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Forsage Co-Founder Extradited to US Over Alleged US$340M Crypto Ponzi Scheme
- Ukrainian national Olena Oblamska has appeared in a US court after being extradited from Thailand over allegations tied to the Forsage crypto platform.
- Prosecutors claim Forsage operated as a blockchain-based Ponzi structure that redirected investor funds to earlier participants and founder-controlled wallets.
- Authorities say most users lost money through the scheme, while US regulators and prosecutors continue pursuing the remaining founders.
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.
Related: Bitcoin ETF Outflows Surge as BTC Struggles to Hold $80K
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
