The US regulator SEC has recently increased its pressure on the cryptocurrency industry.
In this context, while the SEC, which has sued many altcoin projects and stock markets, continues to maintain its pressure, former SEC official John Reed also targeted social media phenomena that promote crypto money.
Making a statement on this issue on Twitter, John Reed warned social media phenomena promoting cryptocurrencies and manipulating their prices.
Noting that the days of these social media phenomena are numbered, the former SEC official said that these phenomena will face anti-fraud rules that apply to those who manipulate the price of securities listed on crypto exchanges.
Pointing out that cryptocurrencies are securities, Reed said:
“Attention to all crypto supporters who use social media to manipulate the price of cryptocurrencies:
Do not fail, do not put yourself in danger. Eventually, you will not only be caught, but prosecuted.
The same anti-fraud rules apply to those who manipulate the price of exchange-traded securities, micro-capital securities, penny securities, or crypto securities.
Get smart coins, because your days are numbered.
What amazes me most about crypto supporters in particular is that many of them follow an arrogant and arrogant way, in which they always defraud their victims.
… At this point, social media has become a virtual rope that many crypto investors use to hang themselves, far from tying their hands to the government.”
John Reed cited the Ricky Bobby case, where the SEC filed Francis Sabo (known as Ricky Bobby) for a $100 million securities fraud charge.
Attention all crypto promoters who use social media to manipulate the price of crypto-securities: Fail not at your peril. Not only will you eventually get caught, but your prosecution will also be like shooting fish in a barrel.
Whether manipulating the price of exchange… pic.twitter.com/AfKROIlR0N
— John Reed Stark (@JohnReedStark) May 30, 2023
