The United States Federal Trade Commission (FTC) has brought a lawsuit against iBackPack to court for using raised funds against originally committed purpose, including spending on Bitcoin and credit card bills.

Filing to U.S. District Court for the Southern District of Texas, US FTC accused iBackPack and its creator Douglas Monahan of misusing a major part of $800,000 crowdfunding money raised from consumers in four campaigns, according to the court filing revealed earlier this week.

Previously, Monahan organized two Kickstarter campaigns for his idea of battery-incorporated backpack that can charge mobile devices, cables and a Bluetooth speaker, following by Indiegogo campaigns for other products as well. He then updated status for some of the products as “on their way here” or were “done/finished/shipped over with.”

However, Monahan reportedly ended up using raised money to buy Bitcoin, withdraw cash from ATM and pay off personal credit cards. If this is the case, this action violates the FTC Act of “unfair or deceptive acts or practices in or affecting commerce.”, as FTC claimed in the filing.

Therefore, the court may “award ancillary relief, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies”.

Andrew Smith, Director of the FTC’s Bureau of Consumer Protection said in a statement: “If you raise money by crowdfunding, you don’t have to guarantee that your idea will work. But you do have to use the money to work on your idea—or expect to hear from the FTC.”

Last month, LocalBitcoins trader who illegally sold Bitcoin to more than 1,000 people in the US has been sentenced by a California court to two years’ imprisonment, and ordered to give up $823,357 in illicit profits.