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

Odaily News: Olena Oblamska, co-founder of the 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 was launched in January 2020 and marketed to global retail investors as a smart contract-based DApp investment platform. The U.S. Department of Justice alleges that the platform utilized smart contracts on Ethereum, TRON, and BNB Chain to automatically redirect funds from new participants to early investors, constituting a Ponzi and pyramid scheme.

Blockchain analysis shows that over 80% of Forsage investors received less cryptocurrency than they deposited, and more than 50% obtained zero returns. The scam defrauded victims from 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 the involved individuals in August 2022. (financefeeds)