John Reed Stark has tweeted to influencers to stop using social media to promote dubious crypto projects as they encourage market manipulation.
“Attention to all crypto promoters who use social networks to manipulate securities prices: fail at your own peril and risk. Your prosecution will be like fishing in a barrel,” Stark wrote.
According to Stark, cryptocurrency promoters are blatantly and arrogantly deceiving their audience, and they do it openly on the platforms of Twitter, Discord, Instagram and Reddit. However, cryptocurrency scams are always easy to find, archive, and then present to a judge or jury.
Therefore, it will not be difficult for SEC employees and agents of the Federal Bureau of Investigation (FBI) to bring crypto influencers to justice. Instead of conducting lengthy investigations and trips, Stark noted that regulators and law enforcement only need to turn on their computers to find clues.
The ex-SEC official said that the regulator is also closely monitoring traders. Whether they manipulate securities or cryptocurrencies, similar anti-fraud regulations apply to them.
“Social media helps the government. They have become a virtual rope on which crypto siblings can hang themselves,” Stark wrote.
Recall that last year the SEC accused the American actress Kim Kardashian of promoting the EthereumMax (EMAX) token. Kardashian agreed to pay a fine of $1.26 million. In March, the agency sued Justin Sun, the founder of the Tron project, accusing him of promoting “unregistered securities” – TRX and BTT tokens.
Source: Bits
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