iBackPack creator is sued by FTC for spending crowdfunding money, including buying bitcoins

The Federal Trade Commission has sued the creator of iBackPack for allegedly using funds raised via crowdfunding for personal purposes, FTC writes. Douglas Monahan raised more than $800,000 through various crowdfunding campaigns for tech products he never delivered to his customers.

Instead of developing a high-tech backpack, Monahan allegedly used a large portion of the funds for himself, including “making bitcoin purchases and ATM withdrawals and paying off personal credit cards,” according to the FTC complaint. Monahan also purportedly used the funds to promote subsequent crowdfunding campaigns.

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