Over there SECthe US authority overseeing the US stock exchange and more generally financial products has alleged Ponzi scheme linked to cryptocurrency. 11 people are accused of creating and promoting what appears to be a pyramid scheme.

Is called forage and according to the SEC, the project was based entirely on a fraudulent scheme, i.e. by the simulation of huge profits guaranteed only to the first investors by the constant influx of new capital introduced by new investors, in turn misled by the astonishing promises of the founders of the project.

According to the US authority, this criminal plan would have taken away investors as a whole 300 million dollars. It goes without saying that most of this pie has gone straight into the mouths of the project’s founders, while when all goes well the crumbs have arrived at the investors and when things go badly, nothing has arrived.

Forsage has had a pyramid scheme for over two years, investors could only get a cash reward by bringing new investors into the plan. The assets introduced by the new investors were then used to repay the former, in the most classic patterns of Ponzi schemes

reads a statement from the SEC.

Carolyn Welshhans, head of the SEC’s Crypto Assets division, added that “I scammers they cannot get around federal laws on financial products” and there is no point in translating criminal schemes from the world of traditional finance into those of “smart contracts and the blockchain”.

The four co-founders of Forsage are all Russian citizens, but the authority has also called up seven employees of the project, all of whom reside in the United States of America. Two of the employees have already agreed to settle with the SEC, hoping to get a lenient sentence.

Source: Lega Nerd

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