FTC lawsuit reveals how subscription scam networks evade app store enforcement

4 hours ago

The FTC filed a lawsuit against Genesis Tech for defrauding consumers and using shell companies to hide assets.
Genesis Tech operated through subsidiaries in Cyprus and Ukraine, promoting apps like MadMuscles, PDF Guru, and Nebula.
From early 2023 to mid-2025, these apps generated nearly $250 million in global revenue.
In the year ending September 2025, transactions via connected PayPal accounts totaled about $700 million.
The company evaded fraud monitoring by creating new corporate entities and merchant accounts repeatedly.
Apps made subscriptions easy to sign up for but hard to cancel, often charging without consent.
Genesis Tech omitted cancellation options and continued unauthorized charges, violating FTC Act and ROSCA.
Six individuals are named as co-defendants; the case will be tried in California.
The FTC has previously taken action against other app makers like NGL, Match, and HyperBeard.

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