US Consumer Group Investigates Crypto Firms for Misleading Ads
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Crypto Firms Under Investigation For Misleading Ads
Gruenwald didn't elaborate on the companies that were the focus of the inquiry or the circumstances that led to it. But this year in the U.S., the subject of dishonest advertising and promotion has become popular.
Kim Kardashian, a reality TV celebrity, was penalized by the Securities and Exchange Commission (SEC) of the United States in October for lauding on media platforms about the EthereumMax (EMAX) cryptocurrency token while concealing that she had received $250,000 in compensation to do so.
Mission of Federal Trade Commission
The Federal Trade Commission (FTC) was established as a free-standing American government organization with the mission of defending the general public against dishonest or unfair corporate practices.
They warned about a cryptocurrency scam earlier this year. It has three main elements: a fake user, a QR code, and a cryptocurrency ATM where the consumers would be instructed to transmit money. Additionally, they stated in a study dated June 6 that as much as $1 billion in cryptocurrency had been lost to fraudsters during the year. It had about 50% of all scams relating to cryptocurrencies in 2021 that came through social media sites.