FTC lawsuit details how subscription scam networks evade app store enforcement
10 reported
A new lawsuit filed by the U.S. Federal Trade Commission (FTC) alleges that a company known as Genesis Tech defrauded consumers and routed revenues overseas through shell companies designed to conceal its identity and hide its assets. The suit claims Genesis Tech’s network included subsidiaries incorporated in Cyprus and operating in Ukraine, which marketed fitness, productivity, fashion, horoscope, and habit apps to U.S. consumers. From early 2023 to mid-2025, these companies’ product offerings accounted for nearly a quarter of a billion dollars in global revenue. The case highlights a growing challenge for Apple and Google, as subscription scams evolve into intricate networks of shell companies that avoid fraud monitoring by continually making new accounts. The FTC alleges the company made it easy to sign up but hard to cancel, charging consumers without authorization and omitting cancellation options. The complaint names six individuals as co-defendants and will be tried in the U.S. District Court for the Northern District of California. TechCrunch reached out to Genesis Tech for comment but did not receive an immediate response.
What’s reported
The FTC lawsuit alleges Genesis Tech defrauded consumers and routed revenues overseas through shell companies.
Genesis Tech’s network included subsidiaries incorporated in Cyprus and operating in Ukraine.
Brands included MadMuscles, Harna, Unimeal, PDF Guru, PDF Master, Lumi, Nebula, and Wisey.
From early 2023 to mid-2025, these companies’ product offerings accounted for nearly a quarter of a billion dollars in global revenue.
In the 12 months ending September 2025, transactions through all the company’s connected PayPal accounts totaled nearly $700 million.
The company registered new corporate entities and created multiple merchant accounts to hide its identity, the suit claims.
The company made it easy to sign up but hard to cancel, omitting cancellation options and charging without authorization.
The practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
Six individuals are named as co-defendants: Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk.
The case will be tried in the U.S. District Court for the Northern District of California.
Key figures
Stamatis Skianis (co-defendant)
Oksana Kucher (co-defendant)
Iryna Oleksyn (co-defendant)
Olga Garbuzenko (co-defendant)
Rostyslav Ivanitsa (co-defendant)
Viktoriia Savchuk (co-defendant)
Sources: TechCrunch
