11 Individuals Arrested by the US SEC in a $300m crypto Pyramid Scheme

Estimated read time 3 min read
  • The US SEC has prosecuted 11 individuals who are believed to have been involved in a $300m crypto Ponzi scheme.
  • The 4 co-founders and 7 promoters of what the SEC termed a ‘Fraudulent Ponzi Structure appeared in a court in a United States District Court in Illinois.

Crypto Fraudsters Arrested in US and UK

In a major crackdown on cryptocurrency fraud, the US Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA) have arrested several individuals involved in a Ponzi scheme that raised over $300 million from retail investors.

The scheme, known as Forsage, was designed to recruit new investors to the platform by promising them high returns on their investment. However, the SEC alleges that Forsage was actually a Ponzi scheme, and that the only way for investors to make money was to recruit new investors into the scheme.

The SEC has charged four individuals with running Forsage: Vladimir Okhotnikov, Jane Doe aka Lola Ferrari, Mikhail Sergeev, and Sergey Maslakov. The FCA has also charged several individuals who promoted Forsage in the UK.

The arrests are a sign that regulators are taking a tougher stance on cryptocurrency fraud. In recent years, there has been a surge in cryptocurrency fraud, with scammers often using social media and other online platforms to target victims.

The SEC and the FCA have issued warnings to investors about the risks of cryptocurrency investments, and have urged investors to do their research before investing in any cryptocurrency.

UK Cracks Down on Misleading Crypto Ads

In addition to the arrests, the UK government has also taken steps to crack down on misleading cryptocurrency advertising. In April 2023, the FCA issued new rules that prohibit cryptocurrency firms from making certain types of claims in their advertising. For example, cryptocurrency firms are now prohibited from making claims about the future performance of their products, or from claiming that their products are a “get rich quick scheme.”

The FCA’s new rules are part of a wider effort by the UK government to protect consumers from financial fraud. The government has also introduced new rules that require cryptocurrency firms to register with the FCA and to comply with certain financial regulations.

The UK’s crackdown on cryptocurrency fraud is a positive development for investors. The new rules will help to protect investors from scams and will help to ensure that the cryptocurrency industry is regulated in a fair and transparent way.

The Future of Crypto Marketing

The future of crypto marketing is uncertain. The UK government has yet to announce how it will regulate crypto marketing, and it is possible that the government will introduce further restrictions on crypto advertising.

However, the cryptocurrency industry is growing rapidly, and it is likely that there will be a demand for crypto marketing in the future. Crypto firms will need to find ways to market their products and services without misleading investors.

The best way for crypto firms to market their products and services is to be transparent and honest about the risks involved in investing in cryptocurrency. Crypto firms should also avoid making any promises about the future performance of their products or services.

By being transparent and honest, crypto firms can help to protect investors from scams and can build trust with the public.

You May Also Like

More From Author

+ There are no comments

Add yours