The Attorney General of New York is suing two crypto firms for their alleged role in a $1 billion pyramid scheme. In a new press release, New York AG Letitia James announces a lawsuit against crypto exchange NovaTech and crypto mining company AWS Mining for allegedly defrauding hundreds of thousands of customers, 11,000 of which […]
The post New York Attorney General Sues Two Crypto Companies for Alleged $1,000,000,000 Pyramid Scheme appeared first on The Daily Hodl.
Telegram’s integration of the TON blockchain and its native Toncoin token has become a honeypot for scammers promoting a referral pyramid scheme.
Telegram’s public support for The Open Network (TON) blockchain and its intention to incorporate its native Toncoin token have led to scammers targeting unsuspecting tokenholders to exploit them.
Information shared with Cointelegraph from cybersecurity firm Kaspersky outlines a cryptocurrency scam that has been attempting to steal Toncoin (TON) from Telegram users worldwide.
According to experts at Kaspersky, the scam has been operating since at least November 2023 as interest and investments in TON surged. Scammers have been promoting an elaborate referral scheme that ultimately aims to steal TON tokens from users.
A top-level OneCoin executive is pleading guilty to accusations arising from her alleged participation in the multi-level marketing (MLM) scam that swindled over $4 billion from victims worldwide. In a statement, the U.S. Department of Justice (DOJ) says that Bulgarian citizen and OneCoin head of legal compliance Irina Dilkinska has pleaded guilty to one count […]
The post Compliance Official Pleads Guilty to Money Laundering Charges Over Role in Infamous OneCoin Crypto Scheme appeared first on The Daily Hodl.
The former pro soccer player said in a congressional hearing that his likeness was improperly used to market an allegedly fraudulent crypto scheme.
Retired pro soccer star Ronaldinho Gaúcho has testified at a congressional hearing in Brazil, denying his involvement in an alleged $61 million crypto pyramid scheme that bore his name.
On Aug. 31 Ronaldinho appeared before a parliamentary committee inquiry where he refuted any role in the scheme called "18kRonaldinho" that promised 2% daily returns on crypto. A lawsuit was filed against the firm seeking $61 million in damages.
Ronaldinho claimed he was never partnered with th company and it used his name and image without his authorization, arguing he was also a victim of the purported scheme.
During the hearing, images were shown of 18kRonaldinho’s marketing that depicted Ronaldinho.
He said the pictures were taken as part of a contract he signed in July 2019 with a subsidiary of the company that sells watches but that contract was terminated later that year in October and was never executed.
The inquiry’s president Aureo Ribeiro asked Ronaldinho if he intended to reimburse those who invested in the company to which Ronaldinho said he would remain silent.
He also did not answer when asked about the $61 million lawsuit.
Related: Breaking victim ‘trust’ in scammer is key to beat crypto scams, exchanges say
Ronaldinho had failed to appear before two previous hearings related to the inquiry, most recently on Aug. 24 in which he blamed weather conditions for not being able to attend.
The latest Aug. 31 hearing was his last chance to appear before Congress — if he didn’t he faced possible fines or arrest in which authorities would’ve forcibly taken him to appear at the hearing.
The inquiry was launched in June to investigate purported crypto pyramid schemes and is being carried out by Brazil’s lower house, the Chamber of Deputies.
It’s investigating a total of 11 companies alleged by the country’s Securities and Exchange Commission to have falsely promised high returns using crypto.
Magazine: Tornado Cash 2.0 — The race to build safe and legal coin mixers
Ukrainian law enforcement has exposed a financial pyramid originating from Russia suspected of making millions of U.S. dollars. The scam convinced victims to send fiat money and cryptocurrency by promising profitable investments in big companies around the world. Large Crypto Pyramid Scheme With Russian Roots Busted in Ukraine Officers from the Security Service of Ukraine […]
Authorities in the U.S. have announced charges against a former Onecoin executive for her alleged role in the notorious crypto pyramid scheme. Bulgarian national Irina Dilkinska, who was extradited on Monday, may face up to four decades in prison if found guilty on counts of fraud and money laundering. Bulgarian Woman Handed Over to US […]
The Egyptian police are reported to have recently arrested 29 individuals associated with the Hoggpool cryptocurrency mining app scam. In addition to seizing 95 mobile phones and 3,367 SIM cards, the police said domestic and foreign currency valued at $194,000 was recovered during the arrests. According to a lawyer representing over 1,000 victims, as many […]
Four Russians have been charged in the U.S. with operating a crypto pyramid and Ponzi scheme that defrauded investors of millions of dollars. If convicted, they would face a maximum penalty of 20 years in prison for their roles in the purportedly decentralized finance (defi) platform Forsage. Forsage Founders Charged With Running Cryptocurrency Pyramid A […]
According to the Department of Justice, Forsage employed smart contracts which were coded in ways consistent with a Ponzi scheme.
The founders behind the alleged $340 million “global Ponzi” scheme Forsage have been indicted by a federal grand jury in the District of Oregon.
The four Russian founders — Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev, and Sergey Maslakov — have been formally accused of having key roles in the scheme which raised approximately $340 million from victim-investors, according to a Feb. 22 Department of Justice (DOJ) statement.
“Today’s indictment is the result of a rigorous investigation that spent months piecing together the systematic theft of hundreds of millions of dollars,” said U.S. Attorney Natalie Wight for the District of Oregon, adding:
“Bringing charges against foreign actors who used new technology to commit fraud in an emerging financial market is a complicated endeavor only possible with the full and complete coordination of multiple law enforcement agencies.”
Forsage had touted itself as a low-risk decentralized finance (DeFi) platform built on the Ethereum (ETH) blockchain which purportedly allowed users to generate long-term passive income, Blockchain analytics however reportedly revealed that 80% of Forsage “investors” have received less back than they had put in.
According to the DOJ, analysis of the smart contracts revealed that funds raised as new investors purchased “slots” in Forsage’s smart contracts were diverted to older investors, as is consistent with a "Ponzi scheme."
Forsage still has an active Twitter account, which posted a thread on Feb. 22 claiming that community members who participate in “The Ambassador Program” would be able to earn monthly rewards by completing certain tasks.
2/3
— FORSAGE (@forsageofficial) February 22, 2023
Pre-registration will open soon, so don't hesitate to be among the first!
The Ambassador Program is an opportunity not only to earn rewards, but also to attract new members to the team, get to know the products better and broaden your horizons in the world of Web3.
On Aug. 1 2022, the Securities and Exchange Commission (SEC) had charged the four founders and seven promoters with fraud and selling unregistered securities, with acting chief of the SEC’s Crypto Assets and Cyber Unit, Carolyn Welshhans, noting at the time:
“Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains.”
The Philippines Securities and Exchange Commission had also flagged Forsage as a likely Ponzi back in 2020, but a month later the platform was still the second-most popular DApp on the Ethereum blockchain.
Related: Crypto, forex platform CEO pleads guilty to $248M fraud scheme
While a charge refers to the instance when a prosecutor brings criminal charges and accuses an individual or group of an offense, an indictment is filed by a grand jury if prosecutors are able to convince a majority of them that a formal accusation is warranted following an investigation.
Grand juries are common in federal and serious state felony offenses.
More than $17 million in restitution will be distributed among investors in the pyramid scheme Bitconnect under a court order in the United States. The notorious crypto investment scheme defrauded thousands of people around the world. Bitconnect Investors From Dozens of Countries to Be Paid Back Millions of US Dollars A total of over $17 […]