The founder behind the alleged $340 million “Global Ponzi” scheme Forsage has been indicted by a federal grand jury in the District of Oregon.
Four Russian founders – Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev, and Sergey Maslakov – have been officially accused of having a key role in the scheme that raised approximately $340 million from victim-investors, according to February 22 Department of Justice (DOJ). ) statement.
“Today’s indictment is the result of a rigorous investigation that spent months into the systematic theft of hundreds of millions of dollars,” said U.S. Attorney Natalie Wight for the District of Oregon, adding:
“Bringing charges against foreign actors who use new technologies to commit fraud in emerging financial markets is a complex endeavor that can only be accomplished with the full and comprehensive coordination of multiple law enforcement agencies.”
Forsage has touted itself as a low-risk decentralized finance (DeFi) platform built on the Ethereum (ETH) blockchain that supposedly allows users to generate long-term passive income, Blockchain analytics but it is reported that 80% of Forsage’s “investors” have been accepted. less return than they put in.
According to the DOJ, the analysis of smart contracts revealed that the funds collected as new investors bought “slots” in smart contracts Forsage diverted to old investors, as consistent with “Ponzi schemes.”
Forsage still has an active Twitter account, which posted a thread on February 22 stating that community members participating in the “Ambassador Program” will be able to earn monthly rewards by completing certain tasks.
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Pre-registration is about to open, so don’t hesitate to be the first!
The Ambassador program is an opportunity not only to earn rewards, but also to attract new members to the team, better understand the product and expand your horizons in the Web3 world.
– FORSAGE (@forsageofficial) February 22, 2023
On August 1, 2022, the Securities and Exchange Commission (SEC) charged four founders and seven promoters with fraud and the sale of unregistered securities, with acting chief of the SEC’s Crypto Assets and Cyber Unit, Carolyn Welshhans, noted at the time:
“Fraudsters cannot avoid federal securities laws by focusing their plans on smart contracts and blockchains.”
The Philippine Securities and Exchange Commission has also flagged Forsage as a possible Ponzi in 2020, but a month later the platform is still the second most popular DApp on the Ethereum blockchain.
related: Crypto, forex platform CEO pleads guilty to $248M fraud scheme
When an indictment indicates that the prosecutor is conducting a criminal prosecution and accuses an individual or group of a crime, an indictment is presented by a grand jury if the prosecutor can convince a majority of the people that formal charges are given after an investigation. .
Grand juries are common in Federal and serious state crimes.