Alleged Crypto Pyramid Scheme Scammers Settle FTC Suit

Law360 (August 22, 2019, 8:07 PM EDT) -- Four individuals agreed to pay a total of just over $500,000 to settle the Federal Trade Commission's suit over their alleged cryptocurrency investment pyramid schemes, the agency announced Thursday.

A Florida federal court froze the assets of Thomas Dluca, Eric Pinkston, Louis Gatto and Scott Chandler in March 2018 in order to halt their alleged chain referral schemes under the names of Bitcoin Funding Team, My7Network and JetCoin, according to the FTC.

Dluca will pay $453,932, and Chandler will cough up $31,000, while Pinkston's agreed-upon $461,035 judgment will be suspended after he hands over $29,491 due to lack of funds, the...

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