I think many HYIP investors are doubtful about this question. Is HYIP legal? Will I be arrested by police if I build or promote HYIP programs? Should we all as investors be called as engaged in illegal trade? If the HYIP creator is doing illegal tading, so those who are involved, will automatic be called illegal investor? Now let me share you some opinions from online forums.
By quoting the definition in Wikipedia:
“A high-yield investment program (HYIP) is a type of Ponzi scheme, which is an investment scam that promises an unsustainably high return on investment by paying previous investors with the money invested by newcomers.”
“A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual profit earned.”
From Topnotcher: “well thats really a big question. hyips legal or not , but they have been here for almost 5-6 years now . and also the terms and conditions which they all mention seems to make them legit only.”
From Forumplace: “I know that HYIP creators might not be legal but what about us investors? HYIP seems to be widely discussed in forums small or big and invested by many online money seekers. However, it is stated as illegal in Wikipedia. This gives me a big question mark in mind.”
From Luke1: “I think HYIP is most likely private transaction. Like selling and buying stuff online. So, no matter it’s legal or not, it will stay alive. The most important thing is just making profit by HYIP.” “I’m thinking about this also… Is PTC, PTR, PTS programs legal too? Is PTP forum, HYIP monitors legal? I think most online businesses don’t really care about legal issue.
Research, think, decide and take action (either investing or skipping it). So, it is simple.”
From Sinip: “Well, look at the big picture, many other things that happen in the world everyday are not legal, but are perfectly acceptable (if a entity doing it has enough power to pull it through without being stopped)?! So worrying about whether HYIPs are legal or not is not going to give me any more gray hair that I already have.”.
From Norlac: “Hyip is not legal in anyway you want to look at it, it’s just a means of making money after all the are other illegal ventures both online and offline that are earning money for it’s investors. So enjoy the game or deals while it last.”
From Maxcool: “they arent legal… they arent regulated by any law and they dont pay taxes. But also investing in hyips is not considerated as illegal…. so dont worry. Some programs can say they arent ponzi and they work in forex market… so that can give us the illusion of legality.”
From Red-dragon: “well and i am sorry to say that hyip is illegal and i askes laws and said that and you give you money to people you donot know them and there are no tax! “
From chardyme: “Well legal or illegal, we earn from it so I don’t care about people saying that it is illegal. Anyways I risk my own money in it so why stop me from investing and earning or be scammed by HYIP. What matter is we are investing our money and we all know the risk that we are into that we can win or lose our money anytime.”
From mehul.116: “hey friend i think most of the hyips are gambling so i think gambling is not legal any where…so i think that hyips are illegal…”
So what is your opinion about this question? Is HYIP legal or not? Welcome to comment below.