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SEC: Social Media Influencers Who Promoted Crypto ICOs

 

The next wave of enforcement by the SEC, animated by its ongoing settlement with expert boxer Floyd Mayweather and music maker DJ Khaled, is relied upon to be via web-based networking media influencers who have elevated ICOs to the overall population.

The U.S. Securities and Exchange Commission (SEC) is effectively taking action against crypto initial coin offering (ICO) projects and the best official said not long ago that many cases are pending.

Cryptocurrency review platforms, Youtube, Celebrity, publications, and many more individuals and organizations could be targeted by the SEC if there’s sufficient evidence to prove that an individual or an organization received compensation from ICO organizers to promote a token sale, without disclosing the amount received from an ICO project to the target audience.

“Any superstar or another person who advances a virtual token or coin that is a security must unveil the nature, degree, and measure of pay got in return for the advancement,” the SEC said a year ago, underlining that the inability to reveal pay is viewed as a fake action.

On November 28, the SEC followed up on its previous statement and said that investors must be aware of celebrities promoting tokens on the blockchain. The commission said:

“Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements. Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds.”

 

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