Detecting Smart Ponzi Schemes on Blockchain Using Machine Learning: A Comprehensive Survey

Abstract

Ponzi schemes, a more than a century-old fraud, have recently infiltrated blockchain-based cryptocurrency domain led by an explosion of such schemes in two most popular cryptocurrencies: Bitcoin and Ethereum. On these two platforms alone, the perpetrators of these frauds have fleeced gullible investors of billions of dollars annually. Smart Ponzi schemes are a hazard to these cryptocurrency ecosystems, diminishing investor confidence in these cutting-edge technologies, threatening their integrity, and hindering their growth and broader adaptation. These smart Ponzi schemes have also created a nightmare for law enforcement as tracking and taking countermeasures against fraudsters and recoveri..