bitcoinBTC/USD
$ 23,474.29
ethereumETH/USD
$ 1,852.75
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.541104
xrpXRP/USD
$ 0.377444
usd-coinUSDC/USD
$ 1.00

11 individuals charged by SEC over $300 million Crypto Pyramid Scheme

Rea Kolgeci

11 people have been charged by the Securities and Exchange Commission (SEC) for allegedly helping to establish the “fraudulent crypto pyramid scheme” platform Forsage.

The SEC filed accusations in an Illinois federal court on Monday, saying that the platform’s creators and promoters used a “fraudulent crypto pyramid and Ponzi scheme” to raise more than $300 million from millions of retail investors worldwide.

In a typical Ponzi structure that included the US and Russia, Forsage was created in a way that permitted investors to make money by recruiting new investors, according to the SEC lawsuit.

The SEC defines a Ponzi scheme as an investment scam that rewards current investors with money raised from new investors. These schemes usually use the promise of investing money in opportunities with large returns and low risk to bring in new investors.

The SEC claimed the following in the court document:

“It had no visible source of revenue other than the money collected from investors throughout the relevant time period and did not sell or represent to sell any genuine, consumable goods to bona fide retail customers. Investors’ main method of profiting from Forsage was through enlisting others as members.”

In order to buy ‘slots’ from Forsage’s smart contract, new investors must first create a crypto-asset wallet, according to the SEC.

Infractions of “Unregistered Offers and Sales of Securities” under sections 5A-C and “Fraud” under sections 17(a) (1&3) of the US Securities Act have been brought against all 11 people. Additionally, the defendants are accused of “Fraud” in violation of US Exchange Act Sections 10B-C.

According to Welshhans, these efforts allowed the Ponzi structure to take advantage of the enormous scale that retail investors’ purchases of the model over the previous two years gave it.

Also read:

Related News

Ethereum’s Last Test Run Before the Biggest Crypto Event is Over.

The last practice run for Ethereum’s long-awaited update, which has been touted as one of the most significant events in the history of cryptocurrencies, was just completed.  The so-called proof-of-work technique has been used for mining Ethereum since the cryptocurrency was launched about a decade ago. It needs an excessive amount of energy as well as the solving of difficult mathematical problems by an enormous number of competing machines. The

Read More »

More trouble for Coinbase as the US Supreme Court rejects its appeal

The SEC is investigating Coinbase, the largest cryptocurrency exchange in the US, for allegedly listing securities on its platform. The Supreme Court’s denial of the exchange’s plea has caused yet another major problem. According to Bloomberg, the US Supreme Court rejected Coinbase’s request to submit its user disagreement to arbitration right now. It was said that the court’s request for the justices to intervene in the case was rejected. The

Read More »

Hodlnaut Has Become the Latest Crypto Lender Platform to Block Withdrawals

The cryptocurrency lending platform Hodlnaut, which is headquartered in Singapore, has halted withdrawals, token swaps, and deposits, blaming “current market circumstances.” This makes Hodlnaut the latest in a series of cryptocurrency companies to go out of business since May. According to the notice made on Monday, the business also stated that it will revoke its registration with the Monetary Authority of Singapore (MAS) to provide digital token payment services. According

Read More »

My Coins

bitcoinBitcoin
$ 23,474.293.71%
ethereumEthereum
$ 1,852.754.72%
cardanoCardano
$ 0.5411046.32%
tetherTether
$ 1.000.05%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]