The Federal Trade Commission is sending PayPal payments totaling more than $470,000 to people who lost money to deceptive chain referral schemes involving cryptocurrencies.
According to the FTC, the defendants promoted Bitcoin Funding Team and My7Network, which falsely promised that participants could earn large amounts of money by paying cryptocurrency such as Bitcoin or Litecoin to enroll in the schemes. However, Bitcoin Funding Team and My7Network were chain referral schemes that depended on the recruitment of new people to make money. In fact, most participants failed to recoup their initial investments.
As part of the settlement, the FTC will send 7,964 refunds through PayPal beginning on November 5, 2020. The average refund is approximately $59. Recipients who receive a refund via PayPal will have 30 days to accept the payment.
The FTC never requires people to pay money to get a refund payment. For more details about the PayPal payment process, please read the related FAQ. Consumers who did not receive a refund and think they should have, or have any questions about the refunds, should contact the refund administrator, Rust Consulting Inc., at 1-866-591-7254 or by email at admin@BitcoinFundingRefund.com.
The FTC’s interactive dashboards for refund data provide a state-by-state breakdown of refunds. In 2019, FTC actions led to more than $373 million in refunds to consumers across the country.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.