Forsage Review (2026): Why 'Smart Contracts' Didn't Make It Legit

Forsage in One Minute

Forsage launched in January 2020 as a "decentralized" matrix program that ran on smart contracts on the Ethereum, Tron and Binance blockchains. In August 2022 the SEC charged 11 people, including its four founders, alleging it was a pyramid and Ponzi scheme that raised more than $300 million from millions of retail investors.

How It Was Pitched

Forsage said its smart contracts were automatic and transparent, so nobody could steal funds. Members bought "slots" and earned when others they recruited bought in. The code moved money from new participants to earlier ones.

The Criminal Case

In February 2023 a federal grand jury in Oregon indicted the four Forsage founders, Vladimir Okhotnikov, Olena Oblamska (known as "Lola Ferrari"), Mikhail Sergeev and Sergey Maslakov, for conspiracy to commit wire fraud. Prosecutors put the total taken from investors at about $340 million. All four are Russian nationals, and the indictment is an allegation until proven in court.

How a Matrix Program Pays

In Forsage, members bought slots at rising price levels. Payments from each new slot flowed to members above them in the matrix, and when a level filled, the cycle restarted. Members who joined early and recruited heavily could collect from those below; latecomers had fewer people beneath them. That structure guarantees most participants lose once recruiting slows.

What the SEC Alleges

The SEC says investors profited mainly by recruiting others and that new investors' assets paid earlier ones, the definition of a pyramid and Ponzi scheme. A promotional group called the "Crypto Crusaders" is among those charged. Two defendants settled without admitting or denying the allegations.

Smart Contracts Don't Create Profits

Running on a blockchain only means the payments are automated. If the only money coming in is from new members, the code simply automates a pyramid. Transparency of the mechanism isn't the same as a real business.

Red Flags It Showed

• Earnings tied to recruiting
• No product beyond the "slots"
• "Decentralized, can't be shut down" marketing
• Founders mostly anonymous

What Forsage Teaches About Checking an Offer

1. Ask what product exists besides joining slots.
2. Remember that smart contracts can automate a pyramid.
3. Be wary when earnings come mainly from recruits.
4. Check whether founders are publicly identified.
5. Treat "decentralized, can't be shut down" as marketing.

See the patterns across 12 real cases in our crypto Ponzi scheme red flags guide.

If You Used Forsage

Funds sent through Forsage's smart contracts went to other participants, so recovery is very difficult. Follow the SEC case in Illinois for any official updates, keep transaction records, and avoid new "matrix" programs promising to make you whole. Report losses to the FBI's Internet Crime Complaint Center and the FTC.

A Steadier Way to Protect Savings

Schemes like this prey on people looking for fast returns. Some savers prefer slower, tangible assets for part of their retirement money. Our top pick, Augusta Precious Metals, offers a free guide to the sales tactics retirement savers should watch for; our budget pick Noble Gold offers a free economic-crisis guide. Precious metals carry their own risks and costs.

Was Forsage Legit?

No. The SEC charged it as a fraudulent pyramid and Ponzi scheme. Copycat matrix programs use the same "smart contract" pitch.

Pros and Cons

Frequently Asked Questions

Our Verdict on Forsage

Avoid matrix and "slot" programs. Automation doesn't change where the money comes from.

Precious metals prices can fall as well as rise, and a gold IRA carries setup, custody and storage fees. This page is general information, not financial, tax or legal advice. Consider speaking with a licensed financial professional before moving retirement savings.