Shark Tank's Mark Cuban openly admitted to operating a Ponzi-style chain letter system during his college years in the 1980s to finance his education at Indiana University. The billionaire entrepreneur and former Shark Tank investor revealed this unconventional hustle during an appearance on the Life in Seven Songs podcast last year. Cuban asked fellow students to send him money with promises of returns later, effectively running what he himself described as "basically a scam." His dorm mailbox regularly contained envelopes with $50 bills from various participants as the scheme generated funds. While Cuban ensured his friends received their money back, he acknowledged the questionable nature of the operation.Long before becoming the Shark Tank tech mogul, Dallas Mavericks owner, and television personality known today, Cuban came from a working-class background where his father occasionally handed him $20 bills. His entrepreneurial drive, even through dubious means, helped him survive financially during his junior year. This early hustle foreshadowed the aggressive business instincts that would later make him millions.After graduation, Shark Tank's Cuban moved to Dallas and lived on his friend's apartment floor, only getting a bed when someone traveled. His career began at a PC software store but ended abruptly when he skipped work to close a customer deal. That firing sparked the creation of MicroSolutions, launching a business empire that eventually included Broadcast.com's $5.7 billion sale to Yahoo and his current venture, Cost Plus Drugs.Shark Tank investor Mark Cuban’s Ponzi scheme explored View this post on Instagram Instagram PostShark Tank's Cuban's admission about running a Ponzi scheme came during a candid podcast interview. He described operating a chain letter system that targeted fellow Indiana University students.The setup required participants to send money upfront with the expectation of receiving larger returns later. This classic pyramid structure relied on continuous recruitment to sustain payouts. Cuban's dorm mailbox became a collection point for cash-filled envelopes. He recalled receiving multiple $50 contributions regularly, describing the flow of money as "amazing." He made a point of noting that his friends got their investments back. However, Cuban did not sugarcoat what he was doing, labelling it "basically a scam" in retrospect.Cuban's financial distress originated from his family history. He was raised in a working-class family with few financial resources. His father would occasionally give him $20, but he did not receive constant financial assistance. The junior year of college posed financial issues that required imaginative solutions. The chain letter scheme represented Cuban's early willingness to take risks for financial survival. This hustler mentality would define his entire career trajectory. View this post on Instagram Instagram PostAfter finishing his degree, Cuban moved to Dallas with little money. He crashed on a friend's flat floor since he lacked the finances to live on his own. The sleeping arrangements were minimal, and he only had access to a bed when someone left town. These modest living circumstances contrasted strikingly with his eventual affluence. Cuban got a job at a PC software shop, but his entrepreneurial ambitions clashed with regular employment. One morning, he made the regrettable choice to miss his shift.Rather than showing up for work, Cuban prioritized closing a deal with a customer. The sale seemed more important than clocking in on time. His employer disagreed and terminated him immediately. What seemed like a setback became the catalyst for starting MicroSolutions, his computer consulting company. Cuban sold MicroSolutions for millions, providing capital for his next venture. He co-founded AudioNet, which evolved into Broadcast.com before Yahoo acquired it in 1999 for $5.7 billion.What is Mark Cuban doing currently? View this post on Instagram Instagram PostThe massive sale gave Cuban confidence and excitement about business possibilities. He now runs Cost Plus Drugs, a startup focused on affordable prescription medications. The company receives regular correspondence from customers expressing gratitude. Cuban says they get letters and emails saying, "You saved my life," weekly or more frequently. Despite his wealth, Cuban continues hustling with the same intensity. When asked why he keeps working, his answer is simple: he genuinely enjoys it."I'm the luckiest guy in the world. I love doing this stuff," Cuban explains.Shark Tank airs Sundays at 9 p.m. ET on ABC and streams the next day on Hulu.