Forsage Founders Indicted Over Purported $340M Ponzi Scheme

Four Forsage founders have been indicted by a federal grand jury in the District of Oregon for their alleged participation in a global Ponzi scheme. 

A press release from the US Department of Justice (DOJ) highlighted that the founders were alleged to have defrauded investors over $340 million while disguising their scheme as a decentralized matrix project.

The indictment alleges that the defendants aggressively advertised Forsage on social media platforms as a reliable and profitable business opportunity. Meanwhile, they ran it as a Ponzi and pyramid investment scheme that raised about $340 million from unwitting investors all over the world.

Based on the details, the defendants created a smart contract whereby investors joined Forsage by purchasing a “slot”. Subsequently, the smart contract was utilized to move money from one investment to another Forsage investor, guaranteeing that earlier investors received payment from later investors.

The news follows after the US Securities and Exchange Commission (SEC) filed charges against 11 people who directly and directly took part in the Forsage scam.

Law Enforcement Agents Hold Crypto Scammers Accountable

The US DOJ stated that it is committed to holding those responsible for defrauding investors accountable, particularly in the developing DeFi space. According to the report, the FBI Portland Field Office, USPIS, and HSI New York’s El Dorado Task Force are all looking into the Forsage fraud case.

As crypto scams have become a growing problem, with many people falling victim to fraudulent schemes that promise high returns on their investments, law enforcement organizations are progressively holding cryptocurrency scammers responsible for their deeds.

One of the difficulties with cryptocurrency scams is that they frequently traverse international borders, making it challenging for law enforcement organizations to find offenders. However, agencies are growing more skilled in their approach to thwarting crypto frauds, combining tried-and-true investigative methods with cutting-edge technology to find criminals.

For example, Indian authorities made statements that it would intensify its efforts to find Bitconnect founder, Satish Kumbhani, accused of running a $2.4 billion global Ponzi scheme in a US court.

Similarly, the Commodity Futures Trading Commission (CFTC) has filed a civil action against Avraham Eisenberg for executing a fraudulent scheme against the Mango Market exchange.