The U.S. Federal Trade Commission is returning about 8,000 victims who suffered losses from investing in two Bitcoin scams. The fraudulent scheme promises that investors can turn their roughly $100 in cryptocurrency payments into $80,000 in monthly income.
Victims of Bitcoin Pyramid Project get refunds
The Federal Trade Commission (FTC) has begun to send refunds to the victims of two cryptocurrency investment scams: the Bitcoin funding team and My7network.
According to the Federal Trade Commission’s announcement on Wednesday, the two programs “wrongly promised that participants can make a lot of money by paying cryptocurrencies such as Bitcoin or Litecoin to join the program.” However, the FTC elaborated:
The Bitcoin Funding team and My7network are chain referral programs that rely on recruiting new people to make money. In fact, most participants failed to recover their initial investment.
Starting on November 5, the Federal Trade Commission (FTC) sent 7,964 refunds to victims of these two programs through Paypal, totaling more than $470,000. “The average refund is about $59. The FTC clarified that recipients who receive a refund via Paypal will have 30 days to accept payment.
The initiators of Thomas Dluca, Louis Gatto and Eric Pinkston were closed in March 2018. They claim that the Bitcoin fund team “can turn the equivalent of more than $100 into income of $80,000 per month,” the FTC explained, adding that the two schemes are “chain referral schemes-a kind of pyramid scheme.” .
The US Federal Trade Commission claimed that the fourth defendant, Scott Chandler, promoted the Bitcoin funding team and another deceptive cryptocurrency recruitment program called Jetcoin. The scam claimed that investors could double their investment within 50 days, but the Federal Trade Commission stated that “the program failed to fulfill these requirements and ceased operations within two months of its launch.”
The federal agency explained that the defendant violated the Federal Trade Commission’s “the Act’s prohibition on deceptive behavior because the chain referral program was mistaken as a real money-making opportunity, and it was falsely claimed that participating in the three programs could earn considerable income. “
In August last year, the promoters reached a settlement with the Federal Trade Commission. As part of the proposed settlement, Dluca will pay $453,932 and Chandler will pay $31,000. “Pinkston also agreed to a judgment of US$461,035. Since he was unable to pay the full amount, execution will be suspended after payment of US$29,491. If it is later discovered that his financial statements are incorrect, he will be required to pay in full.”
The US Federal Trade Commission stated that in addition to the monetary judgment, all four defendants “are permanently prohibited from operating, participating in or assisting others in promoting or operating any multi-level marketing plan, pyramid scheme, Ponzi scheme or chain referral plan.”
What do you think of the victims of the FTC refunding Bitcoin scam? Let us know in the comments section below.
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