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Ronaldinho denies part in alleged $61M crypto scam at congressional hearing

September 1, 2023 Coin Telegraph

Ronaldinho denies part in alleged M crypto scam at congressional hearing

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.

*The inquiry showed an image of Ronaldinho with the text “Your money yielding up to 2% a day” (translated). Source: YouTube*

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.

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.

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Russian Founders of Defi Platform Forsage Indicted in $340 Million Crypto Ponzi Scheme

February 23, 2023 Bitcoin.com

Forsage founders indicted over $340M DeFi ‘Ponzi scheme’

February 23, 2023 Coin Telegraph

Forsage founders indicted over 0M DeFi ‘Ponzi scheme’

Carolyn Welshhans

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

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.
— FORSAGE (@forsageofficial) February 22, 2023

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.

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.

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$4B OneCoin scam co-founder pleads guilty, faces 60 years jail

December 19, 2022 Coin Telegraph

Coin Telegraph

The co-founder of the fraudulent scheme is set to be sentenced in April 2023 on charges relating to wire fraud and money laundering.

Karl Sebastian Greenwood, the co-founder of the multi-billion dollar fraudulent cryptocurrency scheme OneCoin has pleaded guilty to multiple charges brought forward by the United States Department of Justice (DOJ) and faces a maximum of 60 years in prison.

The DOJ announced on Dec. 16 that Greenwood submitted a guilty plea in a Manhattan federal court to charges of wire fraud, wire fraud conspiracy and money laundering conspiracy with each charge carrying a maximum potential sentence of 20 years in jail.

U.S. Attorney Damian Williams said Greenwood operated “one of the largest international fraud schemes ever perpetrated” and claimed he touted OneCoin as a “Bitcoin killer” when in reality the tokens were “entirely worthless.”

OneCoin was a Bulgarian company founded by Greenwood alongside “Cryptoqueen” Ruja Ignatova that marketed a cryptocurrency by the same name. Emails obtained by the DOJ between the two before its founding in 2014 allege the pair called it a “trashy coin.”

*Greenwood on stage in Jun. 2016 at OneCoin’s “COIN RUSH” event in London. Image:* *YouTube*

Outwardly it claimed to be a multi-level marketing firm with members gaining commissions for selling cryptocurrency packages apparently containing OneCoin and the ability to mine more. OneCoin could only be exchanged for fiat currency on the private Xcoinx exchange.

In reality, it was both a pyramid and a Ponzi scheme as investors could recruit others into the scheme without an actual product and later investors were paid with the money from earlier investors.

According to the DOJ Greenwood was earning around $21.2 million (€20 million) per month in his role as the “global master distributor” of the fraudulent crypto firm. Over $4 billion is believed to have been swindled by OneCoin from the three million people who invested in the packages.

Ignatova was placed on the Federal Bureau of Investigation’s top ten most wanted list in June for her role in the scheme. She remains at large and was last known to have traveled to Athens, Greece in Oct. 2017.

Williams said Greenwood’s plea “sends a clear message” the DOJ is “coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are.”

Greenwood is slated to be sentenced before District Judge Edgardo Ramos on Apr. 5, 2023.

Authorities elsewhere have charged those involved with OneCoin and Ignatova, with three associates facing charges in Germany over fraud and money laundering.

Pyramid Scheme