The US Federal Trade Commission reached a settlement with four sponsors accused of fraudulent encryption schemes

The US Federal Trade Commission (FTC), the US trade regulator, reached a settlement last year on allegations that four promoters were suspected of manipulating fraudulent cryptocurrency investment plans. FTC accused Thomas Dluca, Eric Pinkston and Louis Gatto of participating in two recommended programs, the Bitcoin Funding Team and My7Network, falsely committing huge returns to participants. Scott Chandler is accused of promoting the Bitcoin Funding Team and another scam called Jetcoin. As part of the settlement announced on Thursday, Dluca will pay $453,932, Chandler will pay $31,000, and Pinkston will only pay $29,491 out of a total of $461,035 because he is unable to pay the full amount. However, the FTC said that if Pinkston was later found to have misrepresented his financial situation, he would be required to pay in full. In addition to fines, all four are permanently banned from operating, participating in or assisting others in promoting any multi-level marketing plan, pyramid, Ponzi scheme or chain recommendation program.