Cryptocurrency company suspected of stealing $ 300 million from depositors

The U.S. Securities and Exchange Commission (SEC) has indicted cryptocurrency company Forsage over the alleged theft of $ 300 million in investor funds and Ponzi scheme activity.

As it became known, the SEC suspects 11 people of promoting the Ponzi scheme, fraud, and stealing investor funds, including the founders and employees of the crypto company Forsage. According to the prosecutor’s office, Forsage was founded in 2020 as a platform that «helps users invest in cryptocurrencies.» Thanks to this assistance, hundreds of retail investors around the world lost their money.

According to the SEC, Forsage promised bonuses and rewards to investors who brought new investors to the company. Accordingly, the scheme worked as long as there were new investors who were willing to say goodbye to their money (of course, without knowing it).

As a reminder, Forsage is not the only crypto company that operated under the Ponzi scheme. Recently, it became known about 4 cryptocurrency projects that were charged by the US Department of Justice with similar charges: Baller Ape Club NFT, EmpiresX, Circle Society, and Titanium Blockchain Infrastructure Services. For example, the co-founders of EmpiresX, Emerson Pires, Flavio Gonçalves, and David Joshua, worked in a Ponzi scheme. They sold unregistered securities and guaranteed investors high returns by paying funds received from new investors to previous investors. The fraudsters face 25 to 45 years in prison.