ICO News: Yet Another ICO Project Turned Out To Be A Ponzi Scheme CryptoPolice Follow May 8, 2018 · 2 min read

The US Federal Trade Commission (FTC) has opened criminal cases concerning cryptocurrency companies Bitcoin Funding Team and My7Network for using pyramid-type fraudulent schemes (Ponzi schemes).

A pyramid scheme — or Ponzi scheme — is one of the classic frauds, and has been well-known since the beginning of the 20th century. The main point of such a system is that the project shuffles money to pay out returns to early investors from the funds they receive from subsequent participants.

According to the FTC complaint, the defendants promoted Bitcoin Funding Team as a means for consumers to generate income and accumulate wealth by purchasing and donating Bitcoin currency to earlier “upline” participants and by recruiting others to do the same. The scheme offered no products or services. Income was derived solely from payments of later participants.

Like Bitcoin Funding Team, My7Network does not require participants to sell goods or services to generate revenue. Participants obtain rewards purely by recruiting new investors into the program.

Regardless of the fact that such a fraudulent scheme approach is well-known, a lot of people have suffered from the business activity of these companies. To stop more people from being victimised by the scheme, a federal court in Florida has ordered four men to stop their operations to promote the scam on social media platforms like Twitter and YouTube as well as through conference calls.

In this context, it is evident that the best method to protect fraud victims is by taking preventative actions. If users were notified about the fraudulent features of these projects, the number of fraud victims would be kept to a minimum.

Exactly such protection methods are offered by CryptoPolice — a platform that helps bring together community and technology in order to safeguard online users against fraud.

CryptoPolice is in the process of developing WatchDog — an antivirus-like system notifying users about the danger as soon as they open a risky website, such as those of Bitcoin Funding Team, My7Network, or many other fraudulent companies.

This isn’t first and last Ponzi scheme. IF you have ever been burned by them, help us and others who may fall into this trap. Join CryptoPolice today and make internet a safer place.

Learn more about the project — https://www.cryptopolice.com/