Cryptocurrency advertising in the United States is under investigation for possible wrongdoing

The US Federal Trade Commission (FTC) is targeting some crypto companies for misleading or deceptive advertising. With the latest move, the FTC appears to be following in the SEC’s footsteps as the crackdown on the ecosystem widens.

According to a Bloomberg report, FTC spokeswoman Julianna Gruenwald Henderson said:

“We are investigating several companies for possible wrongdoing related to digital assets.”

  • However, Henderson refused to provide more information about which companies the authorities were targeting.
  • The official FTC website states, “By law, claims in advertisements must be truthful, must not be misleading or unfair, and must be evidence-based. For certain specialty products or services, additional rules may apply.”
  • The agency essentially enforces laws that require truth in advertising, including rules that individuals disclose when they are paid for endorsements or reviews.
  • Several high-profile influencers, such as Kim Kardashian, have reportedly flouted FTC standards in the past.
  • While the FTC has not been strict in most cases, the SEC on the other hand has been at war with everything to do with the crypto-asset industry.
  • In fact, the American socialite was fined $1 million by the US Securities and Exchange Commission (SEC) in a crypto fraud campaign case.
  • During the bull of 2021, many crypto companies poured money lavishly into advertisements in an attempt to attract new investors. Many distinguished celebrities such as Hollywood actor Matt Damon, sports star LeBron James, and Shaquille O’Neal.
  • This summer, the Advertising Standards Council of India (ASCI) detected more than 400 crypto ads potentially violating the Virtual Digital Assets (VDA) Advertising and Promotion Guidelines and Influencer Advertising Guidelines.
  • The UK’s Financial Conduct Authority (FCA) has also launched an investigation against companies for misleading crypto advertising.

The post US Cryptocurrency Under Scanner advertisement about possible wrongdoing appeared first on CryptoPotato.

Leave a Reply

Your email address will not be published. Required fields are marked *