SEC’s next move: Social media influencers who promote crypto ICOs

posted 11 days ago
The SEC is actively cracking down on crypto ICO projects, and a top official said earlier this year that dozens of cases are pending. The next wave of enforcement by the SEC was stimulated by its recent settlement with professional boxer Floyd Mayweather and music producer DJ Khaled, and is expected to be targeting social media influencers who promote ICOs to the general public.

The SEC is looking for sufficient evidence to prove that an individual or an organization received compensation from ICO organizers to promote a token sale, without disclosing the amount received from an ICO project to the target audience. “Any celebrity or other individual who promotes a virtual token or coin that is a security must disclose the nature, scope, and amount of compensation received in exchange for the promotion.” The penalty is twice as large as the compensation itself, as seen in the case of Floyd Mayweather who paid $600,000 for receiving $300,000 to promote 3 ICOs.
Tags: opinion, bitcoin, news