Forsage Scam $340M DeFi Crypto Scheme

In the world of cryptocurrencies, there have been numerous scams that have cheated investors of their hard-earned money. One such scam is the Forsage scam, which was recently in the news for allegedly defrauding people of over $340 million through a DeFi crypto scheme. In this article, we’ll take a closer look at what happened, who the founders are, and what the implications are for the cryptocurrency market.

Forsage Scam for $340M DeFi Crypto Scheme

We have recently come across an interesting case of fraud that has left many individuals empty-handed. As a result, we feel compelled to share our thoughts and opinions on the matter in hopes of providing some clarity and guidance to those affected by this unfortunate event.

In recent news, the founders of Forsage were indicted for a $340M DeFi crypto scheme that has left investors with nothing but empty promises. The founders, Lado Okhotnikov and Ruslan Krivobok, were charged with conspiring to commit wire fraud, and money laundering, among other charges.

What is Forsage?

Forsage is a cryptocurrency-based multilevel marketing (MLM) platform that claims to offer users the opportunity to earn passive income by participating in a matrix program. It was founded in February 2020 and quickly gained popularity in the cryptocurrency community. The platform uses the Ethereum blockchain and promises its users high returns on their investment.

However, the Securities and Exchange Commission (SEC) in the Philippines, where Forsage is based, has labeled the platform as an illegal investment scheme. The SEC has warned the public about investing in Forsage, stating that it is not registered to operate in the country.

In February 2021, the Philippine National Bureau of Investigation (NBI) filed a case against the founders of Forsage, alleging that they had defrauded people of over $340 million through a DeFi crypto scheme. The founders, Lado Okhotnikov and Ruslan Krivobokov, were arrested by the NBI and charged with violations of the Securities Regulation Code and the Anti-Money Laundering Act.

According to the NBI, Forsage operated as a pyramid scheme that promised high returns to investors who recruited new members to the platform. The scheme was allegedly promoted through social media, targeting vulnerable individuals who were looking to make quick money.

The NBI’s investigation revealed that Forsage had received over 10 billion pesos (approximately $200 million) in investments from its members. The funds were allegedly used to pay out commissions to earlier investors and to fund the lavish lifestyles of the founders.

In a press release issued on February 24th, 2021, the United States Department of Justice (DOJ) announced that two individuals, Lado Okhotnikov and Gary C. Leland, had been indicted for their alleged involvement in a $340 million DeFi crypto scheme operated by Forsage. The indictment accuses Okhotnikov and Leland of using Forsage to solicit investments from individuals and promising them significant returns, which they then allegedly misappropriated for their own personal use. The DOJ’s announcement provides further confirmation of the serious nature of the charges against Forsage’s founders, and serves as a reminder of the importance of due diligence when considering investments in cryptocurrency or DeFi projects. For more information on the DOJ’s indictment of Forsage, you can read their full press release on their website at: https://www.justice.gov/opa/pr/forsage-founders-indicted-340m-defi-crypto-scheme?fbclid=IwAR0NYyAGMB5aJ8RD5CnGn8dUSac6o-SzYooRL8lGwxjmKHXTD7cEY9orCQo

The Forsage scam highlights the need for investors to be cautious when investing in cryptocurrencies. While cryptocurrencies offer many benefits, such as decentralization and anonymity, they are also prone to scams and frauds.

The SEC in the Philippines has issued warnings about investing in cryptocurrencies and has urged the public to be vigilant when investing in such assets. The Forsage scam is just one example of the risks associated with investing in cryptocurrencies.

The Forsage DeFi platform is a decentralized finance platform that operates on the Ethereum blockchain. It claims to offer a way for users to earn cryptocurrency through a smart contract-based system. The platform is designed to be entirely self-sustaining, meaning that users do not need to rely on a central authority to manage their funds.

According to the indictment, the founders of the Forsage DeFi platform used the platform to conduct a Ponzi scheme. A Ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital of newer investors. The indictment alleges that the founders of the Forsage DeFi platform promised high returns to investors in exchange for their investment, and then used the capital of new investors to pay off earlier investors. In this way, the scheme was able to continue for a significant period, attracting more investors and more capital.

The indictment of the Forsage DeFi platform is significant for the cryptocurrency market, as it highlights the risks associated with decentralized finance platforms. While decentralized finance platforms offer the potential for high returns and reduced transaction fees, they also present a significant risk of fraud and scams. Investors must be careful when investing in cryptocurrency and should always conduct thorough research into the platforms they use.

Cryptocurrency investment can be highly lucrative, but it also comes with significant risks. One of the most significant risks is the lack of regulation and oversight in the industry. This leaves investors vulnerable to scams and Ponzi schemes, like the one allegedly operated by Forsage.

Investors should always conduct thorough research before investing in any cryptocurrency project. This includes checking the background and reputation of the individuals and teams behind the project, as well as reviewing the whitepaper and any other available information.

Investors should also be wary of any projects that promise unrealistic returns or make claims that seem too good to be true. These are often warning signs of a potential scam.

One effective way for investors to protect themselves from falling victim to crypto fraud is to diversify their portfolio. By spreading investments across multiple projects, investors can reduce their overall risk and avoid putting all their eggs in one basket.

Investors should also avoid making rash decisions based on fear or hype. The cryptocurrency market is highly volatile, and prices can fluctuate wildly based on news and other factors. Staying informed and keeping a level head can help investors make sound investment decisions and avoid falling victim to fraud and scams.

The recent indictment of the Forsage founders serves as a stark reminder of the risks associated with investing in cryptocurrency. Investors should always conduct thorough research, be wary of unrealistic promises, diversify their portfolio, and avoid making rash decisions. By following these guidelines, investors can protect themselves and their investments from falling victim to scams and frauds.