Various crypto exchanges have come under the scrutiny of the U.S. trade regulator, the Federal Trade Commission (FTC). The accusations are not known. Presumably, they are accused of misleading advertising.
The exact allegations are not yet known. Also on inquiry of Bloomberg the FTC did not comment so far. It is only known that “possible conduct in digital investments” should be the reason for the investigation. Presumably, this means misleading advertising. In the context of the crypto boom, numerous crypto exchanges had spent enormous advertising sums to cooperate with influencers and become visible to the general public. It was not uncommon for influencers to give indirect investment tips in the process. In addition, there is the fact that crypto investments in advertising were often presented in a highly playful manner, which could also have a misleading effect – after all, real money is used in the end.
Crypto exchanges in the public spotlight
Crypto exchanges have most recently come into the public spotlight due to the bankruptcy of FTX. The crypto exchange, one of the largest in the world, had hit the headlines because the self-control mechanisms in the company had not worked. Deposits of around ten billion US dollars are said to have been embezzled and, after the insolvency became known, one billion US dollars were taken from the platform in unauthorized transactions. Customers who had invested through FTX therefore lost billions of dollars of their money. As a result, there were calls for stronger regulation of crypto exchanges. Most cryptocurrencies have suffered severe price losses in recent months, presumably also due to the changed public image.