Investors Sue Crypto Influencer BitBoy For Promoting FTX

A new class-action lawsuit alleges influencers, including BitBoy, promoted FTX without disclosing compensation. Lawsuit also alleges the defendants replaced YouTube clips promoting former FTX CEO Sam Bankman-Fried with videos apologizing for their endorsements

Highlights

• A new class-action lawsuit alleges crypto influencers, including Ben Armstrong, aka BitBoy, promoted FTX without disclosing compensation.
• The lawsuit also alleges the defendants replaced YouTube clips promoting former FTX CEO Sam Bankman-Fried with videos apologizing for their endorsements of both the exchange and the former CEO.
• The Securities and Exchange Commission has well-worn rules that compel securities promoters to disclose conflicts of interest.
• In the U.S., influencers often try to evade disclosures by arguing that the assets they promote are not securities, opined a partner at law firm Lowenstein Sandler LLP.
• Several FTX promotional contracts have been altered or terminated since the exchange’s bankruptcy.

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