“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,” said 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.”
Yet another dynamic component of the scheme involves the fraudsters promising investors a fixed rate of return. In this situation, the scheme purports to pay participants on fluctuations in bitcoin exchange trading. Leveraging this scheme, the defendants went as far as to say participants could double their investment in 50 days.
The Federal Trade Commission charges that the defendants are in violation of the FTC Act prohibiting deceptive acts. Specifically, by misrepresenting the chain referral schemes as bona fide money-making opportunities. And further, by falsely claiming participants may earn substantial income by participating in the schemes.
