John Reed Stark, former director of the US Securities and Exchange Commission (SEC), issued a scathing warning to influencers in the cryptocurrency market.
Through his Twitter account, Stark warned that they should be careful about their actions and practices as legal ramifications could be inevitable.
“Attention to all cryptocurrency promoters who use social media to manipulate the price of crypto assets: not only will you get caught, but the charges against you will be like throwing fish in a barrel”wrote Stark in his tweet.
Stark pointed out that the anti-fraud rules apply to both the manipulation of securities on exchanges and cryptocurrencies. He stressed that influencers should be aware that using fraudulent strategies to manipulate prices will not go unnoticed by regulatory authorities.
Attention all crypto promoters using social media to manipulate the price of crypto securities: don’t fail at your peril. Not only will you eventually get caught, but your pursuit will be like shooting a fish in a barrel.
Whether it’s manipulating the exchange price… pic.twitter.com/AfKROIlR0N
— John ReedStark (@JohnReedStark) May 30, 2023
Cryptocurrency Influencers Targeted by the SEC
The former SEC director pointed out that unlike hackers who act covertly and try to break into systems, cryptocurrency promoters are easy to trace.
Their fraudulent activities can be easily traced on social media such as Twitter, Discord, Instagram and Reddit. Such evidence can easily be presented in a court of law to prove the fraud committed.
Stark emphasized that the social media era has become a virtual rope from which many cryptocurrency promoters hang themselves. He warned those involved in such illegal activities that their days of impunity are numbered.
The SEC and other regulatory agencies have shown increasing interest in investigating and prosecuting those who use social media to manipulate cryptocurrency prices and mislead investors.
The SEC’s recent lawsuit against Francis Sabo, known as “Ricky Bobby,” for a $100 million fraud scheme is an example of this.
According to the SEC, Sabo portrayed himself as a trusted stock-picking guru and cultivated a large following on the Atlas Trading forum on Discord, a free online space that purported to provide educational content about trading and the securities markets.
Cryptocurrency influencers have their days numbered
John Reed Stark’s warning also underscored the fact that many cryptocurrency promoters are acting boldly and arrogantly, publicly and ostensibly misleading their victims. Whether on Twitter or other social media platforms, fraud is easy to identify and present to a judge.
It is important for influencers in the cryptocurrency market to be aware of the applicable laws and regulations and to avoid fraudulent practices.
Transparency and honesty are essential to maintain investor confidence and foster a healthy environment for the growth and development of the cryptocurrency market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
