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<p>The FTC has <a href="https://www.ftc.gov/system/files/documents/cases/dluca_-_bitcoint_funding_team_complaint.pdf">introduced</a> that they’ve issued momentary restraining orders and frozen the belongings of a crew of three defendants who pitched funding recommendation because the Bitcoin Funding Team and <a href="http://my7network.com">My7Network</a>. The FTC claims that the defendants “promised big rewards for a small payment of bitcoin or Litecoin.”</p>
<p>From the report:</p>
<blockquote>
<p>According to the FTC, Bitcoin Funding Team and My7Network members might solely generate income by recruiting new members and convincing them to additionally pay cryptocurrency. For instance, Bitcoin Funding Team members have been required to make an preliminary bitcoin cost to an earlier participant and pay a payment to Bitcoin Funding Team. With these funds, members have been eligible to recruit new members and obtain funds from them. Promoters claimed members might earn greater rewards in the event that they paid extra bitcoins.</p>
</blockquote>
<p>In brief, this was a conventional Ponzi scheme wrapped in crypto clothes. It is essential to notice that the usage of cryptocurrency on this case was not the FTC’s major criticism on this case and that the defendants would have run afoul of the regulation in the event that they requested money or checks or every other technique of cost.</p>
<p>“This case shows that scammers always find new ways to market old schemes, which is why the FTC will remain vigilant regardless of the platform – or currency used,” stated Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection. “The schemes the defendants promoted were designed to enrich those at the top at the expense of everyone else.”</p>
<p>Further, one other defendant, Scott Chandler, pitched the Bitcoin Funding Team and one thing known as Jetcoin (or, extra exactly, <a href="https://www.ripoffreport.com/reports/jet-coin-scott-chandler-greg-aggesen-brent-robinson-troy-redja/internet/jet-coin-scott-chandler-greg-aggesen-brent-robinson-troy-redja-gladiacoin-jet-coinsc-1387025">Jet-coin</a>). “Jetcoin also promoted a recruitment scheme and additionally promised investors a fixed rate of return on their initial bitcoin investments as a result of bitcoin trading. In a series of promotional calls, Chandler claimed Jetcoin participants could double their investment in 50 days,” stated the FTC.</p>
<p>One sufferer posted a message in July claiming that this crew promised huge returns and didn't ship. “I joined Gladiacoin where they agreed to pay 2.2% per day when you bought packages w/Bitcoin,” wrote the person, Lisa Criss. “Right after joining they changed their % to less, they also had several days where they didn’t pay, then they said you have to pay a 15% fee or they wouldn’t give you your earnings. Then they closed down. I lost about $400. Then there was Jet-coin, started at 4%, then went down to 3.3, then went to 1.1% per day.”</p>
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