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WASHINGTON (Reuters) – A U.S. company that probes allegations of misleading conduct confirmed on Monday that it had investigations open into a number of cryptocurrency companies for “doable misconduct.”
The Federal Commerce Fee spokesperson declined to call the companies or say exactly what actions prompted the investigations.
“Whereas we will not touch upon present occasions within the crypto markets or the main points of any ongoing investigations, we’re investigating a number of companies for doable misconduct regarding digital property,” the spokesperson stated in an announcement.
Bloomberg stated in a report that the investigation was linked to deceptive promoting however the FTC spokesperson declined to substantiate this.
The spectacular implosion of FTX just lately despatched recent shock waves by the cryptocurrency trade, with the worth of bitcoin down sharply this 12 months.
The Securities and Trade Fee, which additionally has rules mandating disclosures from people selling securities, has cracked down on movie star 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 firms that offered themselves as cryptocurrency-related companies however which had been allegedly nothing greater than scams.
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