FTC sues smart backpack creator for allegedly using crowdfunded money to buy bitcoin

The Federal Trade Commission is indicting a gentleman for supposedly passing off with more than $800,000 he invoked on crowdfunding scaffolds for the purposes of the proposition of creating a smart knapsack and other produces. The Verge first separated the bulletin of the iBackpack investigation in August, but today marks the agency’s first acknowledgment of its work.

The lawsuit claims that the builder, Doug Monahan, didn’t employment his raised Indiegogo or Kickstarter funds to develop or deliver the knapsack, but instead, he introduced the money toward “various personal expenditures, ” including the purchase of bitcoin, ATM withdrawals, and be paid by charge card. The bureau too claims that sponsors contacted out to Monahan, but he ignored their complaints, be closed down the company, and ceased…

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