Forsage: a pyramid scheme running on smart contracts
Forsage claimed to run on "decentralised" smart contracts. In 2022 the US SEC charged it as a pyramid and Ponzi scheme. It was promoted worldwide, including in South Asia.
Last reviewed: 15 October 2026
- Period
- 2020 – 2022
- Losses
- More than $300 million raised worldwide, according to the US SEC.
Red flags
- "It runs on smart contracts, so it is safe and transparent"
- New members as the only source of income
- Earlier warnings from regulators in other countries
How it worked
Forsage ran through smart contracts on Ethereum and other blockchains and called itself a "decentralised matrix project". The SEC alleges members earned mainly by recruiting new members, and that new members' money paid earlier ones.
Legal consequences
In August 2022 the SEC sued its four founders and several promoters. Regulators in the Philippines and the US state of Montana had already issued cease-and-desist orders against it.
The lesson
Running on smart contracts or a blockchain does not make a project legitimate or profitable. The code just splits money according to its rules; if the rules are a pyramid, the code runs a pyramid.
Sources
This page is based on allegations and reports published by the sources cited; allegations are unproven until a court rules. Tell us if anything is inaccurate.