EDUSELL
Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Crypto News

Russian Founders Of Defi Platform Forsage Indicted In $340 Million Crypto Ponzi Scheme

Admin by Admin
February 27, 2023
in Crypto News
0
Russian Founders Of Defi Platform Forsage Indicted In $340 Million Crypto Ponzi Scheme
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter
MMC MMC

Four Russians have been charged in the U.S. with operating a crypto pyramid and Ponzi scheme that defrauded investors of millions of dollars. If convicted, they would face a maximum penalty of 20 years in prison for their roles in the purportedly decentralized finance (defi) platform Forsage.

A federal grand jury in the District of Oregon returned an indictment on Wednesday charging the founders of a defi crypto investment platform for what authorities believe to have been a global Ponzi scheme. The entity, Forsage, allegedly raised around $340 million from its victims, according to an announcement by the U.S. Justice Department.

All four indicted Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev, and Sergey Maslakov are citizens of the Russian Federation. Some of them used one or more aliases while aggressively promoting the project through its website and social media as a legitimate, lucrative, and low-risk business opportunity. Sergeev, for example, presented himself as Mike Mooney or Gleb Million.

Forsage was advertised to the public as a decentralized matrix project based on network marketing and smart contracts. In reality, it was set up and run as a Ponzi and pyramid investment scheme that defrauded investors around the world. The defendants are each charged with conspiracy to commit wire fraud. If convicted, they would face up to 20 years in prison.

Court documents suggest that the Russian nationals deployed smart contracts on the Ethereum, Binance Smart Chain, and Tron blockchains. Analysis of the code showed that as soon as someone invested in Forsage by buying a so-called “slot” in a smart contract, the funds were used to pay earlier Forsage investors.

Blockchain forensics confirmed that over 80% of Forsage investors received fewer ether (ETH)back than they had invested in its Ethereum program. Moreover, at least one smart contract was used to divert investors’ money to cryptocurrency accounts controlled by the founders.

Forsage was launched online in January 2020. The indictment of the Russians comes after in August, last year, the U.S. Securities and Exchange Commission (SEC) charged 11 people, the four co-founders and seven promoters of the platform, for their participation in creating and promoting the fraudulent crypto pyramid and Ponzi scheme.

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Tags: CryptoCryptocurrencyDefiponzi schemeRussian founders
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

IMF Calls for More Crypto Regulation

Next Post

Cryptocurrency Exchange Binance Recruiting Personnel for Romania Offices

Admin

Admin

Next Post
Cryptocurrency Exchange Binance Recruiting Personnel for Romania Offices

Cryptocurrency Exchange Binance Recruiting Personnel for Romania Offices

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
Mayowa Owolabi on battles traders need to fight

Battle Every Trader Must Fight (Part 1)- Mayowa Owolabi

August 31, 2022
Virtual stadium in the metaverse

Why Virtual Stadium Can Be the Next Big Thing in the Metaverse

January 26, 2023
EUR/USD pair

EUR/USD Recovers from 20-year Lows

2
What is Initial Coin Offering?

Initial Coin Offering (ICO)

0
What is staking?

Staking

0

Defi (Decentralized Finance)

0
What is Zcash

What is Zcash (ZEC)?

March 20, 2023
World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

March 20, 2023
Former Coinbase CTO bet on bitcoin

Former Coinbase CTO Bets $1 Million on Bitcoin

March 20, 2023
Gold rallies to peak

Gold Rallies to Over 1-year Peak, Further Beyond $2,000 Mark

March 20, 2023

Recent News

What is Zcash

What is Zcash (ZEC)?

March 20, 2023
World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

March 20, 2023
Former Coinbase CTO bet on bitcoin

Former Coinbase CTO Bets $1 Million on Bitcoin

March 20, 2023
Gold rallies to peak

Gold Rallies to Over 1-year Peak, Further Beyond $2,000 Mark

March 20, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Forex News
  • Gaming
  • Review
  • Reviews
  • Stocks
  • Uncategorized

Recent News

What is Zcash

What is Zcash (ZEC)?

March 20, 2023
World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

World’s Largest Asset Manager BlackRock Is Exploring Tokenization Of Stocks

March 20, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>