Promoter in $8.4B Forcount Cryptocurrency Pyramid Scheme Pleads Guilty

NEW YORK – A U.S.-based promoter for the massive Forcount cryptocurrency pyramid scheme has pleaded guilty to conspiracy charges, according to the U.S. Attorney's Office for the Southern District of New York (SDNY). The plea marks a significant development in the prosecution of an alleged $8.4 billion global fraud that victimized investors worldwide.

Juan Antonio Tacoronte, a Florida resident described by prosecutors as one of the scheme's most successful U.S. promoters, pleaded guilty on November 15, 2023, to one count of conspiracy to commit wire fraud. The charge carries a maximum potential sentence of five years in prison.

According to the Department of Justice (DOJ), Tacoronte and his co-conspirators operated what amounted to a classic Ponzi scheme masked as a modern crypto investment opportunity. The case highlights the ongoing commitment of federal agencies to police fraud in the digital asset space.

The Forcount Scheme Explained

The indictment, originally unsealed in December 2022, alleges that Francisley da Silva, a Brazilian national, created and ran the Forcount scheme. From roughly 2017 to 2021, Forcount, later rebranded as Weltsys, solicited hundreds of thousands of investors by promising high, often guaranteed, returns on their investments.

Promoters like Tacoronte allegedly enticed victims by claiming their money would be invested in a profitable cryptocurrency trading and mining operation. They hosted lavish expos and used social media to create an image of wealth and success, luring investors with promises of financial freedom.

In reality, prosecutors state that Forcount had little to no actual crypto trading or mining activity. Instead, it operated as a pyramid scheme. New investor money was used to pay purported "returns" to earlier investors, while a significant portion of the funds was diverted to the promoters and founder. When the flow of new investor capital was no longer sufficient to support the payouts, the scheme collapsed, and victims were unable to withdraw their funds.

The Charges and Co-defendants

Tacoronte was charged alongside the scheme's alleged creator, Francisley da Silva, and another high-level promoter, Antonia de la Rosa. While Tacoronte has now pleaded guilty, da Silva and de la Rosa were charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering in the original indictment.

Prosecutors allege that da Silva, the scheme's mastermind, fled Brazil for the United States, where he continued to promote the scheme before being arrested. The indictment outlines how he and his co-conspirators allegedly laundered millions in victim funds to purchase luxury goods, real estate, and other assets.

In his statement on the original charges, U.S. Attorney Damian Williams said, "For years, Francisley da Silva and his co-conspirators allegedly duped investors with promises of riches, but in reality, they were operating a massive cryptocurrency pyramid scheme that gobbled up a staggering $8.4 billion in victim funds." Williams noted that da Silva used the proceeds to fund a "lavish lifestyle" while investors were left with nothing.

What This Means for Crypto Enforcement

The guilty plea by a key promoter underscores the DOJ's focus on dismantling complex financial fraud networks, regardless of whether they operate using traditional currency or digital assets. The Forcount case serves as a stark reminder that promises of high, guaranteed returns in the volatile crypto market are a significant red flag for fraudulent investment schemes.

Authorities continue to warn the public about Ponzi and pyramid schemes that leverage the complexity and hype surrounding cryptocurrency to appear legitimate. The prosecution of individuals at all levels of the conspiracy—from founders to promoters—signals an effort to hold all participants accountable.

As U.S. Attorney Damian Williams stated, "Whether you're a founder, a promoter, or another type of co-conspirator, the Southern District of New York is watching, and we're committed to bringing you to justice." The case against the remaining defendants in the Forcount cryptocurrency pyramid scheme will continue to be a focal point for regulators and a cautionary tale for investors globally.