Federal Trade Commission FTC United States

US Federal Trade Commission Establishes a Blockchain Working Group to Target Fraudulent Schemes

The United Sates is moving forward in order to protect customers against possible frauds and scams in the cryptocurrency environment. This time, the US Federal Trade Commission (FTC), has decided to create a blockchain working group. Its main task will be to identify and target fraudulent schemes that affect consumers and investors.

US Federal Trade Commission Blockchain Working Group

The information has been released on the official website of the FTC. It explains what cryptocurrencies are, how they work and how to avoid scams or illicit crypto related activities.

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FTC Federal Trade Commission Logo

The article reads as follows:

“Given these various properties, it is no surprise that fraudsters might use cryptocurrencies in their scams. As the primary federal general consumer protection agency, the FTC has seen this pattern before. Fraudsters often attempt to capitalize on the excitement and confusion around hot new technologies, and they are quick to dress up old schemes in the clothes of the latest and greatest innovations.”

In order to stop that and target these fraudsters, the FTC has decided to announce a lawsuit against individuals that have been promoted one of more fraudulent “chain referral schemes.” Some of the new schemes are related to ICOs that do not accomplish their goals once they receive investor’s funds.

As these developments affect the FTC work, the agency has decided to create an internal FTC Blockchain Working Group. The group has three goals: build on FTC staff expertise in cryptocurrency and blockchain technology, facilitate internal communication and external coordination on enforcement actions, and serve as an internal forum of brainstorming potential impacts on the FTC’s dual missions.

“Because these developments broadly affect the FTC’s work across the agency, we have created an internal FTC Blockchain Working Group. This working group builds on the significant work the FTC has already done on these topics,” reads the statement. “We believe this working group is an important step to ensure the FTC can continue its mission to protect consumers and promote competition in light of cryptocurrency and blockchain developments.”

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