The US Federal Trade Commission (FTC) has reconciled with the founders of the Bitcoin Funding Team and My7Network, two cryptocurrency pyramids operating in the United States. Together, they have to pay almost $1 million.
US authorities ordered the founders of crypto pyramids to pay $1 million
According to the FTC, four U.S. citizens participated in the creation of the two crypto pyramids: Thomas Dalka, Eric Pinkston, Louis Gatto and Scott Chandler. They lured crypto enthusiasts, promising them fabulous profits. Allegedly, investors could earn $80,000 from a contribution of $100.
And so that investors "continued to earn" they were forced to find and attract more new customers. Of course, no one saw the promised profit among them.
The FTC sued the four last year. On August 22, the authorities agreed with them and ordered them to pay money to the victims, fines, and also forbade them from participating in such projects.
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- Under the agreement, Thomas Dalka is required to pay $453 932.
- Eric Pinkston agreed to give back $461 035.
- Scott Chandler has to pay $31 000.
- It is still unknown whether Gatto will pay.
- In 2019, crypto pyramids became one of the most dangerous threats in the crypto market. According to CipherTrace, in just 2 quarters of this year, such projects stole $3,1 billion from gullible crypto enthusiasts.
Editor: Jerg Wos