Forsage relied on smart contracts on Ethereum, Binance Smart Chain and Tron that were “consistent with a Ponzi scheme,” the statement said. “As soon as an investor invested in Forsage by purchasing a ‘slot’ in a Forsage smart contract, the smart contract automatically diverted the investor’s funds to other Forsage investors, such that earlier investors were paid with funds from later investors.”
Source: https://www.coindesk.com/policy/2023/02/22/forsage-founders-indicted-for-340m-ponzi-scheme-masquerading-as-defi-platform/?utm_medium=referral&utm_source=rss&utm_campaign=headlines