Forsage Co-Founder Extradited to US Over Alleged US$340M Crypto Ponzi Scheme

A co-founder of the cryptocurrency platform Forsage has been extradited from Thailand to the United States, where prosecutors accuse her of participating in an alleged US$340 million (AU$476 million) crypto Ponzi scheme. Ukrainian national Olena Oblamska appeared in federal court in Oregon after arriving in US custody earlier this month.

Oblamska, also known online as “Lola Ferrari”, entered a not guilty plea to conspiracy to commit wire fraud during her arraignment on 11 May. Court records show she has been detained ahead of a four-day jury trial scheduled for July.

Federal prosecutors allege Forsage presented itself as a decentralised investment platform built on Ethereum, BNB Smart Chain and Tron, while actually operating through a structure that rewarded earlier participants using money from newer investors. 

Authorities claim users bought into “slot” systems that automatically channelled funds upwards through smart contracts. Investigators further allege the platform’s founders secretly redirected portions of investor money into cryptocurrency wallets they controlled through Forsage’s “xGold” mechanism. 

Prosecutors cited blockchain analysis indicating that more than 80% of participants in the Ethereum-based programme recovered less cryptocurrency than they deposited, while over half received no returns at all.

Related: Ethereum Pushes Clear Signing to Combat Costly Crypto Scams

Investigators Close In on Forsage Founders 

Thai authorities arrested Oblamska during a raid on a condominium in Phuket in February. US investigators say she is the first among the four founders charged in the case to be brought into American custody.

The US Securities and Exchange Commission previously filed civil fraud charges against individuals linked to Forsage in 2022, before criminal indictments followed in 2023. If convicted, Oblamska faces up to 20 years in prison and a US$250,000 (AU$350,000) fine.
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