The Crypto Ponzi Scheme: a Biblical Perspective
Another crypto Ponzi scheme exposed
I recently read an article by Seeking Alpha about an alleged crypto Ponzi scheme where four people scammed investors out of $295 million worth of Bitcoin. Although this is incredibly sad for the individual investors caught in this scheme, it reveals an underlying issue in our culture today.
We hear about people making millions of dollars from crypto, meme stocks and other hyper volatile asset classes. As FOMO kicks in, people do foolish things with their money, even trusting lying scammers to manage their investments.
A biblical response to crypto Ponzi schemers
Let’s see what the Bible says about this crypto Ponzi scheme. First, we’ll look at the crypto Ponzi schemers. These four individuals thought less about what’s good for others and more about themselves. Job 20:5 says, “the triumphing of the wicked is short, and the joy of the godless is momentary”.
Sadly, we see this a lot in the financial world, giving rise to crypto Ponzi schemes and other financial scams. The Wolf of Wall Street and Bernie Madoff come to mind as archetypes of greed and evil that can exist when we live without a higher standard.
This could lead to a perception that all of Wall Street is evil or that crookedness goes unpunished, but that is not the case. Eventually, evil is exposed, and darkness comes to light. Bernie Madoff was arrested; the Wolf of Wall Street did his time, and the crypto Ponzi schemers are now in the hot seat.
Ecclesiastes 12:14 states, “For God will bring every act to judgment, including every hidden thing, whether it is good or evil”, and Luke 12:2 says, “But there is nothing covered up that will not be revealed, and hidden that will not be known.”
Christian advisors and a higher standard
As Christians, we have a higher standard. Though this does not guarantee trust won’t be broken or sin won’t happen, it’s less likely to occur among people with a moral compass that’s based on Biblical principles.
That isn’t to say you shouldn’t trust all non-Christian investment or financial advisors. However, there’s a better chance that Christian advisors will seek the guidance of the Holy Spirit to keep them from abusing the trust of investor/advisor relationships. While this does not guarantee good investment advice, your advisor’s morality is paramount when making investment decisions or choosing whom to partner with for financial advice.
Bible verses about greed and materialism
So what about the investors who were duped? Are they completely innocent in this whole debacle? Two prominent bible verses about greed and materialism shed light on this issue. Proverbs 13:11 says, “wealth gained hastily will dwindle but whoever gathers little by little will increase it”.
1 Timothy 6:9–10 adds:
Those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.
These bible verses about greed and materialism reveal that hastening to be rich causes people to abandon their better judgment and fall prey to seducing words and vain promises of crypto Ponzi schemers. Although the perpetrators of this Ponzi scheme are at fault, the consequences of unwise investing and selecting unwise managers fall on the victims.
We pray these victims receive just compensation for their losses, but we also hope the experience has helped them learn not to trust unwise managers and to avoid hastening to gain wealth quickly. This story should caution us all to adhere to the Biblical wisdom of saving and investing prudently over time to build wealth.
In the counsel of many advisors is safety
Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisors they succeed.” I recommend aligning yourself with advisors who hold themselves to a higher moral standard, namely a Biblical standard. Again, this doesn’t guarantee there will never be a lapse in judgment or a break in trust, but the Bible commands us not to be unequally yoked. Finally, especially if you’re a Christian, the wisdom, values and conviction of a Christian financial advisor are more likely to align with your own.
If you’re interested in working with a financial advisor who will help you steward your resources with wisdom and integrity, connect with an advisor today. We’ll start by answering any questions you have about biblically responsible investing, saving and planning your financial legacy.
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