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The U.S. Federal Trade Commission (FTC) has banned fake reviews and recommendations. What does this mean for crypto?
Social Media Investment Scams Continue to Grow
Recently, the FTC has observed a significant rise in social media investment scams, particularly in the cryptocurrency sector. These scams often involve fake messages that promise guaranteed high returns with minimal risk.
Andrew Raio, an FTC consumer education specialist, highlighted that scammers are increasingly targeting social media users with fraudulent investment opportunities, especially in crypto:
If you reply, the scammer will say they’ve made lots of money investing in Bitcoin or another cryptocurrency. And they can get you a unique opportunity that guarantees significant returns with little or no risk. But these are all lies designed to convince you and get your money.
Victims are often directed to fake investment sites or apps where their investment accounts appear profitable. However, once the scammer has extracted as much money as possible, they disappear, leaving the victim with nothing.
Crypto Romance Scams
The FTC has also issued warnings about cryptocurrency scammers who offer investment advice under the guise of romantic partners. These scammers build emotional connections with their victims, making them more likely to believe the scammers are cryptocurrency investment experts.
The scam typically starts with unsolicited social media contact. The scammer studies the victim’s profile to establish trust and connection. Once a relationship is formed, the conversation shifts to investments, with the scammer claiming their top priority is the victim’s financial security.
More Restrictions for the Crypto Sphere
Besides crypto influencers, U.S. authorities have also scrutinized betting platforms. In August, the U.S. Congress urged the Commodity Futures Trading Commission (CFTC) to ban political bets, noting that such mechanisms could influence the outcome of the U.S. presidential election.
Five senators and three House of Representatives members sent an open letter to CFTC Chairman Rostin Benham, stating that such mechanisms could undermine public confidence in the electoral system.
The initiative also targets the Polymarket betting platform, where crypto community members guess the presidential election’s outcome. According to the latest data, the bet volume has exceeded $606 million. Vice President Kamala Harris leads with a 53% chance of winning, while 44% of bettors believe in former President Donald Trump’s triumph.
The total political section on the platform exceeds $1 billion, with participants betting on hundreds of events.
U.S. Politicians and Cryptocurrencies
Despite individual regulators’ and government officials’ statements, U.S. politicians have shown increased interest in cryptocurrencies ahead of the presidential elections. Notably, Trump, who in 2018 instructed the U.S. Treasury to end Bitcoin, and in 2021, called it a fraud and asked for industry regulation.
Although Democrats have not explicitly stated their support for digital assets, they have not recently called for increased regulation or a ban. Furthermore, with approval from above, the Securities and Exchange Commission (SEC) might have approved the necessary documents to list the Ethereum ETF.
It is evident that American politicians have adopted a more favorable attitude towards cryptocurrency.
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