U.S FTC Probing Crypto Firms Over False Promotions Post FTX Fall

CEO of Crypto News Platform ‘The Block’ Resigns Post FTX Link
  • The FTC was established as a separate United States government body.
  • The agency also educates on how to avoid unfair or deceptive business practices.

The United States Federal Trade Commission (FTC) is investigating several cryptocurrency businesses. For what it believes to be fraudulent or misleading cryptocurrency-related advertising. A spokesperson for the Federal Trade Commission, Juliana Gruenwald, was quoted in a Bloomberg article published on December 6. She said that the agency is looking into “several firms for possible misconduct concerning digital assets.”

However, Gruenwald did not elaborate on the nature of the inquiry or the companies that were being looked at. Contrarily, this year in the United States, reports about misleading marketing campaigns have been all the rage.

Stringent Approach Post FTX Fiasco

The U.S. Securities and Exchange Commission (SEC) issued a punishment against reality TV actress Kim Kardashian in October. For “touting on social media” about the EthereumMax (EMAX) cryptocurrency without revealing she was paid $250,000.

Reports surfaced in November that a number of celebrities, including NFL quarterback Tom Brady and NBA point shooter Stephen Curry, were being investigated by the Texas financial regulator for promoting the now-defunct cryptocurrency exchange FTX.

The Federal Trade Commission (FTC) was established as a separate United States government body to enforce consumer protection laws, conduct research, and educate the public on how to spot and avoid unfair or deceptive business practices.

Earlier this year, they issued a warning on a cryptocurrency fraud involving an imposter, a quick response (QR) code, and a cryptocurrency automated teller machine (ATM). Another analysis from June 6 found that as much as $1 billion in crypto has been stolen by fraudsters last year, with over half of all crypto-related scams coming from social media sites.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.