Why are crypto endorsement getting celebrities in trouble, and what does India think about it?


In the last few years there has been a lot of hype about cryptocurrencies. Social media, music videos, and interviews have been used by Hollywood and TV stars to promote their virtual assets. In recent months, some of these celebrities have gotten into legal trouble.

Most notably, Kim Kardashian and Floyd Mayweather were both served with class action suits for promoting the cryptocurrency EthereumMax (EMAX). More recently, Justin Bieber, The Weekend, Post Malone, Madonna, and several other famous people were named in a class action lawsuit against the creators of the Bored Ape Yacht Club (BAYC) NFTs.
Why are so many celebrities getting in trouble with crypto endorsement all of a sudden, and what does India think about it? Come with us to find out.

Celebrities supporting crypto endorsement

Since then, the EMAX project has failed, and the people who put money into it have been left holding the bag. This is how a pump and dump scam works. People rush to invest in a project because it is promoted by well-known celebrities. These investments drive up the value of the cryptocurrency. But all of a sudden, the people who thought up the plan sold out, took the money, and left.
Joining Justin Bieber and others at the suit. It says that the people who made the BAYC used celebrities to “artificially” boost the value of its NFTs, which caused buyers to suffer “staggering losses.” The lawsuit also names as defendants Serena Williams, Stephen Curry, Snoop Dogg, Future, Diplo, Gwyneth Paltrow, Kevin Hart, and others.
In the class action lawsuit against FTX, more than one name has come up. FTX ads featured Shaquille O’Neal, Gisele Bundchen, Naomi Osaka, Stephen Curry, Larry David, and Tom Brady. In one of these ads, NBA star Steph Curry says he is not a crypto expert but that FTX has his back.Everyone knows how things turned out.

Also Read: The Final Price Of Crypto Could Be Zero.

Why are celebrities criticized for crypto endorsement

The SEC said Kim Kardashian broke the Securities Act’s touting rule by not disclosing that she was paid $250,000 to promote Ethereum Max, an unregistered security.
That’s advertising, right? Why are celebrities criticized for endorsing crypto? Product is key. The SEC monitors crypto investments like Ethereum Max in the US. Kardashian failed to disclose that EthereumMax paid her $250,000 to “tout” the token, per SEC rules.

Investors in the BAYC claim that celebrities lied and omitted facts to get them to invest.
“The fake celebrity endorsements and misleading advertising about the launch of an entire BAYC ecosystem (the so-called Otherside metaverse) were able to artificially increase interest in and the price of BAYC NFTs during the Relevant Period, causing investors to buy these losing investments at much higher prices,” the lawsuit states.

How India feels about celebrities endorsing crypto

Last year, Indian crypto exchanges promoted their brands with Bollywood stars. Ayushmann Khurrana, Ranveer Singh, Disha Patani, Anupam Kher, and others promoted Indian crypto exchanges CoinDCX, CoinSwitch Kuber, Bitbns, and others on national TV and social media.
The Advertising Standards Council of India (ASCI), a 1985-founded self-regulatory group, found that investors were comparing gold and cryptocurrency returns. Thus, in May 2022, India’s capital markets regulator, SEBI, proposed that celebrities not promote cryptocurrencies.


Just like every other citizen, celebrities have moral responsibilities to society. Even more so because their fans and the community love and support them. It gives them a little more status in society. Many people are influenced by them, and some even try to be like them and take on their traits.
So, when celebrities promote a crypto service or product, it’s important to point out the financial risks that come with these assets. If not, it could confuse people and be against the law.

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