U.S. regulator to pay $470 000 to victims of cryptocurrency pyramid schemes

Victims of cryptocurrency-based pyramid schemes will receive payouts from the U.S. Federal Trade Commission (FTC) totaling more than $470 000. This is reported on the agency’s site.

Payouts will go to victims of two fraudulent projects — Bitcoin Funding Team and My7Network. They promised clients high returns on investments in Bitcoin and Litecoin. Bitcoin Funding Team claimed that a $100 investment could yield $80 000 in monthly income.

However, both projects turned out to be pyramids dependent on the influx of new participants, and most had not been able to recoup their investments, the FTC noted.

The Commission will issue 7 964 refunds via PayPal. The average payout will be about $59.

Earlier, U.S. authorities confiscated cryptocurrency worth $24 million from the alleged organizer of the scheme in Brazil.

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