A US agency probing allegations of deceptive conduct confirmed on Monday that it had launched investigations into several cryptocurrency firms for “potential misconduct”. A Federal Trade Commission spokeswoman declined to name the firms or say exactly what actions prompted the investigation.
“While we cannot comment on current events in crypto markets or the details of any ongoing investigations, we are investigating a number of firms for possible misconduct related to digital assets,” the spokesperson said in a statement.
Bloomberg said in a report good The investigation was related to deceptive advertising but an FTC spokeswoman declined to confirm this.
spectacular explosion of ftx recently sent fresh shock waves through cryptocurrency industry, with a value of Bitcoin down sharply this year.
The Securities and Exchange Commission, which also has rules mandating disclosure of persons promoting securities, has cracked down on celebrity endorsements, including reality TV star Kim Kardashian, who posted a crypto token on her Instagram account. without proper disclosure that they were paid.
The FTC has also pursued companies that presented themselves as cryptocurrency-related firms but were allegedly nothing more than scams.
Back in June, FTC Told A report states that over 46,000 people have reported losing over $1 billion (roughly Rs. 8,233 crores) to cryptocurrency scams since the beginning of 2021.
According to the FTC, nearly half of people who reported losing digital currencies in a scam said it started with an ad, post or message on a social media platform.
The craze for cryptocurrencies peaked last year, when bitcoin hit a record high of $69,000 (roughly Rs. 56 lakhs) in November 2021.
According to the FTC, nearly four out of every ten dollars in social media fraud was lost in crypto, with Instagram, Facebook, WhatsApp and Telegram being the top social media platforms in such cases. Report good.
© Thomson Reuters 2022