Commerce Minister Kris Faafoi has shelved plans to pass laws to protect investors in future Ponzi schemes, leaving a victim of one of New Zealand's largest frauds furious.

On Monday Faafoi announced changes to insolvency law, which includes protecting some of the value of gift cards or vouchers when the issuing company becomes insolvent.

But papers released by Faafoi show he has indefinitely put on hold reforms he announced in May last year which could have given liquidators greater scope to claw back money from those who withdrew money from a Ponzi scheme before it collapsed, to repay those who

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