Thursday, November 02, 2017

S.E.C. Warns Celebrities Endorsing Virtual Money - The New York Times

Fun while it lasted; also see Boom in Bitcoin and Ethereum brings surge in initial coin offerings (WikiTribune)

"The Securities and Exchange Commission took a first step on Wednesday to head off the recent trend of celebrities endorsing new virtual currencies, warning that they could be breaking laws.

Entrepreneurs have been issuing the digital currencies through so-called initial coin offerings, or I.C.O.s, which have become a hot but largely unregulated method of fund-raising for technology projects.

So far this year, some 270 projects have raised over $3 billion by selling new currencies to investors. The vast sums of money have drawn in celebrities, like the socialite Paris Hilton and the rapper the Game, who have promoted particular projects, generally in exchange for a payment of some sort."
S.E.C. Warns Celebrities Endorsing Virtual Money - The New York Times
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