A Ukrainian national indicted for her alleged role in a $340 million global cryptocurrency fraud scheme has appeared in court in Oregon after being extradited to the United States from Thailand.
Olena Oblamska, 42, also known as Lola Ferrari, is accused of being one of the four founders of claimed cryptocurrency investment platform Forsage, which prosecutors say was actually a Ponzi and pyramid scheme. Oblamska faces charges of conspiracy to commit wire fraud.
Thailand’s Cyber Crime Investigation Bureau arrested Oblamska at a condominium in central Phuket in February, but did not name her at the time. She was extradited to the U.S. in early May.
Oblamska made her initial appearance in federal court in Oregon before a U.S. magistrate judge on May 12. She was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin in July.
Prosecutors say she was the self-proclaimed “goddess” of a scheme that falsely promoted Forsage on the internet as a legitimate, low-risk and lucrative investment, before stealing about $340 million from victim-investors.
Dubai-based Russian Vladimir Okhotnikov allegedly directed, managed, and controlled Forsage’s operations. Okhotnikov, who also co-produced, co-wrote and co-starred in Kevin Spacey’s new film, “Holiguards Saga — The Portal of Force”, fled to the United Arab Emirates, while facing criminal charges from the U.S. and Georgian authorities.
ICIJ examined Okhotnikov’s business dealings as part of The Coin Laundry, an investigation into how the crypto industry has profited from illicit financial flows while leaving most of those harmed in the process without recourse.
According to court documents, Oblamska, Okhotnikov and their co-defendants launched Forsage in 2019 and promoted it worldwide through social media and online marketing.
Investigators allege the platform required participants to purchase positions in the program using cryptocurrency, with funds from new investors automatically distributed to earlier participants.
Authorities say the structure mirrored a classic Ponzi or pyramid scheme, in which returns depend primarily on recruiting new investors rather than legitimate business activity.
Phones, computers seized
U.S. Attorney Scott E. Bradford for the District of Oregon announced Oblamska’s extradition in May. The Department of Justice, FBI and Thai authorities had for weeks prior declined to confirm Oblamska’s arrest for ICIJ.
If convicted, Oblamska faces a maximum sentence of 20 years in federal prison and a fine of $250,000. Okhotnikov and two others, Mikhail Sergeev and Sergey Maslakov, are also facing prison time if convicted.
Cyber crime officers and local police arrested Oblamska after executing a court-issued search warrant at a condo in Chalong, a subdistrict of Phuket, Thailand.
The search also led to the seizure of mobile phones, computer equipment, a laptop, an iPad and documents.
Oblamska had previously been thought to be on the run in Bali, Indonesia, and previously said to be Russian.
Prosecutors said blockchain analysis showed most participants lost money in the Forsage program. According to investigators, more than 80% of investors received less cryptocurrency than they paid into the system, and more than half received no payout at all.
Authorities also allege that the founders continued promoting the platform even after regulators in several countries issued warnings or began investigating the project.
In a related action, the U.S. Securities and Exchange Commission filed civil charges against individuals associated with Forsage.
Okhotnikov and Oblamska had previously claimed there were 50 people who “became millionaires” because of Forsage. Authorities dispute that claim, and say blockchain analysis revealed that only one user ID, controlled by the defendants, received more than a million dollars’ worth of crypto from the scheme.
The Department of Justice is encouraging all investor victims of the Forsage scheme to come forward.