SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme

The Securities and Exchange Commission today charged 11 individuals for their roles in creating and promoting Forsage, a fraudulent crypto pyramid and Ponzi scheme that raised more than $300 million from millions of retail investors worldwide, including in the United States….

According to the SEC’s complaint, in January 2020, Vladimir Okhotnikov, Jane Doe a/k/a Lola Ferrari, Mikhail Sergeev, and Sergey Maslakov launched Forsage.io, a website that allowed millions of retail investors to enter into transactions via smart contracts that operated on the Ethereum, Tron, and Binance blockchains. However, Forsage allegedly has operated as a pyramid scheme for more than two years, in which investors earned profits by recruiting others into the scheme.  Forsage also allegedly used assets from new investors to pay earlier investors in a typical Ponzi structure.

Source: SEC.gov | SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme