The United States Securities and Exchange Commission (SEC) has warned of crypto phenomena promoting scam projects.
The SEC has followed up on crypto phenomena found to be promoting scam projects and manipulating the prices of certain assets via social media. John Reed Stark, the former head of the SEC, warned on Twitter that they should be prepared to prosecute crypto influencers. In his post, Stark addressed crypto phenomena that support multiple crypto projects and help them manipulate market prices during the bull run.
Stark Cited Francis Sabo
Stark noted that the same anti-fraud rules apply to any price manipulation for the price of exchange-traded securities, stocks, or crypto securities.
The former SEC official pointed out that many social media phenomena defraud their victims in an arrogant and arrogant way. Stark noted that the nature of securities fraud makes it easy to detect and prosecute, unlike other types of fraud, where the perpetrator often tries to hide behind his or her identity.
The former president cited Francis Sabo, who was accused in a $100 million securities fraud case and used social media platforms to manipulate listed stocks.
Besides Sabo, there are numerous crypto phenomena found to be violating securities law. The most famous case is Kim Kardashian, who was fined $1.26 million for promoting a scam project.
Another notable phenomenon facing the law was Bitboy Crypto, which faced a lot of public backlash for promoting dubious projects. The famous Youtuber faced a $1 billion lawsuit for promoting unregistered securities.
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