US State Issues Cease and Desist Order against DApp Forsage
- “Forsage does not try to hide the fact they are a pyramid scheme,” Commissionaire Downing said.
The US state of Montana has issued a cease and desist order against Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term-based investment scheme Forsage, calling it a Pyramid scheme.
In the order issued last week, the state regulator said that it has received multiple complaints from the state residents about the scheme, which is violating the Montana Securities Act.
Forsage, which runs as a decentralized application (Dapp Dapp A dapp, or decentralized application, is a computer application that runs on a distributed network. Dapps are most commonly associated with the blockchain networks that support them, such as Ethereum.Because dapps are decentralized, they do not exist under the purview of a centralized custodian or authority. The original Ethereum white paper effectively splits dapps into three types. This includes apps that manage money, apps where money is involved (but also requires another piece), and apps d A dapp, or decentralized application, is a computer application that runs on a distributed network. Dapps are most commonly associated with the blockchain networks that support them, such as Ethereum.Because dapps are decentralized, they do not exist under the purview of a centralized custodian or authority. The original Ethereum white paper effectively splits dapps into three types. This includes apps that manage money, apps where money is involved (but also requires another piece), and apps d Read this Term), was once the highest gas consumer on Ethereum. It is headed by Lado Okhotnikov.
The investment model of the scheme is questionable as it does not sell any product and the only way to make money is by recruiting other people. Every member needs to recruit three more people to receive the payout. Money from the first two recruits goes directly to the recruiter, while deposits from the third go two steps up in the pyramid.
“Forsage does not try to hide the fact they are a pyramid scheme,” Montana State Auditor, Troy Downing explained. “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.”
Not Authorized to Operate in the US
The project is based in the Philippines and is not licensed to operate in the United States. Though the scheme highlights having ‘zero risk’, the website clearly projects its pyramid structure.
Additionally, Forsage was flagged earlier in its home country for being a pyramid scheme and issued a warning to the local investors.
“Every investment carries risk,” Downing added. “A claim to the contrary is a significant red flag to walk away and alert our agency. Forsage appears to be a scam. Our agency is asking Montanans to stay away and urge their friends and family to do the same.”
The US state of Montana has issued a cease and desist order against Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term-based investment scheme Forsage, calling it a Pyramid scheme.
In the order issued last week, the state regulator said that it has received multiple complaints from the state residents about the scheme, which is violating the Montana Securities Act.
Forsage, which runs as a decentralized application (Dapp Dapp A dapp, or decentralized application, is a computer application that runs on a distributed network. Dapps are most commonly associated with the blockchain networks that support them, such as Ethereum.Because dapps are decentralized, they do not exist under the purview of a centralized custodian or authority. The original Ethereum white paper effectively splits dapps into three types. This includes apps that manage money, apps where money is involved (but also requires another piece), and apps d A dapp, or decentralized application, is a computer application that runs on a distributed network. Dapps are most commonly associated with the blockchain networks that support them, such as Ethereum.Because dapps are decentralized, they do not exist under the purview of a centralized custodian or authority. The original Ethereum white paper effectively splits dapps into three types. This includes apps that manage money, apps where money is involved (but also requires another piece), and apps d Read this Term), was once the highest gas consumer on Ethereum. It is headed by Lado Okhotnikov.
The investment model of the scheme is questionable as it does not sell any product and the only way to make money is by recruiting other people. Every member needs to recruit three more people to receive the payout. Money from the first two recruits goes directly to the recruiter, while deposits from the third go two steps up in the pyramid.
“Forsage does not try to hide the fact they are a pyramid scheme,” Montana State Auditor, Troy Downing explained. “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.”
Not Authorized to Operate in the US
The project is based in the Philippines and is not licensed to operate in the United States. Though the scheme highlights having ‘zero risk’, the website clearly projects its pyramid structure.
Additionally, Forsage was flagged earlier in its home country for being a pyramid scheme and issued a warning to the local investors.
“Every investment carries risk,” Downing added. “A claim to the contrary is a significant red flag to walk away and alert our agency. Forsage appears to be a scam. Our agency is asking Montanans to stay away and urge their friends and family to do the same.”