The U.S. Federal Trade Commission (FTC) on Oct. 26 sent what’s known as a “Notice of Penalty Offense” to more than 1,000 companies, including the crypto exchanges Blockchain, Gemini, U.K.-based Bixo and other fintech and crypto firms. The notices, which warn businesses not to overstate the earning potential of investments or business opportunities, were also sent to a large number of gig-work platforms, multi-level marketing firms (MLMs) and franchise companies, all of which can sometimes resemble exploitative pyramid schemes, and often leave would-be entrepreneurs feeling duped.
The FTC Doesn’t See the Difference Between Crypto and LuLaRoe
