Startups & Technology

FTC Lawsuit Exposes Massive Subscription Scam Network

FTC Lawsuit Exposes Massive Subscription Scam Network

The network operated under various brands including MadMuscles, PDF Guru, and Nebula, masking its true scale by distributing apps across multiple subsidiaries incorporated in Cyprus and Ukraine. By constantly registering new merchant accounts, Genesis Tech avoided fraud detection systems for years, allowing it to generate a quarter of a billion dollars in revenue between early 2023 and mid-2025.

Consumers were often lured by low-cost or free trials, only to be hit with unauthorized auto-renewals and hidden charges. The FTC alleges these practices violate both the FTC Act and the Restore Online Shoppers’ Confidence Act, specifically noting the company’s deliberate removal of cancellation options from its software. The case, filed in the U.S. District Court for the Northern District of California, lists Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk as co-defendants. Despite the scale of the operation, representatives for the subsidiaries did not respond to requests for comment.

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