US Securities and Exchange Commission, $300 million crypto ponzi scheme Forsage accused 11 people of fraud.
Forsage allegedly collected more than $300 million from retail investors illegally, according to an SEC statement released Monday. The SEC accused the organization’s four founders and a number of suspects of promoting the ponzi scheme.
“Scammers cannot circumvent federal securities laws by focusing their plans on smart contracts and blockchain,” said Carolyn Welshhans, chief of the SEC CryptoAssets and Cyber Unit, which led the investigation.
According to the SEC’s 2020 filing, the aforementioned founders created Forsage, a website that allows millions of retail investors to transact via smart contracts using the Ethereum, Tron, and Binance blockchain.
According to the SEC’s statement, Forsage users earn money by recruiting other people to join the scheme, which has been running for more than two years. Additionally, Forsage allegedly used funds from new investors to pay out previous investors, which the SEC says are typical Ponzi schemes.
According to the SEC, those accused in the case supported the crypto ponzi scheme in several YouTube videos. A YouTube channel claiming to be Forsage’s official channel has received around 170,000 views and has around 6,500 subscribers. The channel has about a minute long videos with people talking about how Forsage has improved their lives.
At the same time, Forsage’s website claims to have brought in more than 2 million participants. He says about 2,500 people joined Forsage in the past day, and members have likely been rewarded with over $1.35 billion since the website was launched.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.