Ethereum’s Vitalik Buterin has asked people to “call out scammers” operating within the cryptocurrency sector after the US Securities and Exchange Commission (SEC) charged an ethereum-based crypto firm with being a “fraudulent crypto pyramid and Ponzi scheme”.
The ethereum co-founder urged crypto platform Forsage.io to “please leave and don’t pollute the ethereum ecosystem”.
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Buterin’s Twitter outburst was in reference to a recent SEC charge against Forsage, which has been accused of running a fraudulent pyramid and Ponzi scheme since early 2020.
Forsage calls itself a ‘smart contract’ crypto earnings platform, but its activities caught the attention of the SEC.
The SEC said Forsage raised more than $300m (£244m) from investors around the world, including in the US via their website forsage.io, and that the group that runs the crypto-enterprise acted in a fraudulent way.
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The allegation is that Forsage has been operating as a pyramid scheme since its launch in January 2020 because investors earned profits by recruiting others into the scheme.
The SEC said that the group also allegedly used assets from new investors to pay earlier investors, a process typical of a Ponzi structure.
Forsage had been ordered to “cease-and-desist…
