Former SEC Chief Warns Influencers for Price Manipulation
Former SEC chief John Reed Stark has issued a warning to crypto influencers, cautioning them about potential prosecution for their involvement in crypto price manipulation and promotion of scam projects.
Stark took to Twitter to express his concerns and advised influencers to be prepared to face legal consequences. It is essential for influencers and individuals involved in the promotion of cryptocurrencies to adhere to legal and ethical standards to avoid potential legal repercussions.
In a tweet, John Reed Stark, former SEC chief, criticized social media crypto influencers for promoting dubious crypto projects and aiding in market price manipulation, particularly during bullish periods. Stark emphasized that the anti-fraud rules applicable to traditional securities, such as exchange-listed securities and penny stocks, also extend to crypto securities. He further warned that the era of social media crypto influencers is approaching its end, indicating a potential crackdown on these practices.
Attention all crypto promoters who use social media to manipulate the price of crypto-securities: Fail not at your peril. Not only will you eventually get caught, but your prosecution will also be like shooting fish in a barrel.
Whether manipulating the price of exchange… pic.twitter.com/AfKROIlR0N
— John Reed Stark (@JohnReedStark) May 30, 2023
