The United States Securities and Exchange Commission (SEC) has warned of crypto phenomena promoting scam projects.
The SEC has followed up on crypto phenomena found to be promoting scam projects and manipulating the prices of certain assets via social media. former chairman of the SEC John Reed Stark , in a post on Twitter, warned that they should be ready to prosecute crypto influencers. In his post, Stark addressed crypto phenomena that support multiple crypto projects and help them manipulate market prices during the bull run.
Stark Cited Francis Sabo
Stark noted that the same anti-fraud rules apply to any price manipulation for the price of exchange-traded securities, stocks, or crypto securities.
The former SEC official pointed out that many social media phenomena defraud their victims in an arrogant and arrogant way. Stark noted that the nature of securities fraud makes it easy to detect and prosecute, unlike other types of fraud, where the perpetrator often tries to hide behind his or her identity.
The former president is accused in a $100 million securities fraud case and uses social media platforms to manipulate listed stocks. Francis SaboHe cited as an example.
Besides Sabo, there are numerous crypto phenomena found to be violating securities law. The most famous case is a $1.26 million fine for promoting a scam project. Kim Kardashianis .
Another major phenomenon facing the law is that it faced a lot of public backlash for promoting dubious projects. Bitboy Crypto had happened. The famous Youtuber faced a $1 billion lawsuit for promoting unregistered securities.
