E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Hackaday Links: August 7, 2022

August 7, 2022

Despite Bear Market, 2022 Fundraisings Already Surpassed 2021: Messari

August 7, 2022

Build A Tablet Out Of Your Framework Motherboard

August 7, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»SEC Charges Eleven Individuals Linked to the Crypto Pyramid Scheme Forsage
Crypto

SEC Charges Eleven Individuals Linked to the Crypto Pyramid Scheme Forsage

Paul EasterBy Paul EasterAugust 2, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email


On August 01, the Securities and Exchange Commission of the United States charged 11 individuals for promoting and participating in a crypto pyramid scheme called Forsage, through which they managed to obtain more than 300 million dollars globally.

The SEC reports that the defendants include 4 founders who were last seen in Russia and 3 promoters who are in the U.S., among other members of the Crypto Crusaders group, who were engaged in promoting the Ponzi scheme.

The logo of the crypto ponzi scheme forsage
Forsage Logo

Forsage Operated as a Pyramid Scheme for 2 Years

Forsage was created under the premise of working as a bridge between Ethereum, Tron, and Binance. The platform was supposed to make it possible to execute smart contracts across different chains. However, it operated as a crypto pyramid scheme for two years, using the money from new investors to pay old ones and reward those who recruited more people.

According to the press release, the SEC had sent cease and desist letters to Forsage in late 2020 and March 2021; however, the platform’s founders decided to ignore regulators and instead kept denying the crypto fraud allegations through their YouTube accounts while continuing to promote the use of the platform.

Carolyn Welshhans, Acting Chief of the SEC’s Crypto Assets and Cyber Unit, said that the “Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains,” harming retail investors who put their savings in this type of platforms trusting the promoters’ promises.

For now, two of the US-based defendants agreed to pay disgorgement and civil penalties as determined by the court to resolve the charges imposed by the SEC, being cleared of any further violations.

The SEC And The FBI Team Up to Fight Crypto Crime

As CryptoPotato recently reported, the SEC has charged several individuals after crypto-related activities, including a former Coinbase executive. The arrest of  Ishan Wahi, as the first case of insider trading within the crypto industry closed by the SEC, demonstrating a more active role for the SEC in enforcing the law on actors who use cryptocurrencies to promote scams, theft, and pyramid schemes, among other criminal activities.

Even Michael J. Driscoll, deputy director of the FBI, said that the agency is taking a more active position within the crypto ecosystem to prevent criminals from taking advantage of loopholes in cryptocurrencies to commit their crimes.

Likewise, on August 1, New York Attorney General Letitia James urged all New Yorkers who have been victims of any cryptocurrency scam to file a complaint so that the prosecutor’s office can take action.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link

Paul Easter

Related Posts

Despite Bear Market, 2022 Fundraisings Already Surpassed 2021: Messari

By Paul EasterAugust 7, 2022

Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

By Paul EasterAugust 7, 2022

ETH Facing Huge Resistance, Is Major Correction Inbound Before $2K? (Ethereum Price Analysis)

By Paul EasterAugust 7, 2022

BTC-e Operator Who Used Bitcoin to Launder $4B Extradited to U.S. to Face Charges

By Paul EasterAugust 7, 2022
Add A Comment

Comments are closed.

Our Picks

Hackaday Links: August 7, 2022

By Paul EasterAugust 7, 2022

Despite Bear Market, 2022 Fundraisings Already Surpassed 2021: Messari

By Paul EasterAugust 7, 2022

Build A Tablet Out Of Your Framework Motherboard

By Paul EasterAugust 7, 2022
Recent Posts
  • Hackaday Links: August 7, 2022 August 7, 2022
  • Despite Bear Market, 2022 Fundraisings Already Surpassed 2021: Messari August 7, 2022
  • Build A Tablet Out Of Your Framework Motherboard August 7, 2022
  • Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview) August 7, 2022
  • India poised to achieve $5 trillion economy dream through ‘Atmanirbhar Bharat’ strategy, says expert August 7, 2022
  • Sister’s Day 2022: Date, Significance, WhatsApp message, greetings August 7, 2022
  • Homemade CAT Scan Shouldn’t Scan Cats August 7, 2022
Archives
  • August 2022
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.