US Federal Trade Commission sues smart backpack iBackPack developer for allegedly using crowdfunding funds to buy bitcoin

The US Federal Trade Commission (FTC) sues developers of products such as the smart backpack iBackPack. The lawsuit alleges that developer Doug Monahan did not use his Indiegogo or Kickstarter funds to develop or deliver backpacks, but instead used funds for "various personal expenses," including the purchase of bitcoins, ATM withdrawals, and credit card repayments.