Promoters of Deceptive Chain Referral Schemes Involving Cryptocurrencies Agree to Settlement with FTC

The promoters of recruitment-based cryptocurrency schemes are permanently banned from operating or participating in any multi-level marketing program, as part of a settlement with the Federal Trade Commission.

Metadata
Provider: 
FTCFTC
URL: 
https://www.ftc.gov/news-events/press-releases/2019/08/promoters-deceptive-chain-referral-schemes-involvinghttps://www.ftc.gov/news-events/press-releases/2019/08/promoters-deceptive-chain-referral-schemes-involving
Retrieved on: 
Friday, August 23, 2019
Information
Tags: 
Marketing, Business models, Direct marketing, Direct selling, Economy, Business economics, Cryptocurrencies, Digital currencies, Pyramid scheme, Multi-level marketing, Bitcoin, Federal Trade Commission
Summary
Key Points: 
  • The promoters of recruitment-based cryptocurrency schemes are permanently banned from operating or participating in any multi-level marketing program, as part of a settlement with the Federal Trade Commission.
  • The FTC obtained a court order in March 2018 against Thomas Dluca, Eric Pinkston, Louis Gatto, and Scott Chandler that stopped their deceptive marketing practices and froze their assets.
  • According to the FTC, Bitcoin Funding Team and My7Network were chain referral schemesa type of pyramid scheme.
  • The FTC alleges, however, that the structure of the schemes ensured that few would benefit.
Copyright: 
2019 FTC. All Rights Reserved.