FTC Targets Crypto Businesses Over Misleading Marketing
iHodl.com
Main page News, US Market, Crypto Market, Regulations

The US Federal Trade Commission is probing crypto businesses to find out if they had violated law by promoting services through deceptive or misleading advertisements.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

FTC spokeswoman, Juliana Gruenwald Henderson, told Bloomberg in a commentary that the commission is investigating "several firms for possible misconduct concerning digital assets," without naming them.

The move comes as FTX's collapse affected dozens of cryptocurrency businesses in the US such as Genesis, Gemini, BlockFi (went bankrupt) and many others.

US Watchdogs Probe 3AC Over Potential Rules Violation: Report

Other companies are leaving the US due to vague regulatory framework. For instance, Nexo, a European crypto lending firm, has recently announced it would leave the US market following 18 months period of dialogue with US state and federal regulators.

Nexo noted that despite "inconsistent and changing positions" among state and federal regulators, the company tried to provide all the requested information and to adjust its business in response to their concerns.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error
Close