Forsage Co-Founder Denies Charges in Alleged $340 Million Crypto Ponzi Scheme

Odaily News: Olena Oblamska, co-founder of crypto platform Forsage, has pleaded not guilty to charges of conspiracy to commit wire fraud after being extradited from Thailand to the United States.

Forsage launched in January 2020 and was marketed to retail investors worldwide as a smart contract-based DApp investment platform. The U.S. Department of Justice alleges the platform utilized smart contracts on Ethereum, TRON, and BNB Chain to automatically redirect funds from new participants to earlier investors, characterizing it as a Ponzi and pyramid scheme.

Blockchain analysis indicates that over 80% of Forsage investors received less cryptocurrency than they deposited, and more than 50% received no returns at all. The scheme defrauded victims in the United States, Europe, Asia, and Latin America of approximately $340 million. The U.S. Securities and Exchange Commission previously filed a civil lawsuit against those involved in August 2022. (financefeeds)