As per reports, the US SEC has issued subpoenas to influencers behind the promotion of crypto projects including Pulsechain, HEX, and PulseX.
The US Securities and Exchange Commission (SEC) is going hard after social media influencers who have been going hard with the promotion of risky and unvetted digital tokens. Amid its recent crackdown, the US SEC issued subpoenas to influencers behind the promotion of cryptocurrencies such as Pulsechain, HEX, and PulseX.
SEC Is Investigating the Cases of Influencers Promoting Crypto Projects
Eric Wall, a Swedish researcher shared an official letter from the SEC dated November 1 earlier this month. In its address to the influencer, the US SEC wrote:
“We believe that you may possess documents and data that are relevant to an ongoing investigation being conducted by the staff of the United States Securities and Exchange Commission.”
This letter by the SEC has been accompanied by a subpoena that has been issued as part of the investigation. The letter demands the influencers in question to produce the required documents before the 15th of November.
In his recent tweet, Eric Wall noted:
“GUYS. IT’S HAPPENING. Hexicans influencers are getting subpoenad by the SEC over HEX, PulseChain and PulseX. The HEX information channels are filled with information about how to shred your digital evidence”.
HEX Community Members Retaliate
Commenting on the development, the HEX community members retaliated Eric Wall’s findings calling it “fake news”. Wall, however, responded stating that the HEX information channels on Telegram and Discord have been filled with information on preserving the anonymity of discussions and data.
Responding to those who claimed that the subpoenas are fake, Eric Wall stated: “Hexicans: time to post the unblurred versions here. If they’re fake—no harm right?”
Wall further said that he’s not speaking on behalf of the SEC. Instead, he’s just sharing the information that is available. Last month in October, the SEC issued a subpoena to Amrican socialite Kim Kardashian for unlawfully promoting crypto security tokens.
The SEC asked Kardashian to pay $1.26 million in penalties, disgorgement, and interest for the social media promotion of crypto security offered by EthereumMax. The SEC said that Kardashian failed to disclose that she has been paid $250,000 to publish a post on her Instagram about the EMAX tokens.
Furthermore, Kardashian’s post had a link to the EthereumMax website that offered information for purchasing EMAX tokens. Speaking on it, SEC Chair Gary Gensler said that “this case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” added he.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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