Several cryptocurrency companies are facing an investigation by the United States Federal Trade Commission (FTC) into possible misleading or misleading advertisements related to cryptocurrencies.
According to a December 6 Bloomberg report, FTC spokeswoman Juliana Gruenwald said the watchdog is investigating “several companies for possible misconduct in connection with digital assets.”
Gruenwald did not elaborate on which companies were being investigated or what had triggered the probe.
Nevertheless, Misleading advertising and promotion has been a hot topic in America this year.
In October, reality star Kim Kardashian was fined by the US Securities and Exchange Commission (SEC) for “promoting” the cryptocurrency EthereumMax (EMAX) on social media without disclosing that she had been paid $250,000 to promote it.
In November, NFL quarterback Tom Brady and NBA point guard Stephen Curry were among a group of celebrities facing an investigation by Texas financial regulator for their promotion of crypto exchange FTX.now bankrupt.
The FTC is an independent United States agency created to protect the public from deceptive or unfair trade practices. through law enforcement, research and education.
Earlier this year, they sent out an alert about a cryptocurrency scam with three key components: an impersonator, a QR code, and a cryptocurrency ATM that victims must send money to.
They also revealed in a June 6 report that nearly half of all cryptocurrency-related scams originated from social media platforms in 2021, and up to $1 billion worth of cryptocurrency has been lost to scammers throughout the year.
Cointelegraph has reached out to the FTC for comment but has not heard back at press time.
Globally, various financial watchdogs and enforcement agencies have also been actively trying to curb misleading cryptocurrency advertisements.
In March, the UK-based Advertising Standards Authority (ASA) issued an enforcement notice to more than 50 companies advertising cryptocurrency, ordering them to review their ads. to make sure they met the rules.
In August, the US consumer watchdog group Truth in Advertising criticized 19 celebrities for promoting non-fungible tokens (NFTs) without disclosing their relationship to the projects.
The Australian financial regulator has also issued warnings to the cryptocurrency industry about deceptive advertising tactics.
In October, The Australian Securities and Investments Commission (ASIC) has launched civil proceedings against Australian company BPS Financial Pty Ltd (BPS) for alleged “misleading” statements about its Qoin token.
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