The US Securities and Exchange Commission (SEC) said on Monday it had charged 11 people for their roles in creating and promoting a fraudulent crypto pyramid and Ponzi scheme that raised more than $300 million from retail investors worldwide, including in the US.
Those charged include the four founders of the scheme called Forsage who were last known to be living in Russia, the Republic of Georgia and Indonesia, the SEC said in a statement.
The SEC complaint states that the scheme's website, launched in January 2020, allowed millions of retail investors to enter into transactions via smart contracts.
The site allegedly allowed investors to earn profits by recruiting others, operating as a pyramid scheme for more than two years, the SEC said.
Forsage also reportedly used assets from new investors to pay earlier investors in a typical Ponzi structure, the SEC complaint added.
“Forsage is a fraudulent pyramid scheme launched on a massive scale and aggressively marketed to investors,” said Carolyn Welshhans, acting chief of the SEC's Crypto Assets and Cyber unit.
“Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains.”
Without admitting or denying the allegations, two of the accused agreed to settle the charges and one of them agreed to pay penalties, the SEC said.
Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
UAE currency: the story behind the money in your pockets
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
