Four Russians will go jail over crypto pyramid scheme Forsage

Forsage founders are now very near to facing punishment behind bars for up to 20 years. 

Forsage is a smart contract, which was built on the Ethereum blockchain network. We can compare Forsage as a Multi-level Marketing (MLM), basically a money rotation scheme, which was popular in almost every country but for fiat currencies investment system. Forsage smart contract was developed in early 2020 and it became a popular crypto investment platform. Later team behind this platform developed code on the Tron blockchain, so that crypto Investors can easily save some money, as gas fees on the Ethereum network was very high. The project team also introduced xGOLD gameplay. Because of the popularity of Forsage, another crypto investment platform entered the sector with the name Forsage BUSD, unconfirmed whether developed by the same team or a different one.

Recently a federal grand jury in the District of Oregon alleged that Forsage founders promoted as a fully decentralised & genuine platform to invest crypto assets to get better returns. US authorities also noted that all the culprits were attracting huge numbers of people through their better marketing strategies. 

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division commented:

“Together with our partners, the department is committed to holding accountable fraudsters who cheat investors, including in the emerging DeFi space. Today’s indictment showcases the department’s ability to use all available investigative tools, including blockchain analysis, to uncover sophisticated frauds involving cryptocurrency and digital assets.”

Investigations revealed that all the defendants ran their Ponzi scheme on Ethereum, Tron & Binance Smart Chain (BSC) network. 

These defendants are Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev, and Sergey Maslakov. And these guys scammed people for around $340 million. Through the Forsage, early Investors received money from the pocket of new investors but new investors received nothing, as it was a ponzi scheme just like MLM & Matrix system which was also popular from 2017 to 2018. 

All these defendants may face jail punishment for up to 20 years over charges of committing wire fraud. 

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