Forsage Co-founders Charged by US SEC in Extensive Ponzi Scheme

The United States Securities and Exchange Commission (SEC) has charged 11 people who allegedly were part of the $300 million Forsage global crypto scam. 

These 11 individuals were, directly and indirectly, involved in creating and promoting the Forsage platform, which according to the SEC is a “fraudulent crypto pyramid and Ponzi scheme”. 

The $300 million was siphoned from millions of retail investors all over the world. 

Amongst those charged are the four co-founders of the decentralized networking platform, Vladimir Okhotnikov, Sergey Maslakov, Jane Doe a/k/a Lola Ferrari (real name unknown), and Mikhail Sergeev. Three promoters who are based in the U.S. were also indicted as they were contacted by Forsage to endorse the scheme on their websites and their social media platforms. The others are members of a popular rogue-like group, Crypto Crusaders.

The Crypto Crusaders were the largest promoters of the Ponzi scheme in the whole of the United States. Sergey Maslakov and Mikhail Sergeev were last seen in Moscow, Russia, while Vladimir Okhotnikov was seen in the Republic of Georgia and Jane Doe was last located in Indonesia. 

Forsage Operational Modalities

The Forsage decentralized networking platform was launched two years ago under the leadership of software developers Vladimir Okhotnikov, Sergey Maslakov, Jane Doe a/k/a Lola Ferrari, and Mikhail Sergeev. 

Its design allows retail investors to enter into transactions via smart contracts that operated on the Ethereum (ETH), Tron, and Binance blockchains. The investors are promised profit when they are able to recruit others into the scheme thereby making it a pyramid scheme.

In its two years of operation, the Forsage platform was paying its old investors with funds contributed by new investors making it a Ponzi scheme. 

This will not be the first time the activities of the platform have been brought to the notice of security agencies. The same year which Forsage commenced operation, its activities roused suspicions with the SEC in the Philipines. The Philippines SEC had to carry out a cease-and-desist order on the platform.

A year after, the Montana Commissioner of Securities and Insurance also issued a cease-and-desist order. This has in no wise deterred the pyramid and Ponzi scheme platform from continuing its operations.

Ponzi schemes take different forms and can be organized using different digital coins. The onus thus lies on investors to do their due diligence as much as regulators will keep cracking down on criminals.

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