Forsage Co-Founder Pleads Not Guilty to Fraud Charges in U.S.

Forsage co-founder Olena Oblamska has pleaded not guilty to charges of conspiracy to commit wire fraud after being extradited from Thailand to the United States. According to Odaily, Forsage, launched in January 2020, was marketed as a smart contract-based decentralized application (DApp) investment platform to retail investors globally. The U.S. Department of Justice has accused the platform of using smart contracts on Ethereum, Tron, and BNB Chain to automatically redirect funds from new participants to earlier investors, classifying it as a Ponzi and pyramid scheme. Blockchain analysis indicates that over 80% of Forsage investors received less cryptocurrency than they deposited, with more than 50% receiving no returns at all. The scheme allegedly defrauded victims in the United States, Europe, Asia, and Latin America of approximately $340 million. The U.S. Securities and Exchange Commission filed a civil lawsuit against those involved in August 2022.