The Federal Trade Commission shut down multiple online moneymaking schemes involving cryptocurrency Friday.
bitcoin and litecoin and could only make a profit by recruiting new people, the FTC complaint said. Most, however, allegedly failed to recover the initial investment, according to the agency.
A fourth defendant, Scott Chandler, also allegedly promoted the “Bitcoin Funding Team” and a similar network “Jetcoin,” the FTC said.
Jetcoin participants were promised they could double their investment in 50 days, according to the FTC complaint. The scheme “failed to deliver on these claims and ceased operation within two months of launching,” according to the FTC.
The news follows cryptocurrency advertising bans by Google, the world’s largest online ad provider, this week. The tech giant announced an update to its financial services policy Wednesday that will restrict advertising for “cryptocurrencies and related content” starting in June.
Facebook, the world’s second-largest online ad provider, took similar action in January. The social network announced it would ban all ads that promote cryptocurrencies, to prevent the spread of what the company called “financial products and services frequently associated with misleading or deceptive promotional practices.”