The Federal Trade Commission (FTC) has reportedly opened an investigation into a few cryptocurrency-related entities for potential misconduct. The FTC has declined to disclose the names of the companies or the specific activities that led to the inquiry.
In a statement, a spokesperson said: “While we cannot comment on current events in the crypto markets or details of ongoing investigations, we are looking into several firms for possible misdeeds related to digital assets.”
As per the Bloomberg report, the investigation is related to false advertising, although the FTC spokesperson declined to comment. The collapse of FTX earlier this year triggered a sharp drop in the value of Bitcoin.
Apart from the FTC, the Securities and Exchange Commission (SEC) has also imposed rules that require disclosures from people who promote securities. Recently, the SEC filed a charge against Kim Kardashian for promoting a crypto-token on her Instagram account without revealing how much she was paid for it.
Furthermore, the FTC has taken action against companies that falsely presented themselves as cryptocurrency firms but were actually nothing more than scams.
(Reporting By Diane Bartz; Additional reporting by Anirban Chakroborti In Bengaluru; Editing By Stephen Coates)
