Fraud and Scams, Hot News

Forsage Tagged As “Ponzi Scam”; Operates Still in the Philippines Despite Authorities Memo

In a recent tell of stories for the crypto world, an increasing number of people invested in pyramid schemes for ether – the Forsage.

This has been one of the trends along with decentralized finance (DEFI) and initial coin offerings (ICOs) that have been recently being leverage.

As well, with the recent dissolution of Omnicoin Master and the current charges against Plustoken and Wotoken members, there is one source of income that has been tried by many, especially in most Asia regions.

This is known as Forsage, which has made a wave in their deposits since it launched in February 2020.

According to the report, this project is considered high risk, yet in the recent roundups, it has still managed to see $2.8 million worth of ethereum EITH volume during the last seven days.

Simplest terms of how it works, Forsage is a lure of “by just singing up” as you add more people. There is a matrix cycler program that privileges to offer users the ability to create ‘passive income.’

In its website, it states that anyone can invest 0.05 ETH ($18.34) in joining, and the more people they sign up, the more money they can purportedly make. All this on the foundation of the relationship.

Referrals are a vital way to complete the first round of the matrix cycle. Three investors must be keyed in the system to increase the ladder. “The more partners, the more of the money collected,” the Forsage FAQ notes.

To convince it, client, the page also cites a success story of “ID 8679” who is allegedly making over $700k, and soon will be a “millionaire.”

As in the case in the Philippines based matrix cycler, Forsage is tagged as a Ponzi scam that could end in a matter of no time.

A few experts in the cryptocurrency worlds have been speculating on the Forsage project and how this became such a hit to everyone.

The founding partner of the Primitive Ventures, Dovey Wan, recently deliberated the Forsage pyramid scheme on Twitter. Wan said a lot of the Ethereum network’s liveliness stems from Forsage.

“The ETH price floor is not from a few food coin scams or a potential defi vault explosion, sadly is from the liveness of Forsage, the ongoing ETH version Plustoken,” Wan told. “I just checked its activity which is still thriving, feeling comfy,” she added.

Last July 1, 2020, a warning has been shared by The Philippines Securities and Exchange Commission (SEC) to Forsage.

There is also a builds from Edward Morra, who responded to Wan’s tweet and also shared a graph showing the amount of money accumulated by the company since the beginning, saying that the deposits are slowing down

“It’s pretty scary considering the amount of crypto sent is decreasing for some sustained time now,” Morra added. “Meaning this Ponzi will soon stop functioning like all Ponzis.”

But despite this notice, the Forsage kept its business.

“Forsage, which is headed by Lado Okhotnikov, is not duly registered with the SEC and lacks the necessary license to solicit, accept or take investments from the public or issue investment contracts and other forms of securities,” the warning notes.

The SEC letter also included this verbatim information:

Active income generated from the compensation plans depends on the number of referrals and membership fees gathered, while passive income is acquired through spillovers. Aside from lacking the necessary licenses, Forsage’s compensation plan resembles a Ponzi scheme, where investors are paid using new investors’ contributions, according to the SEC.

Disguised as a “crowdfunding,” Fosage offers an ethereum-based gifting pyramid scheme.

In a social media post, someone posted in the name of Badmlm “Pay ethereum to join for the ability to refer other suckers, to get paid there so they can do the same,” the review details.

“People think it’s all legit and some kind of revolutionary way to earn Ethereum daily, because it’s handled with smart contracts on the Ethereum blockchain. Don’t be fooled by all the smoke and mirrors, it’s still an illegal pyramid scheme,” Badmlm noted.

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