Forsage Crypto Executives Charged With Running $300 Million Ponzi Scheme

Eleven people who ran and promoted cryptocurrency firm Forsage are facing charges of operating a pyramid and Ponzi scheme that raised more than $300 million from millions of investors in the U.S. and elsewhere, according to the Securities and Exchange Commission. From a report: The Forsage executives posted videos that promised huge returns for investors, with one calling it "a powerful long-term source of passive income" and telling viewers, "Forsage means fast and furious." But securities regulators allege the service's founders weren't providing an investment strategy, but rather running a pyramid scheme, where investors made money by recruiting others. Also, earlier investors were paid through the money invested by newer customers, the hallmark of a classic Ponzi structure.

The charges underscore the financial risks of a sector that has drawn a fair share of fraudsters and scammers, aside from the massive price plunges that cryptocurrencies have experienced this year. In the case of Forsage, the service was created in 2020 and targeted retail investors who wanted to enter into crypto transactions via so-called "smart contracts" that operated on the ethereum, tron and binance blockchains. In addition to the four founders, the SEC also charged three U.S.-based promoters hired by Forsage to tout the service as well as several members of the Crypto Crusaders, a promotional group for the service, the SEC said.

God, so many suckers out there

[olsmeister]

I mean, shouldn't everyone know about this stuff by now? It's literally been years.

Re:

[Anonymous Coward]

Stupid people are a renewable resource with nearly unlimited supply.

redundant

[nomadic]

Cryptocurrency ponzi scheme is kind of redundant there.

Re:redundant

[MightyMartian]

It's interesting to see how the cryptopushers are starting to dry up. Even a few weeks ago one would still show up here to tell us how poor turnip farmers in Mongolia could use crypto to buy gasoline and turnip cooks in Siberia could buy those Mongolian turnips with crypto, and it was better than hard cash, and a thousand variations. Now, I suppose, the cryptobros made their heaps of actual money by taking advantage of cryptopushers, the cryptopushers are hiding from family they convinced that cryptocoins were going to be worth bazillions.

It astonishes me that it's been a century since Charles Ponzi first started conning people with the whole "incredible returns" line, and yet people keep falling for them. But this one is totally different because, you guessed it, "it's on a computer."

Re:

[Catvid-22]

It's interesting to see how the cryptopushers are starting to dry up.

Maybe they're just lying low until the heat dies down?

Re:

[Tablizer]

It's almost like reporting a kidnapper littered by leaving ransom notes everywhere.

Re:

[ceoyoyo]

A Ponzi scheme wrapped around a Ponzi scheme. Ponzi Inception.

Horse has well and truly bolted - Lame regulation

[Canberra1]

Good luck getting the founders with Russian looking names out of those countries - with the presumption that the money is also not in the country anymore, and gullible fools get exactly zero likely. The could be 100's of schemes with hired local frontmen going now, or in the future. After Madoff, you would think outrageous internet promo's would be the time to act. Wiser minds, just say I told you so. A natural progression from the Nigerian scams.

Life imitates art

[Local ID10T]

"Forsage means fast and furious."

Weren't most of them in jail or on the run at the end of that movie?

If something sounds too good to be true..

[gosso920]

... it usually is.