Bitcoin: Cryptocurrency scammers sued by US Federal Trade Commission

The US Federal Trade Commission (FTC), Washington's consumer watchdog, has filed a lawsuit against two businesses it accuses of operating cryptocurrency pyramid schemes. The FTC is taking action against Bitcoin Funding Team and My7Network over what it defines as "chain referral" scams, in which participants pay upfront entry fees in order to be able to recommend others to follow suit. The companies allegedly promised customers who made an initial investment of just $100 (£71) that they could earn an $80,000 (£56,938) monthly income from doing so - although payouts seldom amounted to anything like that. The two businesses defrauded an estimated 30,000 people worldwide between them, the lawsuit alleges. "Bitcoin Funding Team's structure, which created a continual chain of recruitment and recruitment-related payments, ensured that few participants would obtain the results depicted or projected by the defendants," the FTC's complaint reads.