The founders of the alleged $340 million Forsage “global Ponzi” scheme have been indicted by a federal grand jury from the District of Oregon.
The four Russian founders – Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev and Sergey Maslakov – have been indicted for playing key roles in the scam that raked in an estimated $340 million from victim-investors, according to a statement from the Department of Justice (DOJ) on February 22.
“Today’s indictment is the result of a rigorous investigation that took months to unravel the systematic theft of hundreds of millions of dollars,” said US Attorney for the District of Oregon, Natalie Wight:
“Prosecuting foreign agents who used new technologies to commit fraud in an emerging financial market is a complicated task that is only possible with the full and complete coordination of multiple law enforcement agencies.”
Forsage had been touted as a low-risk decentralized financial platform built on the Ethererum blockchain that allowed users to generate long-term passive income. However, Blockchain analytics have revealed that 80% of Forsage “investors” have received less than they invested.
According to the DOJ, analysis of the smart contracts revealed that Funds raised as new investors bought “slots” in Forsage smart contracts were diverted to older investors, consistent with a “Ponzi scheme” or pyramid scheme.
Forsage still has an active Twitter accountwhich posted a thread on February 22 stating that community members who participate in “The Ambassador Program” could earn monthly rewards by completing certain tasks.
23
Pre-registration will open soon, so don’t hesitate to be among the first!
The Ambassador Program is an opportunity not only to earn rewards, but also to attract new members to the team, get to know the products better and broaden your horizons in the world of Web3.
— FORSAGE (@forsageofficial) February 22, 2023
23. Pre-registration will open soon, so don’t hesitate to be one of the first! The Ambassador Program is an opportunity to not only earn rewards, but also to attract new members to the team, learn more about the products and broaden your horizons in the world of Web3.
On August 1, the Securities and Exchange Commission charged the four founders and seven promoters with fraud and selling unregistered securities; the acting head of the SEC’s Crypto Assets and Cyber Unit, Carolyn Welshhans, said at the time:
“Fraudsters cannot circumvent federal securities laws by focusing their schemes on smart contracts and blockchains.”
The Philippine Securities and Exchange Commission had also flagged Forsage as a likely Ponzi in 2020, but a month later the platform was still the second most popular DApp on the Ethereum blockchain.
While an indictment refers to when a prosecutor files criminal charges and charges an individual or group with a crime, An indictment is brought by a grand jury if prosecutors are able to convince a majority of them that an indictment is warranted after investigation.
Grand juries are common in serious federal and state crimes.
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