Is that ‘Possible Misconduct’ in Cryptocurrency Advertising? FTC Investigates

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There is more news of recent investigations and charges involving people in the cryptocurrency world. The FTX cryptocurrency exchange recently collapsed. Its CEO, Sam Bankman-Fried, has been arrested in the Bahamas and charged by U.S. authorities with fraud. Celebrity endorsers of the exchange like Tom Brady and Steph Curry are getting caught up in the scandal as regulators have announced investigations into whether they violated securities laws.

The Federal Trade Commission recently announced that the FTX saga isn’t the only crypto investigation. It announced that it has launched an investigation against “several unnamed crypto firms” regarding alleged “deceptive or misleading crypto advertising.”

This issue (and the ongoing problems FTX, its CEO, and celebrity endorsers are facing) shows again that the cryptocurrency world is not the wild west and that regulations, whether they be Know-Your-Customer rules, securities regulations, laws regarding fraud or misleading advertising, or other rules, are being applied by regulators, sometimes even with criminal charges.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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