “Full Tilt was not a legitimate poker company, but a global Ponzi scheme.”

Ponzi schemes, named after Charles Ponzi, who invented the fraudulent business structure in the early 1900s, operate by paying new investors with previous investors’ money, rather than paying them in actual profits made by the business. A recent well-known example is that of Wall Street tycoon Bernie Madoff, who was arrested in 2008 for creating what is said to have been the largest Ponzi scheme in history.

Investors in Ponzi schemes are often enticed by guarantees of profit far larger than legitimate investments can deliver. This is true because the payouts to investors have nothing to do with actual business performance, but rather the amounts that can be paid and still keep the scheme afloat.

Another Full Tilt attorney, Jeff Ifrah, told the Journal that Full Tilt’s structure does not match that of a Ponzi scheme. Instead, he says, Full Tilt was simply a “mismanaged” business, as the Journal explains it.

“A Ponzi scheme requires an investment vehicle in order to receive a certain rate of high return,” Ifrah said. “None of these things happened here.”

Regardless of whether or not the Ponzi claims are true, Full Tilt remains in serious trouble with U.S. authorities, who in April seized all of Full Tilt’s assets, and shut down the gambling site’s functionality, save allowing users to withdraw their funds from the Full Tilt system.

Two other major online poker sites, Poker Stars and Absolute Poker, were also seized by the Federal Bureau of Investigation.

[Image via whitewizzard/Shutterstock]

Computing

Microsoft’s Chromium Edge browser may be adding your Chrome extensions

Fans sticking to Google Chrome because due to its vast extension library might be able to switch over to Microsoft's latest iteration of Edge, as a project manager confirms that the company has its eyes on Chrome extensions.
Movies & TV

Stay inside this winter with the best shows on Hulu, including 'Killing Eve'

It's often overwhelming to navigate Hulu's robust library of TV shows. To help, we put together a list of the best shows on Hulu, whether you're into frenetic cartoons, intelligent dramas, or anything in between.
Movies & TV

The best shows on Netflix, from 'Haunting of Hill House’ to ‘Twilight Zone’

Looking for a new show to binge? Lucky for you, we've curated a list of the best shows on Netflix, whether you're a fan of outlandish anime, dramatic period pieces, or shows that leave you questioning what lies beyond.
Wearables

Our favorite fitness trackers make it fun to keep moving

Looking for your first fitness tracker, or an upgrade to the one you're already wearing? There are plenty of the wrist-worn gadgets available. Here are our picks for the best fitness trackers available right now.
Mobile

The Galaxy S10 may be announced before MWC, sell for up to $1,750

While we still may be months away from an announcement, there's no doubt about it: Samsung is working hard on its successor to the Galaxy S9. Here's everything we know about the upcoming Samsung Galaxy S10.
Computing

If you've lost a software key, these handy tools can find it for you

Missing product keys getting you down? We've chosen some of the best software license and product key finders in existence, so you can locate and document your precious keys on your Windows or MacOS machine.
Computing

Google+ continues to sink with a second massive data breach. Abandon ship now

Google+ was scheduled to shut its doors in August 2019, but the second security breach in only a few months has caused the company to move its plan forward a few months. It might be a good idea to delete your account sooner than later.
Social Media

‘YouTube Rewind 2018’ is about to become its most disliked video ever

YouTube is about to achieve a record it really doesn't want — that of "most-disliked video." Yes, its annual recap of featuring popular YouTubers has gone down really badly this year.
Computing

Want to save a webpage as a PDF? Just follow these steps

Need to quickly save and share a webpage? The best way is to learn how to save a webpage as a PDF file, as they're fully featured and can handle images and text with ease. Here's how.
Mobile

5G: Why everything is about to change

Curious about the many ways 5G will change and enrich your life? Here’s our guide to all things 5G.
Computing

Firefox 64 helps keep your numerous tabs under control

Mozilla officially launched Firefox 64 by placing new features into the laps of its users including new tab management abilities, intelligent suggestions, and a task manager for keeping Firefox's power consumption under control.
Computing

Email take-backsies! Gmail's unsend feature is one of its best

Everyone has sent a message they wish they could take back. How great would it be if you could undo that impulsive email? If you're a Gmail user, you can. Here's how to recall an email in Gmail.
Computing

Costco members can cut up to $200 off MacBook and iMac price tags

Costco is discounting MacBook Air and MacBook Pro laptops by as much as $200 as part of a members-only sale. It also has deals on select MacBooks and iMacs, with optional Apple Care in most instances.
Music

Here's our head-to-head comparison of Pandora and Spotify

Which music streaming platform is best for you? We pit Spotify versus Pandora, two mighty streaming services with on-demand music and massive catalogs, comparing every facet of the two services to help you decide which is best.