FTC lawsuit reveals how subscription scam networks evade app store enforcement | TechCrunch
SearchSubmit
Site Search Toggle
Mega Menu Toggle
Topics
Latest
AI
Amazon
Apps
Biotech & Health
Climate
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
Staff
Events
Startup Battlefield
StrictlyVC
Newsletters
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Image Credits: Bryce Durbin / TechCrunch
Government & Policy
FTC lawsuit reveals how subscription scam networks evade app store enforcement
Sarah Perez
12:46 PM PDT · June 17, 2026
A new lawsuit filed by the U.S. Federal Trade Commission (FTC) is a showcase of how hard it’s become to police the app stores for scammy apps. The suit alleges that a company known as Genesis Tech defrauded consumers and routed revenues overseas through the use of shell companies designed to conceal its identity and hide its assets.
Genesis Tech’s network allegedly included a series of subsidiaries incorporated in Cyprus and operating in Ukraine, which marketed its apps to U.S. consumers. Among its brands were fitness and nutrition apps MadMuscles, Harna, and Unimeal by Amoapps Limited; PDF Guru and PDF Master from Gurudocs Limited; fashion app Lumi from Bramol Limited; horoscope app Nebula by Obrio Limited; habit and personal productivity apps under the brand Wisey by Koflimin Limited; and others.
From early 2023 to mid-2025, these five companies’ product offerings accounted for nearly a quarter of a billion dollars in global revenue.
The suit also notes that, in the 12 months ending in September 2025, the transactions through all the company’s connected PayPal accounts totalled nearly $700 million.
The case highlights a growing challenge for Apple and Google, as subscription scams evolve beyond individual apps into intricate networks of shell companies. Genesis Tech, for instance, registered new corporate entities and created multiple merchant accounts to hide its identity, the suit claims, and would then transfer the money it made across borders among its various corporate affiliates.
By continually making new accounts, the app publisher was able to avoid fraud monitoring programs for years, the FTC explains.
Like other scammy subscription apps plaguing today’s app stores that have drawn scrutiny from regulators and consumer advocates, Genesis Tech’s products made it easy to sign up but hard to cancel.
While the company promoted its products as free or low-cost, consumers who signed up would instead be met with auto-renewing subscriptions. At times, the company would also charge customers for extra products without their knowledge or consent or even double-charge them.
The company also made cancellation difficult by omitting cancellation options from its websites and apps, and would often continue charging customers without authorization, the FTC’s suit says.
Genesis Tech’s practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), the complaint says. It also names Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk as co-defendants in the case, which will be tried in the U.S. District Court for the Northern District of California.
TechCrunch reached out to Genesis Tech for comment through the publicly available email addresses for the subsidiaries named in the case. A comment was not immediately provided.
The FTC has taken mobile app makers to court before, having investigated and settled cases with the anonymous teen Q&A app NGL, dating app giant Match, gig app Handy, kids’ app maker HyperBeard, and adjacent players, like mobile ad company Tapjoy or data broker X-Mode, among others.
Topics
Apps, Apps, Commerce, FTC, Government & Policy, lawsuit, scams
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah Perez
Consumer News Editor
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing sarahp@techcrunch.com or via encrypted message at sarahperez.01 on Signal.
View Bio
June 18
Los Angeles
Get an inside look at what it takes to scale and succeed from leaders at Mach Industries, Founders Fund, and Shinkei Systems. Through candid fireside chats and high-impact networking, you’ll walk away with valuable insights and new connections.
REGISTER NOW
Most Popular
SpaceX to acquire Cursor for $60B in stock, days after blockbuster...