$1 billion lawsuit against YouTube influencers who promoted FTX

The influencers failed to disclose the compensation they received for promoting the now-bankrupt crypto exchange.

A class-action lawsuit has named famous finance influencers on YouTube for their role in promoting cryptocurrency exchange FTX and sued them for $1 billion in damages,

reported. Founded by Sam Bankman-Fried , FTX was one of the most popular crypto exchanges in the world before it filed for bankruptcy in November last year.Social media influencers are people who promote products to their large number of followers, creating an impression that they themselves have used the product and trust it. However, it is common practice for influencers to promote products after receiving a fee from their promoters, which they may not necessarily disclose to their audience.

According to the Securities and Exchange Commission in the U.S., the securities laws apply to cryptocurrencies even though many in the cryptocurrency industry have argued against it. Including cryptocurrency as securities attract intense standards for their advertisement, something that the plaintiffs are hoping for as they seek $1 billion in damages.

If the FTX accounts are considered securities, the YouTubers could be liable for not sharing how much FTX paid them. As per a previous

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

IntEngineering /  🏆 287. in US

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Network of YouTube financial influencers hit with class action suit for pumping up FTXThe group of finance gurus are accused of leading viewers into ruin by uncritically praising FTX in exchange for cash.
Read more »

Police take down ChipMixer service tied to stolen crypto from FTX, Axie Infinity hacksAuthorities seized $46 million in cryptocurrency.
Read more »

1 year after $11M LUNC bets; Do Kwon wanted, funds paid, hedge stuck on FTXOne year later, Do Kwon has lost $11 million on the bet, Terra Luna has collapsed, with Kwon currently on the run from authorities in Serbia.
Read more »

FTX Paid Around $2.2B to Sam Bankman-Fried, New Management SaysBankrupt cryptocurrency exchange FTX_Official transferred $2.2 billion to founder SBF_FTX through various entities, the company's new management said. By JamieCrawleyCD
Read more »