The founders of decentralized finance (DeFi) platform Forsage have been accused of playing a critical role in a $340 million pyramid scheme.
US Department of Justice (DOJ) In a press release by Forsage, the founders A 340 million dollar Ponzi scheme was charged with the business claim. The names of the four founding partners were at the center of the accusation. The four defendants, who are Russian citizensif found guilty 20 years in prison they can be sentenced.
First criminal fraud involving DeFi-based pyramid scheme recorded as a case Within the scope of the investigation, it was stated that the system used by the defendants was a typical ponzi scheme.
According to the results obtained from the researches of the Ministry of Justice, Forsage investors more than 80% earned less returns than they invested. On the other hand, investors included in the system more than 50% never got paid.
US Securities and Exchange Commission (SEC)started the trial process on the issue in August. At the end of the detailed investigation process that has been going on for 6 months, remarkable evidence has been reached that the Forsage system is a ponzi scheme. The following statements regarding the functioning of the system were included in the accusation file:
As soon as an investor invested in Forsage by purchasing a ‘slot’ in the Forsage smart contract, the smart contract automatically redirected the investor’s funds to other Forsage investors. Using this system, previous investors were paid with funds from subsequent investors.