According to a media report published on Sunday, the US Securities and Exchange Commission (SEC) has reportedly issued a summons to influencers who were found promoting cryptocurrencies, such as HEX, PulseChain and PulseX.

Over the weekend, Swedish investigator Eric Wall shared an official letter from the SEC dated November 1, addressed to influencers. The letter said that influential people might possess documents and data relevant to an ongoing investigation by SEC staff.

The regulator accompanied the letter with a subpoena that was issued as part of the investigation, requiring the influencers in question to submit the required documents by November 15.

In recent years, the world has seen the rise of crypto influencers – people who use their social media platforms to promote CRYPTOCURRENCIES and blockchain-based projects.

There is no doubt that crypto influencers have the potential to reach a large audience and attract much-needed attention to the industry. However, many have recently been promoting dubious crypto projects and pump-and-dump schemes.

Recently, social media mogul Kim Kardashian was involved in what the class action case deemed a pump-and-dump scheme.

Last month, the SEC charged Kim Kardashian $1.26 million for failing to disclose that she was paid £250,0000 to promote the EthereumMax cryptocurrency on her Instagram page.

SEC Chairman Gary Gensler said the case was a “reminder” that celebrity endorsement doesn’t necessarily make a product worth investing in.

In August, Ben Armstrong, a prominent crypto influencer on his YouTube channel popularly known as BitBoy Crypto, recounted how he became associated with a cryptocurrency project that turned out to be a scam.

The problem is that most influencers are not financial experts and may not fully understand the risks involved in investing in cryptocurrencies. Also, influencers are paid to promote particular projects, which means they may not be impartial.

Working with reputable brands with a good track record and transparency about their fees can help mitigate some of the risks associated with investing in cryptocurrencies.

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