Experts and Non-Experts Facing Billion Dollar Lawsuit Over Alleged Promotion of FTX
- Bit Boy Crypto is being defended as he warned people about FTX before its collapse
- Influencers are being sued for over a billion dollars in damages for allegedly promoting FTX
- The lawsuit states that the influencers did not do adequate due diligence and were paid for promotion
- Financial Education influencers positioned themselves as experts and this is the basis of the lawsuit
- Non-experts should not be allowed to promote investment products, neither should experts.
Florida Law and Redditors Come Under Fire Over Unregistered Security Sale
- The FTX Earn account was promoted as available to US investors, though this was initially confusing
- Some Redditors and influencers sold an unregistered security, which could be bad for the influencer and investor
- A Florida law is being used to attempt to hold the endorsers responsible for what happened, though a legal expert is skeptical of its chances
- Kevin, one of the influencers, said he lost money and that there should have been more diligence in sponsorships
- All influencers likely profited from the promotion, raising concerns about giving back any money.
Financial Expert Regulations Needed in the Modern Era: Who Really Benefits?
- Financial influencers may have promotional deals that track sales, but when things go wrong they are not responsible
- Individuals must take responsibility for their own decisions, as seen in the Block fight example
- There is a need for new regulations for financial experts given the modern era
- This system primarily benefits influencers and financial companies, not regular people.