The Securities and Exchange Commission has filed charges against 11 individuals for running and promoting a ‘textbook pyramid and Ponzi scheme’
Financial regulators in the US have been reluctant to come down on cryptocurrency for fear of stifling innovation, but there’s nothing innovative about Forsage. The Securities and Exchange Commission (SEC) has filed charges against 11 individuals for running and promoting Forsage, which the SEC says is a “textbook pyramid and Ponzi scheme.”Forsage operated on the Ethereum, Tron, and Binance blockchains, inviting users to invest in so-called smart contracts via aggressive online marketing. The service launched in early 2020, and even casual observers online called it out as a pyramid scheme at the time. Forsage did not have any way to create value and, as the SEC notes in its announcement of charges, all the payouts from Forsage came from the cryptocurrency put in by new investors.
