U.S. Securities and Exchange Commission in a recent press release cryptocurrency what he calls a ponzi scheme of Forsage announced that a lawsuit has been filed against 11 people who took part in the establishment and promotion of it.
Among those charged were Forsage’s four known founders, who live in Russia, Georgia and Indonesia, as well as three US-based backers who were hired to market Forsage.
In the statement made by the SEC, it was stated that the project uses the assets of new investors to pay previous investors, and as such, it is a complete ponzi scheme.
“The SEC has indicted 11 people for their roles in founding and promoting Forsage, a crypto ponzi scheme that has raised more than $300 million from millions of retail investors worldwide, including the United States.
It was determined that the marketing group operates in 5 different states in the USA.
The SEC claims that Forsage has been operating for more than two years as a ponzi scheme where investors profit by involving others in the scheme. Forsage also allegedly uses new investors’ assets to pay out previous investors in a typical ponzi structure.”
The statement also included the following statements by Carolyn Welshhans, SEC’s Deputy Head of Crypto Assets:
“Forsage is a fake ponzi scheme launched on a large scale and aggressively marketed to investors.
Scammers cannot circumvent federal securities laws by focusing their plans on smart contracts and blockchains.”