Hacker News Reader

That would be a Ponzi scheme. It would be a pyramid scheme if people were promised higher interest rates based on how many other people they recruit.

They kind of were, weren't? As far as I understand, you'd get 1.5% minimum and you can raise it to 4% or 7% by bringing new people on board.

... how did it take this long to shut them down?

Genuine question — when does a referral bonus (pretty standard) turn into a pyramid scheme

When it becomes perpetual and when it becomes the dominant benefit that people get from the service?

Ah crap you're right got my p schemes mixed up.

Leaving error for posterity.