The US Securities and Exchange Commission has indicted people suspected of creating the Forsage cryptocurrency pyramid.
According to prosecutors, Forsage was created as a classic pyramid scheme – old investors attracted new ones and received funds from the inflow of funds. At the same time, the company worked in many countries, including the United States and Russia, raising more than $300 million worldwide. The pyramid was founded by four people – Vladimir Okhotnikov, Mikhail Sergeev, Sergey Maslakov and an unknown under the pseudonym Lola Ferrari. The remaining seven people are accused of promoting the pyramid scheme, with three of them promoting Forsage in the US as part of the Crypto Crusader group.
“The Forsage platform did not sell or intend to sell any real products to retail clients, and had no obvious sources of income other than funds received from investors. The main way for Forsage investors to get money was to involve other people in this scheme, ”the law enforcement officers emphasize.
Carolyn Welshhans, Acting Head of the SEC’s Crypto Assets and Cybersecurity Division, called Forsage “a massive and aggressively advertised fraudulent pyramid scheme.” The official stressed that scammers will not be able to circumvent federal securities laws with smart contract or blockchain claims.
Earlier, the founder and CEO of Titanium Blockchain Infrastructure Services admitted his guilt in conducting a fraudulent ICO.
Source: Bits
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