Starting on November 5, FTC has been sending PayPal payments of more than $470,000 to investors who lost money to manipulative chain referral schemes involving cryptocurrencies. Participants believed that they could earn large profits by paying bitcoins or litecoins to the marketed schemes.
In March 2018, FTC already obtained a court order against the individuals behind the money-making activities. In particular, the accused include Thomas Dluca, Louis Gatto, and Eric Pinkston. They were using YouTube and other social media websites to trick people. The scheme lets people invest $100 and turn it into $80,000 in monthly income.
As part of the settlement, FTC now delivers the refund to the affected investors. The average refund is approximately worth $59. Moreover, recipients who receive a refund via their PayPal accounts will have 30 days to accept the payment.
In response to these cybercrimes, former Acting Director of the FTC’s Bureau of Consumer Protection Tom Pahl stated that,
Scammers always find new ways to market old schemes…
On the other hand, the US Department of Justice also recently seized cryptocurrencies worth $24 million. This is in connection with the Brazilian federal police investigation about a large cryptocurrency fraud scheme. The so-called Operation Egypto disclosed that from August 2017 to May 2019, Marcos Antonio Fagundes and other defendants solicited funds from people online and illegally held the funds, violating the Brazilian law.
In comparison to the Bitcoin Funding Team and My7Network scams, the Operation Egypto victims are yet to be compensated for their losses. Generally speaking, these legal actions show that the authorities are being keen on crypto frauds.
Read Also: British Granny Loses $84,000 to Two Crypto Scam Attempts