So-called influencers Kim Kardashian and Floyd Mayweather Jr. have promoted investments in crypto assets among their followers. Cheated victims are now demanding compensation from the two celebrities for the losses they suffered. Speculations in cryptocurrencies are essentially based on the same principle as the pyramid games that flourished before the Internet era.
Anyone who invests money must hope that more will be invested by other people in the future. Because this is the only way to increase the value of the digital units. In the case of smaller crypto projects in particular, a break in this chain has the effect that investors lose almost everything. In order for the funds to flow further, the drum of advertising must of course be properly stirred to develop new target groups. The above-mentioned people – who became known as reality TV stars or boxing champions – advertised investments in EthereumMax, for example.
Regulators give submission
As in various other cases, investors simply lost most of the money they had invested. Several victims of the crypto scams are now trying to claim damages not only from the providers of the digital currency units. They also filed a lawsuit against the two influencers in a US federal court in Los Angeles and want to get them to be held accountable for their advertising campaign, which they themselves earned, reports the Financial Post.
The plaintiffs rely on earlier assessments by several regulatory authorities. Mayweather, for example, has already been penalized by the US Securities and Exchange Commission for promoting Kypto investments without disclosing that he was paid for them. Kardashian received a rogue from UK financial regulators last year for telling her Instagram followers that they could get rich quick on the crypto bubble. Infographic Bitcoin, and Ethereum, three trillion US dollars in cryptocurrency.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.