The Securities and Exchange Commission has issued a statement warning celebrities that they may be violating the law if they make paid endorsements of cryptocurrencies without disclosing the payments.
Just a few months ago, there would have been no need for such a warning because there were very few celebrities endorsing blockchain products (though Mike Tyson has been endorsing Bitcoin products since at least 2015). But with billions of dollars flooding into initial coin offerings, celebrities like Floyd Mayweather and Paris Hilton have begun promoting new cryptocurrencies on social media.
Readers of Ars will be shocked to learn that these celebrity-endorsed blockchain technologies have not exactly been the cream of the crop. A September investigation by Forbes reported that the Hilton-endorsed currency, called LydianCoin, was founded by a man “being sued by at least four…