The US Federal Trade Commission (FTC) said on Monday that several cryptocurrency He said he was investigating his company over allegations that their ads were deceptive or misleading.
Federal Trade Commission (FEC): “We Are Investigating Several Cryptocurrency Companies for Possible Abuse”
“We are investigating several firms for potential misconduct related to digital assets,” FTC spokeswoman Juliana Gruenwald Henderson told Bloomberg News. Henderson declined to provide further details about the undercover investigations.
The consumer protection agency enforces laws that require truth in advertising, including rules that require individuals to disclose that they are being paid for ads or reviews.
The U.S. Securities and Exchange Commission (SEC) also has regulations regarding the disclosures that securities advertisers must make.
The SEC has used these rules to block celebrity ads in the crypto space, particularly in a recent enforcement action against Kim Kardashian.
Kardashian has not accepted or denied allegations that the SEC has illegally promoted a crypto token without proper explanation on her Instagram account, but has agreed to pay $1.26 million to fix the issue.
Investors have sued cryptocurrency exchange FTX for false advertising, among other allegations, following the collapse of the company owned by Sam Bankman-Fried. Customers who have deposited money into interest-bearing accounts at FTX establishments claim that celebrities like Tom Brady and Stephen Curry have been misled by their advertisements and are unaware that their accounts are “non-registered securities.”
*Not investment advice.
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