Celebrities warned against ICOs endorsements

North America United States

Celebrity endorsements are “potentially unlawful” and in violation of federal securities laws, according to a statement from the U.S. Securities and Commission (SEC)

Endorsements are legally obliged to disclose both the source and the amount of compensation received for such and lack thereof constitutes a law violation.

“These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.” The SEC’s statement reads.

Amongst the celebrities who publicly endorsed ICOs are Floyd Mayweather, Jamie Foxx and Luis Suarez.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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