The US FTC will compensate $470,000 victims of two cryptovoltaic pyramids

Federal Trade Commission (FTC) of the USA will reimburse 8,000 people who lost money as a result of investments in two fraudulent cryptographic schemes – Bitcoin Funding Team and My7network.

According to application
FTC, the organizers of two fraudulent schemes “falsely promised that participants could earn large sums of money by contributing cryptographic currency such as BTC or LTC”. FTC writes:

“Bitcoin Funding Team and My7network were cryptic currency pyramids. Most of the scheme participants failed to return their initial attachments”;

Starting from November 5, FTC sends 7,964 transfers via Paypal totaling more than $470,000 to the scheme victims. “The average amount of compensation is approximately $59. The users who received the money through Paypal will have 30 days to accept the payment,” explained FTC.

US Federal Trade Commission applied
two suits against fraudulent Bitcoin Funding Team and My7network cryptographic schemes in 2018. The organizers of two schemes Thomas Dluca, Louis Gatto and Eric Pinkston were arrested in 2018. They claimed that employees of their companies “would help turn a payment of just over $100 into a monthly income of $80,000”;

The fourth defendant, Scott Chandler, promoted another Jetcoin cryptovoltaic pyramid where investors were promised to double their investment in 50 days. The FTC states that “the scheme failed to meet those requirements and shut down within two months after launch. Last August, the scheme organizers adjusted
claims from the FTC. As part of the proposed settlement, Dluka paid $453,932 and Chandler paid $31,000.

“Pinkston also agreed to a $461,035 court order for compensation, which will be suspended after the payment of $29,491 due to his inability to pay the full amount. If it turns out later that he has hidden his assets, he will be obliged to pay the full amount,” the regulator said;