$122,000 Kickstarter Fraud Case Highlights Dangerous Lack of Regulation

From Newsweek, “A crowdfunding fundraiser who defrauded supporters of $122,000 (€107,000) is facing legal action in the first crowdfunding case which highlights the lack of regulation in the billion-euro sector.

The US Federal Trade Commission (FTC) launched legal proceedings on Wednesday against Erik Chevalier, who raised the money using Kickstarter to ostensibly develop a Monopoly-style boardgame but failed to deliver on the project.

The FTC maintains that Chevalier used the swindled money to relocate to Oregon and pay his rent. US authorities handed a $112,000 suspended judgement to Chevalier, who claims he does not have the means to pay the money back.

However, the site does not offer refunds to backers who have been defrauded by false creators and says it cannot guarantee the authenticity of projects.”

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