A U.S. company that probes allegations of misleading conduct confirmed on Monday that it had investigations open into a number of cryptocurrency corporations for “potential misconduct.” The Federal Commerce Fee spokesperson declined to call the corporations or say exactly what actions prompted the investigations.
“Whereas we are able to’t touch upon present occasions within the crypto markets or the main points of any ongoing investigations, we’re investigating a number of corporations for potential misconduct regarding digital belongings,” the spokesperson mentioned in a press release.
Bloomberg mentioned in a report that the investigation was linked to deceptive promoting however the FTC spokesperson declined to verify this. The spectacular implosion of FTX not too long ago despatched contemporary shock waves via the cryptocurrency trade, with the worth of bitcoin down sharply this yr.
The Securities and Alternate Fee, which additionally has rules mandating disclosures from people selling securities, has cracked down on superstar endorsements, together with actuality TV star Kim Kardashian on allegations of selling a crypto token on her Instagram account with out correct disclosure that she had been paid.
The FTC has additionally pursued corporations that offered themselves as cryptocurrency-related corporations however which have been allegedly nothing greater than scams.
Additionally Learn: Britain finalising plans for regulation of crypto trade – FT