The United States Securities and Exchange Commission (SEC) has charged 11 individuals for creating and promoting a fraudulent crypto pyramid scheme and Ponzi scheme. The authority published a press release on August 1, saying that the $300 million crypto pyramid scheme involved perpetrators from several countries. The complaint was filed in the United States District Court in the Northern District of Illinois.
The pyramid scheme in question is Forsage, and its four founders have been known to be in Russia, the Republic of Georgia, and Indonesia. Three individuals in the U.S. have also been accused of promoting Forsage, as well as a group called Crypto Crusaders, which operated in the U.S. in five states.
Key Takeaways
- The SEC has charged 11 individuals for creating and promoting a fraudulent crypto pyramid and ponzi scheme.
- The founders were last located in Russia, the Republic of Georgia, and Indonesia,
- The scheme, called Forsage, allowed retail investors to enter into transactions on smart contracts.
- The investors were told they would receive profits if they recruited others into the scheme.
- The SEC is seeking injunctive relief, disgorgement, and civil penalties.
Forsage’s website allowed retail investors to enter into transactions on various blockchains, including Ethereum, Binance, and Tron. In typical pyramid scheme fashion, these investors were told that they would earn profits if they recruited others into the scheme. The SEC also says that Forsage…
