The Federal Trading Commision (FTC) has declared war against cryptocurrency scammers. Last week the FTC declared that both My7Network and the Bitcoin Funding Team were Ponzi Scheme scams and four Americans which used to promote these sites received restraining orders against promoting them and their bank accounts were frozen.
What Is My7Network And Bitcoin Funding Team?
Both My7Network and the Bitcoin Funding Team are scams that operate using what is commonly called as a multi-level marketing. These are Ponzi Schemes that take money from investors and eventually vanish as soon as they make enough money.
Even when the company does not disappear (and they generally do), you can only get a profit from these companies by convincing other people to invest.
Crypto Scams Shut Down By SEC
The scammers, the FTC declares, are Thomas Dluca, Louis Gatto, Eric Pinkston. They used Youtube and social media to promote articles and videos trying to convince people that they could invest only $100 USD in these companies and that they could earn more than $80,000 USD monthly in the future.
These claims are obviously not true, as only the scammers would get profit from convincing people to join. Because of this, these people were prohibited from accessing these sites, promoting them and they had their bank accounts frozen until the FTC determines how much money they made scamming people.
Next Actions Of The FTC
The FTC has already made clear that it will not tolerate these scams and the company is articulating to create a group that will prosecute and solve cases involving Americans and cryptocurrency companies that work outside of the law.