US FTC Investigating Several Crypto Firms Over ‘Possible Misconduct’ Concerning Digital Assets

A US company that probes allegations of misleading conduct confirmed on Monday that it had investigations open into a number of cryptocurrency corporations for “doable misconduct.” The Federal Commerce Fee spokesperson declined to call the corporations or say exactly what actions prompted the investigations.

“Whereas we won’t touch upon present occasions within the crypto markets or the main points of any ongoing investigations, we’re investigating a number of corporations for doable misconduct regarding digital belongings,” the spokesperson stated in a press release.

Bloomberg stated in a report that the investigation was linked to deceptive promoting however the FTC spokesperson declined to verify this.

The spectacular implosion of FTX not too long ago despatched contemporary shock waves by way of the cryptocurrency business, with the worth of Bitcoin down sharply this 12 months.

The Securities and Change Fee, which additionally has laws mandating disclosures from people selling securities, has cracked down on superstar endorsements, together with actuality TV star Kim Kardashian on allegations of selling a crypto token on her Instagram account with out correct disclosure that she had been paid.

The FTC has additionally pursued firms that offered themselves as cryptocurrency-related corporations however which had been allegedly nothing greater than scams.

Again in June, the FTC stated in a report that greater than 46,000 individuals reported dropping over $1 billion (roughly Rs. 8,233 crore) in cryptocurrency scams for the reason that begin of 2021.

Practically half the individuals who reported dropping digital currencies in a rip-off stated it began with an advert, publish or a message on a social media platform, in line with the FTC.

The craze for cryptocurrencies was at a fever pitch final 12 months with Bitcoin hitting a document excessive of $69,000 (roughly Rs. 56 lakh) in November 2021.

Practically 4 out of each ten {dollars} misplaced in a fraud originating on social media was misplaced in crypto, excess of some other cost methodology, with Instagram, Fb, WhatsApp and Telegram being the highest social media platforms in such instances, in line with the FTC’s report.

© Thomson Reuters 2022

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