Multi-level Marketing Promoter of Bitcoin Funding Team and My7Network Will Settle With FTC


The United States Federal Trade Commission (FTC) has agreed to settle the charges it filed in 2018 against a pyramid scheme that involved 4 individuals. As part of the settlement, the promoters of recruitment-based cryptocurrency schemes are permanently banned from operating or participating in any multi-level marketing program. Additionally, they are supposed to pay a fine of $500,000.

The press release states that the defendants had the structure of the schemes made sure that few would profit. Most associates failed to get back their initial investments. YouTube, conference calls, and various social media platforms were used to source new victims.

It states:

“As part of their proposed settlements with the FTC, Dluca will pay $453,932, and Chandler will pay $31,000. Pinkston also agreed to a $461,035 judgment, which will be suspended upon payment of $29,491, due to his inability to pay the full amount. If he is later found to have misrepresented his finances, he will be required to pay the full amount.”

Thomas Dulca, Eric Pinkston, Louis Gatto, and Scott Chandler were behind a prominent pyramid scheme which was shut down in 2018. Under the names Bitcoin Funding Team and My7Network, the four fraudsters recruited participants to maintain the pyramid. The Commission vote approving the stipulated final order was 5-0. The FTC filed the proposed order in the U.S. District Court for the Southern District of Florida.

Operation crypto sweep is trying to make ICOs safer in the US and Canada. It comes as part of a joint effort between state and provincial securities regulators in the US and Canada. NASAA stated in August of 2018 that the operation had investigated over 200 ICOs in its first four months of activity.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide