CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,960.00
  • ethereum
    ETH$1,580.05
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » SEC Charges Eleven Individuals Linked to the Crypto Pyramid Scheme Forsage

    SEC Charges Eleven Individuals Linked to the Crypto Pyramid Scheme Forsage

    Author: Felix Mollen

    Last Updated Aug 2, 2022 @ 02:32

    The SEC pressed charges against 11 individuals for participating in Forsage, a crypto Ponzi scheme. Of them, 2 already agreed to pay civil penalties.

    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.

    ADVERTISEMENT

    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.

    You Might Also Like:

    • cftc_img
      CFTC Charges Two Men Behind $44 Million Crypto Ponzi Scheme
    • Rainbow
      The LGBTQIA+ Community Must Beware for Crypto Scams, US Authorities Warn
    • arrest_cover
      CEO of Titanium Blockchain Pleads Guilty to Securities Fraud
    Tags: Crypto Scams SEC United States
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Felix Mollen
    More posts by this author

    Felix got into Bitcoin back in 2014, but his interest quickly expanded to everything blockchain-related. He's particularly excited about real-world applications of blockchain technology. Having worked as a professional content writer for three years before that, Felix transitioned to working on blockchain-centered projects and hasn't looked back ever since.

  • bitcoin
    BTC$22,960.00
  • ethereum
    ETH$1,580.05
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!