11 accused of defrauding millions of investors

The US Financial Police have charged 11 people with setting up a gigantic cryptocurrency scam. Baptized Forsage, the project is based on a completely classic Ponzi pyramid. Through this system, they have raised $300 million from thousands of investors around the world.

The Securities and Exchange Commission (SEC), the federal agency responsible for controlling U.S. financial markets11 indicted Accused of setting up a massive cryptocurrency scam.

In a press release issued on Monday, August 1, 2022, the federal agency identified a drilling. The Forsage.io website was launched in January 2020, allowing investors to Transactions are executed through smart contracts running on the Ethereum blockchain”. Transactions via the Tron network and Binance Smart Chain are also available.

On the same topic: How Youtuber Crypto Gouv stole €4M by tricking subscribers

Ponzi schemes and aggressive social media advertising

According to the SEC’s investigation, Forsage relied on Ponzi scheme. In a pyramid scheme, investors make money by bringing in new members. The oldest member gets paid due to the assets deposited by new investors.As the SEC explained, Forsage has Paying previous investors with new investors’ assets”.

Forsage is a fraudulent pyramid scheme launched at scale and aggressively marketed to investors”said Caroline Welshhans, acting head of the SEC’s crypto division.

On its website, Forsage does claim entrance fee Internet users who wish to join the community. The cost of ether varies from 10 euros to about 75 dollars. Once the investor pays the entry fee, he will be able to make a profit by attracting other users. To join the site, Internet users must go through a referral link.

You will be rewarded whenever a new partner joins your team. To do this, you need to invite new partners and grow your team. Use your referral link for this »Detailed description of Forsage support services, indicating revenue received Depends on your team’s individual effort and performance”.

The service desk states that it is Forsage can’t lose money, because the profit does not depend on the price of the cryptocurrency. Therefore, the growth of the platform is entirely based on the assets injected by the new entrants. This is the essence of a Ponzi scheme.

In order to promote the website, the administrator has Post a lot of advertisements on social networksStill, most platforms have taken steps to stem the influx of ads promoting cryptocurrencies. This is especially true of TikTok, which banned such ads in July 2021, and Twitter, which tightened its policies in 2018.

For its part, Facebook has long banned cryptocurrency-related ads. Still, social networks are flooded with ads that evoke digital assets in half-word form.Notice The ban was finally lifted last year. From now on, ads dedicated to encrypted services will be authorized on Facebook.

Four founders charged

Through aggressive promotions, Forsage was able to raise over $300 million. The SEC says millions of retail investors around the world, including in the U.S., trust the platform. However, the team clarified that Forsage never hold any participant’s money”. The injected funds are managed in a decentralized manner by smart contracts deployed on the blockchain.

Since the system is decentralized, no one controls your winnings. You are in charge, only you can decide how fast you want to win”detailing assistance services.

U.S. financial regulator announced Sue the four founders of Forsage, namely Vladimir Okhotnikov, Jane Doe alias Lola Ferrari, Mikhail Sergeev and Sergey Maslakov. At this time, authorities do not know where these people are. According to the SEC, the founders live in Russia, Georgia and Indonesia.

U.S. authorities have also indicted several of Forsage’s promoters, including three people living in the United States. The two promoters have agreed to settle the allegations. Contact us, Forsage team denies Rely on the pyramid system.

We are a decentralized system that does not obey any regulator on the planet”Vigorously announced team members that the SEC complaint is Free publicity for Forsage”.

We also asked the team How Forsage Executives Generate Revenue. According to viewers, admins make money like all members…by recruiting other users.

resource:

dry

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