The alleged Ethereum-based pyramid scheme Forsage continues to attract prospective investors despite warnings from regulators. 

According to a report by, Forsage has managed to thrive in the booming industry of Ethereum’s decentralized finance marketplace, despite warnings from regulators that the project constitutes a pyramid scheme. 

First launched in February 2020, Philippines-based Forsage has managed to generate more than $2.8 million ETH in volume over the past week. The protocol functions as a matrix cycler program that claims to offer users the ability to make “passive income” by signing up more participants.

According to the project’s website, clients can sign up with a one-time investment of 0.05 ETH and generate income by referring others to join. Forsage refers to the operation as a “simple relationship” that is based upon “the more partners, the more of the money collected.”

Potential investors are required to net three referrals in order to progress past the first round of the “matrix cycle.”

The project has drawn the attention of the Phillippines Securities and Exchange Commission, which published a warning about Forsgae. 

The release reads, 

Aside from lacking the necessary licenses, Forsage’s compensation plan resembles a Ponzi scheme, where investors are paid using the contribution of new investors.

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