SEC Ex-Chief warns crypto influencers against price manipulation

The US Securities and Exchange Commission (SEC) is intensifying its efforts to regulate and ensure compliance among crypto influencers. Former SEC Chief John Reed Stark has issued a stern warning about potential prosecutions. In a Twitter post, Stark cautioned social media personalities in the crypto space who have endorsed dubious projects and engaged in price manipulation in the past, assuring them that their end is near. According to Stark, the days of social media crypto influencers operating without accountability are coming to an end. He emphasized that the same anti-fraud regulations apply to all forms of price manipulation, including crypto assets.

Stark hinted that influencers adopt various strategies to deceive and mislead their followers into making uncalculated investment decisions. He further noted that these personalities use social media platforms such as Twitter, Discord, Instagram, and Reddit to perpetrate the scams, leveraging the popularity of the platforms to lure their victims. Unlike other scams, securities fraud could easily be detected, and wrongdoers cannot hide their trails from authorities.

Stark cited the case of notorious crypto advocate Francis Sabo, who recently faced charges in a $100 million securities fraud case. Sabo purchased some stocks and convinced his followers to buy the same tokens. The SEC had previously indicted other crypto influencers and celebrities violating securities laws. Last year, the regulator fined billionaire celebrity Kim Kardashian $1.26 million for endorsing a fraudulent crypto project called EthereumMax (EMAX). Other celebrities, such as Floyd Mayweather, were involved with the project. Just recently, Bitboy Crypto, an influencer who has faced public criticism for promoting questionable crypto projects in the past, was named in a $1 billion lawsuit for endorsing unregistered securities.

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