The Federal Trade Commission (FTC) sued Thomas Dluca, Louis Gatto, Eric Pinkston, and Scott Chandler on February 16th, alleging they promoted fraudulent money-making schemes. These individuals are accused of violating the FTC Act through deceptive advertising and marketing practices.
Thomas Dluca founded and promoted Bitcoin Funding Team, a scheme the FTC described as a matrix-based gifting operation. Dluca had promised participants they would become millionaires. Bitcoin Funding Team began to falter by mid-May. Dluca also promoted My7Network, which the FTC identified as another chain referral scheme.
Louis Gatto and Eric Pinkston promoted both Bitcoin Funding Team and My7Network. Scott Chandler also promoted Bitcoin Funding Team. The FTC further linked Chandler to Jetcoin, where he served as Master Distributor. Jetcoin was a bitcoin-doubling scheme promising a 200% return on investment within 40 to 50 days. By July, Jetcoin had collapsed and resurfaced as "JetCoin 2.0," a reload Ponzi scam.
The FTC contends that the defendants have a history of promoting cryptocurrency-related money-making schemes. Their complaint cites multiple violations of the FTC Act, specifically alleging participation in chain referral schemes and making false claims about earning substantial income. The agency stated consumers have suffered and will continue to suffer injury from these defendants' actions.
According to the FTC filing, Dluca, Gatto, Pinkston, and Chandler have collectively earned millions of dollars promoting these fraudulent ventures. The FTC is seeking a preliminary injunction against all four defendants. They also want a permanent injunction to prevent future FTC Act violations and relief for consumers, including restitution and disgorgement of profits.
The FTC has previously returned $470,000 to victims of Bitcoin Funding Team.