Posted Feb 23:
A nice reminder to audit the code of the DeFi protocol you’re using.
The founders of Forsage, a alleged Ponzi purporting to be a DeFi protocol have been indicted for fraud. That’s not the funny part.
Analysis of the computer code underlying Forsage’s smart contracts allegedly revealed that, consistent with a Ponzi scheme, 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.