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HomeNewsForsage, a crypto company, is facing charges for committing a Ponzi scheme

Forsage, a crypto company, is facing charges for committing a Ponzi scheme

Eleven people have been charged for operating a pyramid and Ponzi scheme for raising over US$300 million from multiple investors.

The executives of a crypto company named Forsage are facing severe charges of allegedly providing a bogus investment strategy to lure investors calling the scheme “a powerful long-term source of passive income.” Forsage raised US$300 million by running a pyramid and a Ponzi scheme where investors made money by recruiting others. 

The company posted videos that promised terrific returns for investors claiming Forsage to be  “fast and furious” for making a profit out of cryptocurrency. Four founders, Vladimir Okhotnikov, Jane Doe (known by her pseudonym Lola Ferrari), Mikhail Sergeev, Sergey Maslakov, and a few others, are to take the fall. 

According to the Securities and Exchange Commission (SEC), Forsage executives were not providing any investment strategy but running a scheme where the previous investors were paid with the money invested by newer investors, a Ponzi Hallmark!

Read More: Will Meta recover from the recent revenue decline? 

As per the Security regulators, the scheme was “aggressively marketed to investors” starting in 2020 and targeted retail investors willing to enter into crypto transactions. The charges will cover the financial risks of the crypto sector that has drawn a fair share of attention and scammers in the last few years. The SEC also charged three promoters based in the US who Forsage hired to tout the services. 

Carolyn Welshhans, acting chief of SEC’s Crypto Assets and Cyber Unit, said, “As the complaint alleges, Forsage is a fraudulent pyramid scheme launched on a massive scale and aggressively marketed to investors.”

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Disha Chopra
Disha Chopra
Disha Chopra is a content enthusiast! She is an Economics graduate pursuing her PG in the same field along with Data Sciences. Disha enjoys the ever-demanding world of content and the flexibility that comes with it. She can be found listening to music or simply asleep when not working!

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