The U.S. Securities and Exchange Commission (SEC) is slapping fraud charges against eleven individuals behind the Forsage blockchain platform.
The SEC says that the eleven allegedly “created, operated and maintained an online pyramid and Ponzi scheme through Forsage.io.”
According to the SEC, Forsage started operating at least since January 31st of 2020 and has received funds from US retail investors and others spread across the world.
“During the relevant time period, the Founders raised funds from retail investors in the United States and across the world through the unregistered offer and sale of securities in Forsage.
In connection with the offer and sale of those securities, the Founders engaged in a scheme to defraud investors and further engaged in practices that operated as a fraud or deceit upon those investors.”
“[Forsage.io] allowed millions of retail investors in [the] United States and elsewhere to enter into transactions via smart contracts created by the Founders that operated on the Ethereum, Tron, and Binance blockchains. To date, these transactions have totaled over $300 million.”
According to the SEC, Forsage relied on new deposits to pay earlier investors as it allegedly had no other known revenue source.
“Forsage is a textbook pyramid and Ponzi scheme. It did not sell or purport to sell any actual, consumable product to bona fide retail customers during the relevant time period and had no apparent source of revenue other than funds received from investors.
The primary way for investors to make money from Forsage was to recruit others into the scheme…
Thus, all payouts to earlier investors were made using funds received from later investors.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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