Crypto Firms Liable of Investigation For Misleading Advertisement

Crypto.com is under special surveillance.

Nowadays, it is seen that the craze of advertisement in the crypto sector is becoming quite popular, and crypto firms are continuously investing thousands of dollars in the advertisement of their firms.

According to recent news, the consumer protection agency said it was examining several firms. In a recent interview with Bloomberg, Juliana Gruenwald, FTC spokeswoman, noted, “We are investigating several firms for possible misconduct concerning digital assets.”

Although Juliana refused to provide further details about the specific organizations or companies being invested under these circumstances.

The FTC upholds advertising and disclosure laws from individuals who have been paid to endorse a product or service.

Some reliable reports state that crypto firms have invested thousands of millions in their advertising in 2021 and 2022. Still, it is not clear what the exact tenure and amount invested in the advertising.

Crypto.Com Active Investment in Sports Industry

The globally popular crypto exchanges headquartered in Singapore are among the top thirty crypto exchanges worldwide. As per data, Crypto.com have sponsored the ongoing FIFA World Cup 2022, which is being played in Qatar.

According to reports, TheCoinRepublic, on February 9, 2022, announced its partnership with the Miami Formula 1 Grand Prix 2022. The championship was scheduled on May 6-8, 2022.

Crypto.com, the popular crypto platform, has expanded its sports partnership and has announced its collaboration with Formula 1 for the Miami Grand Prix.

How FTX Collapse Brought Its Sponsorship In LimeLight

The ICC men’s cricket world cup in the second quarter of 2022 was sponsored by FTX. More than dozens of international sports events in the last 18 months were funded and sponsored by FTX, including F1 racing, Basketball tournament.

In 2021, FTX exchanges signed a deal with Miami Heat for 19 years, and the sponsorship was valued at $135 million. The first payment installment was completed by paying $14 million, and FTX was supposed to pay $5.5 million in the upcoming year.

It is important to note that Miami Heat announced that it had cut ties with FTX Exchange.

Mercedes recently canceled the sponsorship deal with the FTX crypto exchange after its crash and bankruptcy filing, and ICC also dropped the deal with the bankrupt crypto exchange.

In an interview with sportsnews, the outlet spokesperson of Mercedes noted that “As a first step, we have suspended our partnership agreement with FTX. The company will no longer appear on our race car and other branded assets.”

An interview with a news outlet spokesperson of ICC noted, “The ICC’s partnership with FTX is under review until there is greater clarity over the future of the company.”

SEC Aggressive About Crypto Advertisement

The Security and Exchange Commission is actively watching and tracking unwanted advertisement of Cryptocurrencies, and the Collapse of FTX have allowed the regulators to act harshly on such issues.

The Securities and Exchange Commission (SEC) charged Kim Kardashian with illegally selling ‘crypto asset security.’ The official press release of the financial watchdog claimed that Kardashian ‘failed to disclose that she was paid $250,000 to publish EMAX, the token offered by EthereumMax.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing