Slashdot Mirror

← Back to Stories (view on slashdot.org)

SEC Warns Famous Crypto-currency Backers (bbc.com)

Posted by msmash on from the no-gaming dept.

A reader shares a report: Celebrities, sports figures and social media stars have been warned by US regulators about endorsing crypto-currencies. Paris Hilton, boxer Floyd Mayweather and others have all publicly backed digital currency funding drives. The Securities and Exchange Commission (SEC) said the endorsements could break laws on selling securities. Those promoting crypto-currencies must say if they are being paid for the endorsement, it said. In its official warning, the SEC pointed to the growing numbers of public figures who have talked about the funding drives, known as Initial Coin Offerings (ICOs), that crypto-currencies run to raise cash. About 270 separate crypto-cash start-ups have sought funds via ICOs in 2017, said the New York Times. In total, the ICOs have raised more than $3bn, it said. The SEC said any virtual coins or tokens bought by investors through an ICO were subject to the same laws governing the sale of stocks and shares sold via mainstream stock markets.

15 of 31 comments (clear)

  1. SEC fines are cost of doing business by turkeydance · · Score: 2

    say we're sorry, pay fine, no time served. reload.

  2. GOOD NEWS EVERYBODY! by Thud457 · · Score: 2, Funny

    "LydianCoin is haaawt..." /Paris Hilton

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  3. Would it better if they were paid in bitcoin? by mykepredko · · Score: 1

    A bit ironic perhaps, but they're not getting the investor's money.

    --
    Mimetics Inc. Twitter
  4. 270 separate crypto-cash start-ups? by fredrated · · Score: 5, Insightful

    Is it too late to start my own?

  5. I think they got it right on this one by BlueCoder · · Score: 1

    Just like any investment you need to really understand what your investing in and it's risks vs rewards. A new ecoin can just as easily be a ponzi scheme just as anything else. Celebrities endorsing such really is the same as them backing a stock.

    1. Re:I think they got it right on this one by youngone · · Score: 1

      I think everyone would be much better off if they took all of their investment decisions from Paris Hilton or Floyd Mayweather.
      According to people I know Paris Hilton must be really clever, because she's rich.

    2. Re:I think they got it right on this one by datavirtue · · Score: 1

      It is not a stock. It is not the same as them backing a stock. It is akin to them backing the Euro over the Dollar. This is going to get good.

      --
      I object to power without constructive purpose. --Spock
  6. ALL ABOARD... by Zorro · · Score: 1

    The Crazy Train!

    Destination Bubbleland followed by a devastating financial crash!

    1. Re:ALL ABOARD... by AlanBDee · · Score: 2

      Honestly, I hope so. There seems to be some sort of bubble or crash every 7-12 years. The market's been crazy, something's going to give and I can live with it being bitcoins.

  7. Re:Elon Musk? by Anonymous Coward · · Score: 1

    He did that years ago.

    Remember PayPal?

  8. Scott Adams (Dilbert) tokens by FeelGood314 · · Score: 4, Interesting

    Scott Adams does a good job explaining how these tokens work. http://blog.dilbert.com/2017/1...

    1. Re:Scott Adams (Dilbert) tokens by Anonymous Coward · · Score: 1

      Scott Adams does a good job explaining how these tokens work.

      http://blog.dilbert.com/2017/1...

      I admit I'm ignorant here and the explanation doesn't clear it up for me. I don't understand why blockchain is such a big deal - can someone explain it?

      The only benefit it seems to offer is decentralization of authority. Is Joe SixPack really going to suddenly buy products and services that he normally wouldn't because the transactions are verified by a decentralized computing network? The only examples that make sense to me are avoiding money-transfer fees and black markets.

    2. Re:Scott Adams (Dilbert) tokens by Anonymous Coward · · Score: 1

      This is a fucking infomercial for some cryptocoin that douchenozzle is promoting.

  9. Source of advice. by Kaenneth · · Score: 3, Funny

    If you take financial advice from someone who's job is to take repeated blows to the head, you're a fucking idiot.

    1. Re:Source of advice. by datavirtue · · Score: 1

      This is good shit.

      --
      I object to power without constructive purpose. --Spock