Storyboard18 | Can crypto ads land celebrities in legal trouble?

moneycontrol.com:

Cryptocurrency platforms hit the headlines worldwide as CNBC reported that reality TV star Kim Kardashian and boxing legend Floyd Mayweather are being sued over allegations that they misled investors when promoting a little-known cryptocurrency called EthereumMax to their millions of social media followers.

The class-action lawsuit filed in the U.S. District Court for the Central District of California accuses EthereumMax and its celebrity promoters of working together to artificially inflate the price of the token by making “false or misleading statements” in social media posts.

Kardashian included the hashtag #ad in the message, suggesting she was paid to promote it. Meanwhile, Mayweather endorsed the token in his boxing match with YouTube star Logan Paul. EthereumMax was accepted as payment for tickets to the event, a move the lawsuit claims boosted trading volumes sharply.

Also read: UK warns on cryptocurrency ads after Kim Kardashian's post

The development brings to the fore the big challenge associated with the novel cryptocurrency space which remains highly unregulated in several markets, including India.

Here, too, cryptocurrency platforms are being heavily promoted by big Bollywood celebrities, sports stars and social media influencers. Despite high volatility and lack of government regulation associated with cryptocurrency, its exchanges are thriving. Flush with investor funds, crypto startups are pumping big money into advertising to attract users.

Also read: Spain introduces new rules for crypto influencers

Who are the Indian celebrities promoting crypto?

Some of the known celebrities who have promoted cryptocurrencies and platforms on Instagram, YouTube, and Twitter include musicians Badshah and Harrdy Sindhu, poet