The United States Federal Trade Commission (FTC) is allegedly investigating "various" cryptocurrency companies.
The agency, which enforces laws requiring truth in advertising, is investigating whether the companies posted misleading or misleading ads, Bloomberg said. reported Monday (December 5).
“We are investigating several companies for possible misconduct with respect to digital assets,” an FTC spokesperson said, declining to provide further details, according to the report.
The FTC did not immediately respond to PYMNTS's request for comment.
This news comes about two weeks after Bloomberg reported that celebrities who backed the now-bankrupt cryptocurrency exchange FTX were facing at least three litigation of people trying to recover their losses.
The celebrities who promoted the firm could be held liable for damages if the lawsuits continue, especially if those products are found to be securities.
The lawsuits alleged that these sponsorships attracted unsophisticated investors.
About two months before that, Kim Kardashian agreed to pay a $1.26 million fine in a case involving her.promoting” of the EthereumMax cryptocurrency, which the Securities and Exchange Commission (SEC) says is a security under its jurisdiction, without properly disclosing that it had received financial compensation for doing so.
The SEC has filed several similar cases over other cryptocurrency offerings dating back to 2018, including a case against Floyd Mayweather Jr. and DJ Khaled, and one against Steven Seagal, all of whom settled.
In February, the Wall Street Journal reported that numerous cryptocurrency exchanges had been paying large amounts of money to post ads during the Super Bowl, which remains one of the most expensive advertising spots on television.
Sponsorship consultancy IEG said at the time that crypto industry spending on sports sponsorships could amount to more than $160 million for North American companies, more than the amount spent by airlines, quick-service restaurants, and wine and beverage companies. liquors.
For all the crypto coverage of PYMNTS, subscribe to the daily crypto newsletter.
How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns stop other customers. For "How We Pay Digitally: Editing Stored Credentials," a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to explore the consumer dilemma and reveal how merchants can beat holdouts.
