Main navigation

Crypto Influencers Promoting NFT Scams Could Face Class-Action Lawsuit After Bitconnect Case

Wed, 03/02/2022 - 10:33
article image
Arman Shirinyan
You could become part of a class-action lawsuit if you are a victim of an NFT or crypto influencer
Crypto Influencers Promoting NFT Scams Could Face Class-Action Lawsuit After Bitconnect Case
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Cryptocurrency and blockchain sleuth zachxbt, who previously found out the real identity of the co-founder of WonderlandDAO, has shared instructions on how not to get into scammy NFT projects that are filling the industry and added that crypto influencers promoting scams could face a class action lawsuit following the Bitconnect case.

The main basis of a class-action lawsuit would be the fact that most crypto and NFT influencers are not adding any disclaimers to their posts, hence promoting various projects as investment opportunities or their own businesses.

According to U.S. laws, individuals can promote or offer investment opportunities, especially since the majority of promoted projects tend to rugpull on their users, steal their funds and drop further development after collecting funds.

In the perfect scenario, influencers must disclose that they have a financial or personal connection to the project. The absence of such a disclosure is considered illegal in a lot of countries, according to zachxbt.

Floki Inu Ads Banned by British Watchdog

Unfortunately, there were no large cases in the practice of the U.S. or European courts regarding the illegal promotion of NFT projects that later rugpulled on their users or completely dropped the development of the ecosystem.

In the end, zachxbt added that giveaways in exchange for a whitelist or the right to buy tokens are also among the many ways NFT influencers attract users to shady projects that will most likely rugpull later on and cause massive losses for early investors. For taking all of the above mentioned actions, both influencers and project owners could be held liable.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.

m class="card__subscribe-form" method="post" action="#" id="subscribe">