What do Jake Paul and Floyd Mayweather have in common? If you said “a fight” you’d be right—but not the kind you think. I’m Amy E. Feldman.
Who could have predicted that with virtually no oversight or regulation over the cryptocurrency market, unsophisticated investors who didn’t fully understand the risks could lose their shirts? Oh, right. Everyone. Which is why lawsuits now filed against those currencies don’t come as a surprise. But there are also a host of new lawsuits against the celebrity spokespeople who promoted the offerings, including Kim Kardashian, Jake Paul, Floyd Mayweather, and now, Elon Musk for their roles.
While it’s pretty rare for a celebrity endorser of a product to get sued for false advertising, cryptocurrencies, like stocks, are securities so when a celebrity encourages people to invest, they have the power to pump up the value, leaving investors really hurt when the price crashes. Like the unsuspecting investors, the celebrities might have asked a few more questions about their own personal risk.