Bitcoin
$ 42,539
Ethereum
$ 2,888.2
Litecoin
$ 151.16
okex ads

Montana regulator issues cease and desist order against Forsage scam

The Montana state securities regulator has issued a cease and desist order against an alleged digital currency pyramid scheme. Commissioner of Securities and Insurance (CSI), Montana State Auditor Troy Downing said the scam has been operating from the Philippines but targeting U.S. residents.

The state regulator has received multiple complaints from Montana residents regarding Forsage, Downing said.

“Forsage does not try to hide the fact they are a pyramid scheme. Members must pay with Ethereum cryptocurrency to the person above them to buy a position on the pyramid. The currency used to buy the position goes directly to the participant above,” the commissioner said.

Headed by Lado Okhotnikov, the Philippines-based Forsage allegedly targeted unsuspecting victims who were lured with promises of zero-risk investment, authorities said. As Downing pointed out, “Every investment carries risk. A claim to the contrary is a significant red flag to walk away and alert our agency.”

The commissioner urged all residents in the state to stay away from the scam. Downing added that he had directed his agency to commit all available resources to hold Okhotnikov and his co-conspirators accountable. A fine not exceeding $5,000 will be imposed for each identifiable violation, as well as a fine not exceeding $20,000 per violation of a vulnerable person as well as restitution for financial losses. Okhotnikov has 24 days to contest the Commissioner’s proposed action.

The Montana regulator joins the Philippines Securities and Exchange Commission (SEC) which issued a cease and desist order against the scam in October. As CoinGeek reported at the time, the SEC also branded Forsage a pyramid scheme in which new investors paid off their predecessors. However, despite the SEC order, Forsage continued to lure in thousands. At one point, it was the decentralized application that had the most users and volume on the Ethereum blockchain.

Source: coingeek.com

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Ark Invest’s Cathie Wood Doubles Down on $500K Bitcoin Prediction, Discusses Crypto Regulation
September 25, 2021By
Amasa (AMAS) Partners TrustPad and ChainBoost for IDO Launch
September 25, 2021By
China’s shock crackdown on cryptocurrencies rocks markets
September 25, 2021By

Advertisement

Video Posts

In
Impact Of Technology On 4.0
July 6, 20210
In
Importance Of Cryptography
July 3, 20210

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,539 0.08 % 1.08 % 9.93 %
Ethereum2,888.2 0.40 % 0.22 % 15.36 %
Cardano2.410 0.75 % 8.84 % 2.59 %
Tether1.000 0.29 % 0.24 % 0.40 %
Binance Coin349.69 0.28 % 0.10 % 13.85 %
XRP0.9382 0.40 % 1.66 % 12.13 %
Solana137.47 0.20 % 0.32 % 6.86 %
Polkadot30.06 0.27 % 0.69 % 9.16 %
USD Coin1.000 0.06 % 0.07 % 0.20 %
Dogecoin0.2069 0.15 % 0.33 % 14.11 %

You have not selected any currencies to display