The Watchdogs Try To Fight Misleading Crypto Ads And Fraud

A US user experience defender is looking into cryptocurrency companies’ false advertising. The US state trading committee is currently researching a number of cryptocurrency companies regarding potential deceptive or untruthful crypto advertising. 

The US policies and actions

A Dec. Juliana Gruenwald, a spokeswoman for FTX, stated in a June 6 Bloomberg report that the legal defender is looking into some company firms for achievable management regarding electronic possessions.

The companies which have been the main topic of the research and the events that directed to it were not further described by Gruenwald. Misleading ads and encouragements, however, have become fashionable themes among the US authorities in the current year. 

The US SEC department issued a fine to a television celebrity Kim Kardashian in the middle of this Fall for lying to her audience about the crypto coin EthereumMax at the same time hiding that she had got two hundred and fifty thousand dollars to make such add.

The United States’ independent agency was established to safeguard the general people from dishonest or biased commercial activities with the help of legal punishment, investigation, and teaching. 

The world fighting crypto scammers

They issued a warning concerning a crypto fraud already in 2022 that had 3 core parts: a false client, a link, and a crypto banking where people were being ordered to direct their possessions.

According to 6 reports, social media platforms were the source of almost fifty percent of the whole number of crypto defrauds in 2021, and scammers may have stolen up to $1 billion in cryptocurrency during the course of the year. 

Globally, a number of finance-related defenders and social control organizations have likewise been attempting to stop misleading cryptocurrency ads.

During this year, over 50 businesses that advertise cryptocurrency have received enforcement notices from the ASA department, a body based in the UK, directing them to check their advertisements for legality.

The US-based user advocacy association accused nineteen celebrities of endorsing NFT tokens, not unwrapping their affiliation with the undertakings they were endorsing.

The crypto industry has also been warned about misleading ad practices by Australia’s financial regulator.

Author: Julian Watford

Julian is one of our main writers at CryptoCoin Stock Exchange. He writes about crypto brokers and exchanges and also about news from the crypto and blockchain world.

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