Several crypto companies have faced an investigation from the United States Federal Trade Commission (FTC) for possible deceptive or misleading advertisements regarding cryptocurrencies. Here are the details…
Cryptocurrency companies are the focus of the FTC
According to some reports that came to light today, FTC spokesperson Juliana Gruenwald said the observer was investigating “several firms for possible misconduct related to cryptoassets.” Gruenwald did not provide further details on which firms were the subject of investigation or what triggered the investigation. However, deceptive advertising and publicity has been a trending topic in the US this year.
As we reported on Kriptokoin.com, in October, reality TV star Kim Kardashian was fined by the United States Securities and Exchange Commission (SEC) for “unannounced advertising on social media” about EthereumMax (EMAX) cryptocurrency. Kardashian did not disclose that she was paid $250,000 to promote the coin.
In November, NFL quarterback Tom Brady and NBA quarterback Stephen Curry faced an investigation from the Texas financial regulator for promoting the now-bankrupt crypto exchange FTX. The FTC is an independent United States agency created to protect the public from misleading or unfair business practices through law enforcement, research, and education.
$1 billion went to scammers this year
Earlier this year, the CFTC sent out a warning about a crypto scam consisting of three key components, a scammer QR code and a crypto ATM. They also stated in a report published June 6 that in 2021, almost half of all crypto-related scams originate from social media platforms. They revealed that up to $1 billion in cryptocurrencies were lost to scammers during the year.
Globally, several financial custodians and enforcement agencies are actively trying to block deceptive crypto ads. In March, the UK-based Advertising Standards Authority (ASA) took action against more than 50 companies advertising crypto. He instructed these companies to review their ads to make sure they were following the rules. So he issued a sanction notice.
In August, the US-based consumer monitoring group Truth in Advertising targeted 19 celebrities. He called these people for allegedly promoting NFT without revealing their ties to the projects. Australia’s financial regulator has issued a crypto industry-wide warning of deceptive advertising tactics. In October, a move came from the Australian Securities and Investments Commission (ASIC). It has filed a civil lawsuit against Australian firm BPS Financial, which it says is “misleading” regarding the Qoin token.
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