Social media criticised for misleading crypto ads

A top European consumer group has filed complaints against Facebook, Twitter, TikTok and Instagram for not making users aware of crypto trading risks

Social media platforms have come under fire from an influential consumer group over the
proliferation of misleading crypto ads.

The European Consumer Organization, BEUC, filed a complaint with the European
Commission and consumer authorities for ‘allowing misleading advertisements of crypto
assets to multiply’ on platforms like TikTok, Facebook, Twitter and Instagram.

The complaint said a minority of consumers are fully aware of the risks they are taking and
that advertisers and influencers promoting crypto products on the platforms are not clearly
disclosing them.

Monique Goyen, BEUC Director General said: “Consumers are increasingly being promised
‘get rich quick’ investments by ads and influencers on social media.”

A class-action lawsuit from investors of EthereumMax recently included Kim Kardashian and
Floyd Mayweather as well as a number of other celebrities for their role in misleading
investors, promoting a “pump and dump” scheme.

Kardashian was fined for EthereumMax promotions on social media without disclosing she
was paid $250,000 to promote the token, resulting in a $1.26m settlement with the US
Securities and Exchange Commission (SEC).

Former NBA star Shaquille O’Neal was served with a lawsuit in April over his links with
collapsed crypto exchange FTX after hiding in his home for months to avoid being served

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.