In the shape of a Ponzi scheme, the US government has prosecuted 11 persons in connection with a cryptocurrency fraud that was worth $300 million. The great majority of customers really made a loss, while a select few, including the company's original developers, made significant gains in ether. They have not ceased their operations in the other civilization.
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The conflict in Ukraine and the tensions between Washington and Moscow don't always prevent the US and Russia from maintaining their relationship on cryptos. There is no concern about geopolitics inside the International of Crooks 2.0. The police of the American markets have brought charges against eleven persons, three of whom are located in Russia, seven of whom are located in the United States, and one of whom is located in Bali. The Securities and Exchange Commission (SEC) has reason to believe that they are operating a pyramid scheme with a value of $300 million.
Investors gained money by recruiting new members on behalf of the Forsage network, which "used their money to pay older clients, a common practice of Ponzi schemes." Investors made money by recruiting new participants on behalf of the Forsage network. Ponzi schemes were responsible for losses of $3.8 billion in the United States in 2021. These schemes might include any asset (stocks, loans, cryptocurrencies, etc.) or form of investment.
Towards the perfect moment, at the end of January 2020, Forsage, a doubtful and opaque network that promotes itself as a community investment platform, appeared first on the Ethereum blockchain, then on those of Tron and Binance. Forsage claims to be a platform for community investments. Its operation made full use of the Covid crisis, during which millions of idle individuals confined to their homes sought to make money by dreaming of earning a fortune on cryptocurrencies. This presented an opportunity for its operation to profit.
The collecting begins to pick up steam in June of 2020, with daily totals between 10 and 20 million dollars. Because of how successful the program is, it is causing congestion on the Ethereum network. Because of this "overconsumption," Forsage members are required to pay transaction fees that are four times more than those of other users. They do this by recruiting and sponsoring new members, and in exchange, they get compensation in cryptocurrencies like as ether, tron, or BUSD, which is Binance's native cryptocurrency. This is made possible by the expansion of the base of the pyramid. The cheap beginning bet (a minimum of 0.05 ether) and the growth in the price of ether (plus 450 percent in 2020) attract a large number of victims.
The “Crypto Crusaders”
The countries of Nigeria, the Philippines, India, and Indonesia, as well as the United States, have the social networks with the most active communities. The organization might rely on a group known as the "crypto crusaders" to promote its investments on social media platforms such as YouTube, Facebook, Instagram, and Telegram. According to a marketing discourse that is well-established, the fact that this group had as many as 45,000 active members is evidence of their quick growth and enrichment. Goals ? You need to get as many new members as you can, and you need to get them to invest a lot of money.
But in 2021, in response to complaints from dissatisfied consumers and warnings from authorities, the company's sales started a precipitous decline, which has since been followed by a stagnation that has continued into this year. Disagreements on the future direction of the firm led to the breakup of the original founding group of three in March. Two of them were responsible for initiating the investment program for Meta Force. Their presence on YouTube guarantees that it has nothing to do with Forsage, who suffered from a deficiency that prevented him from maturing and growing to his full potential. They claim that the only thing that Forsage did was "move money between users." The pyramid is reimagined as a far more refined and visually appealing structure known as the Meta Force. The eleven individuals accused by the SEC of wrongdoing declined to testify, claiming the Fifth Amendment of the United States Constitution, which states that "no one shall be forced to testify against himself."
Forsage claims on its website that it had more than 2 million members in 2022 and that these members together earned $1.34 billion, or $644 for each member. There were approximately fifty successful millionaires and wonderful tales among them. A teenage girl might have earned enough money to construct a home in only six weeks of working on the street. Forsage said that they did not "make a profit." The Securities and Exchange Commission has a quite different viewpoint. She said that some of the funds that were gathered in the form of cryptocurrencies like ether were misappropriated and ended up in the wallets of the individuals who were believed to be behind this alleged worldwide fraud.
The pyramid amassed 739,000 ethers over the course of two years and four months of work. The most lucrative year was the first one, which was in 2020 and made $267 million. When it was launched, it quickly became Ethereum's second most popular application. According to the findings of a research, just 12 percent of the one million users at the time generated any money, which averaged out to around 2.1 ethers per person despite the existence of significant disparity. Among them, five people—the company's founders and other prominent members—took 14,325 ethers, which is equivalent to 5.4 percent of the company's total revenues (10.5 million dollars). One thousand participants each took home one-half of the proceeds. These individuals are those who have brought in the most number of new consumers for the pyramid.