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American stars who have used their name to promote digital assets are increasingly facing civil lawsuits from grassroots investors. The lawsuits contain a number of allegations, including violation of fair competition laws.
The details of the cases differ, but the general gist was outlined by representatives of the Securities and Exchange Commission in the United States. Under the US Securities Act of 1933, anyone who advertises an asset must publicly disclose that they have received a financial reward.
The SEC article states: “Celebrities use social media to encourage the public to buy certain assets. But their appeals are often misguided because they do not disclose their financial motives, being interested parties.
Recently, the SEC regulator has stepped up in the digital arena. In May 2022, the agency doubled its crypto division.
According to a report by consultancy firm Cornerstone Research, the organization imposed a record number of enforcement actions against crypto startups last year. A total of 30 enforcement actions were initiated, including 6 administrative proceedings and 24 lawsuits in federal courts.
Earlier, the editors of Crypto.ru informed that the British regulator FCA issued public warnings to large social networks so that they carefully monitor the observance of the interests of retail consumers.
The bottom line is that lately there has been a surge in specialized crypto bloggers promoting certain projects. For example, last year the department blocked 8,000 advertising companies in this area, which is 14% more than last year.
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