Cryptocurrency fraud scheme busted by US securities agency

US authorities have busted a huge cryptocurrency pyramid scheme, charging 11 people for their role in defrauding retail investors for more than $300m worldwide.

The US Securities and Exchange Commission (SEC) announced the charges Monday, which relate to a Ponzi scheme called Forsage that had operated for more than two years. The agency charged the alleged founders of the pyramid scheme as well as several promoters.

Forsage also allegedly used assets from new investors to pay earlier investors in a typical Ponzi structure, the SEC complaint added.

The four Forsage founders were last known to be living in Russia, the Republic of Georgia and Indonesia, the SEC said in its statement.

Without admitting or denying the allegations, two of the defendants agreed to settle the charges and one of them agreed to pay penalties, the SEC said.

The 11 charged individuals could not immediately be reached for comment.