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US Consumer Protection Agency investigates crypto companies for misleading advertising

Published on

February 5, 2023
Read Time:2 Minute, 12 Second

A number of crypto corporations are going through an investigation by the USA Federal Commerce Fee (FTC) over doable fraudulent or deceptive promoting associated to cryptocurrencies.

In keeping with a December 6 report report Chatting with Bloomberg, FTC spokeswoman Juliana Gruenwald stated the regulator is investigating "a number of companies for doable wrongdoing in relation to digital property."

Gruenwald didn't present any additional details about which corporations had been the topic of the investigations or what had triggered the investigations.

Nevertheless, deceptive promoting and promotions have been a trending subject within the US this 12 months.

In October, actuality TV star Kim Kardashian was fined by the USA Securities and Change Fee (SEC) for selling crypto token EthereumMax (EMAX) on social media with out disclosing that her Paid $250,000 for promoting.

In November, NFL quarterback Tom Brady and NBA level guard Stephen Curry had been reportedly amongst a gaggle of celebrities underneath investigation by the Texas Monetary Regulator for his or her sponsorship of now-bankrupt crypto trade FTX.

The FTC is an impartial United States company established to guard the general public from fraudulent or unfair enterprise practices by way of regulation enforcement, analysis and schooling.

Earlier this 12 months, they despatched out an alert a couple of crypto rip-off with three key elements, an impersonator, a QR code, and a crypto ATM that instructs victims to ship cash.

In addition they revealed in a June 6 report that almost half of all crypto-related scams in 2021 got here from social media platforms, and as a lot as $1 billion in crypto was misplaced to scammers over the 12 months.

Cointelegraph reached out to the FTC for remark however acquired no response on the time of publication.

Associated: Saying "No Monetary Recommendation" Will not Preserve You From Jail - Crypto Legal professionals

A number of monetary regulators and regulation enforcement businesses all over the world have additionally been actively attempting to curb misleading crypto promoting.

In March, the UK-based Promoting Requirements Authority (ASA) problematic issued an enforcement discover to over 50 corporations selling crypto, instructing them to evaluation their advertisements to make sure they adjust to the foundations.

In August, US-based client advocacy group Fact in Promoting took 19 celebrities to activity for allegedly selling non-fungible tokens (NFTs) with out disclosing their connection to the initiatives.

Australia's monetary regulator has additionally issued warning pictures throughout the crypto business over misleading promotional techniques.

In October, the Australian Securities and Investments Fee (ASIC) launched civil proceedings in opposition to Australian agency BPS Monetary Pty Ltd (BPS) over alleged “deceptive” representations relating to its Qoin token.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : February 5, 2023
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