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Eye on Cryptocurrency: Libra Backers Getting Cold Feet? Settlement in Alleged Crypto Pyramid Scheme

Digital Transactions

Several backers of Facebook Inc.’s proposed Libra cryptocurrency are having second thoughts because of regulatory pushback, according to a British newspaper report. Meanwhile, the Federal Trade Commission announced settlements Thursday with four defendants accused of falsely promising big returns to consumers who paid in cryptocurrencies to participate in an alleged multi-level marketing scheme.

London’s Financial Times reported Thursday that “at least three” of the 28 members of the Libra Association are “privately discussing how to distance themselves from the venture.” The newspaper did not identify the three participants.

“Two of the project’s founding backers told the FT they were concerned about the regulatory spotlight and were considering cutting ties,” the newspaper reported. “Another backer said they were worried about publicly supporting Libra for fear of attracting the attention of agencies who oversee their own businesses.”


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