The American Securities and Exchange Commission (SEC) has accused the Forsage founders of creating a worldwide pyramid scheme.
Last Monday, the SEC Forsage founders and funders in total, including Charged 11 people. According to the lawsuit filed by the Illinois district court, the Forsage team including America and Russia a global “Ponzi schemeThey are on trial for operating the ” scheme. The extent of the fraud in question is based on preliminary studies. 300 million dollars is estimated as.
System used by scammersa typical ponzi schemeIt was stated that the underlying logic is based on the fact that current users gain capital gains by attracting new users to the system. This pyramid scheme continues to grow, inflating an unrequited capital flow, while promising new investors high returns on low-risk investments. At some point, the chain erupts as new investors decrease and the system cannot pay users.
According to documents submitted by the court, the SEC made the following statements:
Forsage platform has not made any real, tangible deposits available to its users during the relevant period. The only source of income for the system was funds received from investors. The primary way for investors to monetize Forsage was to involve others in the system.
vice president of the SEC’s Crypto Assets and Cyber Division Carolyn Welshhansthe system implemented by Forsage “a bogus pyramid scheme that is large-scale and aggressively marketed to investors” he described. Welshhans continued his statement on the subject, “Scammers cannot circumvent federal securities laws by focusing their plans on smart contracts and blockchains.” he stated.
11 defendants, including company founders and supporters, are on trial for “fraud” under US law. The social media accounts of the Forsage platform are still open and the court is demanding that steps be taken to close these accounts as soon as possible.