US SEC Charges 11 People in $300 Million Crypto Pyramid Scheme

The Securities and Exchange Commission has filed a lawsuit against 11 culprits who were involved in a pyramid scheme spanning above $300 million. The last known locations of the culprits are Russia, Georgia, and Indonesia. According to a statement that the SEC gave on Monday morning, no one is allowed to tamper with the security laws, regulatory offices are there for a reason, and that is to protect people against such fraudulent activities.

SEC’s Strict Actions Against the Culprits

On a more serious note, SEC has said that not only all the activities of the fraud company by the name of Forsage are now seized, but the owners and co-founders, 11 to be total, will be brought to justice. The overall earning model of the firm was to lure investors into investing their money into lucrative crypto-oriented opportunities orchestrating the whole thing by smart contracts and over the Ether and Binance blockchain environment.

For an investor to really earn their profit, they would have to invite and bring more people into the circle, and if they managed to do this, only then would they get paid. Hence the probability of the Pyramid scheme is only good until it isn’t. Not only do you lose the investment that you have made in such schemes, but the terror hovering over your head about a potential lawsuit is always there.

The report has further confirmed that it is not only the owners who will be facing the full wrath of the SEC but many other promoters and those involved in this scheme in a passive capacity. It means that apart from the owners, people who used to promote the functions of the firm online or over social media channels would also come under the regulatory oversight of the SEC.

As for the affected investors of the Forsage group, a list is being compiled to know the full extent of the damage and in what particular manner people were robbed of their riches. Behind such types of schemes, the only propellent is greed and an urge to recruit more and more people so the pyramid would keep on building itself.

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