$800,000raised for a backpack that never shipped
A Texas entrepreneur raised more than $800,000 through four Kickstarter and Indiegogo campaigns for a 'smart' backpack, delivered none of it, and was permanently banned from crowdfunding by the FTC.
The FTC alleged the money went largely to personal spending and more marketing instead of the product. The settlement's nearly $800,000 judgment was suspended because he could not pay.
Source: US Federal Trade Commission. Read more: crowdfunding fraud · case file