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Abstract:According to Yahoo Financial, a couple of financial YouTubers are being chased hard for more than $ 1 billion by victims who suffer from the scam of collapsed FTX.
According to Yahoo Financial, a couple of financial YouTubers are being chased hard for more than $ 1 billion by victims who suffer from the scam of collapsed FTX.
The new class action lawsuit alleges that several well-known finance YouTubers, including Graham Stephan, Andrei Jikh, Jaspreet Singh, and others, should be held accountable for promoting the cryptocurrency exchange FTX.
According to Federal Trade Commission (FTC) guidelines for social media influencers, creators must clearly disclose when they are being paid to promote a product.
“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments, and compensation, nor conduct adequate (if any) due diligence,” the lawsuit reads.
The lawsuit also alleges that the YouTubers took part in a civil conspiracy with FTX and misled customers “with the false impression that any cryptocurrency assets held on the FTX Platform were safe and were not being invested in unregistered securities.”
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