SEC Chairman Warns Influencers of Prosecution for Crypto Price Manipulation


The United States Securities and Exchange Commission (SEC) is cracking down on crypto influencers who promote scam projects and manipulate token prices on social media. John Reed Stark, former SEC chief, took to Twitter to warn such crypto influencers of the consequences they may face if caught.

In his tweet, Stark pointed out how social media is being used to manipulate the prices of exchange-listed securities, penny stock securities and crypto securities. He stressed that the same anti-fraud rules apply and that it is easier to detect and prosecute securities fraud due to the evidentiary trail left behind.

Stark mentioned the case of Francis Sabo, who was charged in a $100 million securities fraud case and used social media to manipulate exchange-traded stocks. Other crypto influencers who have violated securities law include Kim Kardashian, who was fined $1.26 million for promoting a scam project, and Bitboy Crypto, who was named in a $1 billion lawsuit for promoting unregistered securities. The SEC also issued multiple subpoenas to influencers for promoting Hex (HEX), Pulsechain (PLS) and PulseX (PLSX) tokens.

So, with the SEC taking a hard stance against crypto influencers, it is time to be aware of the consequences of promoting scam projects and manipulating token prices on social media.

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