Categories: Bitcoin Business

FTC Settles With Promoters of Multi-Level Marketing Crypto Scheme

Click here to view original web page at

The U.S. Federal Trade Commission (FTC), has settled charges it filed last year against four promoters of crypto-denominated multi-level marketing schemes.

Following a federal trial in a Florida court, the operators of the fraudulent investment schemes are ordered to pay restitution and have been barred from operating or participating in other such MLM schemes, according to a statement made by the FTC on August 22.

Under the corporate names Bitcoin Funding Team and My7Network, the fraudsters promoted their crypto investment schemes by misrepresenting potential earnings. They used social media, YouTube and conference calls to promote the scams.

In one instance, investors were promised $80,000 in monthly income from an initial investment of $100.

Thomas Dulca, Eric Pinkston, Louis Gatto and Scott Chandler sat at the top of a pyramid scheme. In order to stay in operation, investors were encouraged to recruit new participants. Though promised large rewards, most participants “failed to recoup their initial investment.”

In addition to his promotion of Bitcoin Funding Team, Chandler advertised for Jetcoin, “which promised participants a fixed rate of return, but failed to deliver on these claims,” the FTC alleged.

Dulca and Pinkston are required to pay $453,932 and $461,035, respectively, though Pinkston’s, who is unable to pay the full amount, will be suspended upon payment of $29,491. Chandler is ordered to pay $31,000.

It is unconfirmed whether Gatto will pay a settlement for his involvement in the chain referral schemes.

In 2018, the FTC successfully petitioned the court to freeze the fraudster’s assets. The U.S. regulator also asked the court to order the defendants to stop working together or creating new business entities.

As part of the settlement, the men are barred from ever “operating, participating in, or assisting others in promoting or operating any multi-level marketing program, pyramid, Ponzi, or chain referral scheme.” They are also barred from misrepresenting investment opportunities.

Justice image via Shutterstock

Following a federal trial in a Florida court, the […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Opinion: We Want Bitcoin Results, Not Predictions

Is it safe to say that people are tired of talking about bitcoin? While not necessarily bored by it, they… Read More

5 hours ago

THE BLOCKCHAIN IN ADVERTISING REPORT: Blockchain’s potential to reduce ad fraud and how marketers can get ready

This is a preview of a research report from Business Insider Intelligence . To learn more about Business Insider Intelligence,… Read More

5 hours ago

Blockchain Technology Market 2019 Emerging Technology Research Report by Key Players- Microsoft ,Samsung, IBM, Deloitte,BTL Group, Linux Foundation

New York, NY 16 Sep 2019: – According to a new study published by Polaris Market Research the global blockchain… Read More

5 hours ago

Blockchain to transform most industries in 5-10 years

(Image: Stockfresh) Pro 16 September 2019 | 0Research firm Gartner, whose past evaluations of blockchain have been conservative to say… Read More

5 hours ago

Bitcoin was Facebook’s first choice says Abra’s CEO

Bill Barhydt, CEO of Bitcoin investment platform Abra , claims that Facebook staffers told him the company wanted to use… Read More

5 hours ago

Is This The Biggest Threat To Bitcoin, Crypto, And Facebook’s Libra?

Bitcoin and crypto investors were put on notice this week when French and German government officials backed European Central Bank… Read More

5 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More