JAKARTA - Social media influencers involved in cryptocurrency trading and manipulating their prices have received stern warnings from former Securities and Exchange Commission (SEC) official John Reed.
He warned that they would face the same anti-fraud rules as those applicable to stock exchange-listed securities price manipulation. Reed insists that the SEC will not remain silent against influencers who manipulate cryptocurrency prices.
The cryptocurrency industry is still under clear legal conditions, both in the United States and in various countries. This situation provides gaps for influencers to engage in cryptocurrency fraud and price manipulation without clear legal consequences.
Reed gave an example of Ricky Bobby's case, where the SEC has filed charges against Francis Sabo, also known as "Ricky Bobby", in a US$100 million securities fraud scheme (Rp1.4 trillion). Sabo and several other defendants used social media platforms to manipulate stock traded on exchanges.
The SEC claims that Sabo calls himself a trusted stock expert and takes advantage of a large following in the Atlas Trading forum on Discord, an online forum that provides education about trade and securities markets.
In this case, the demands are based on public statements posted on Twitter and private conversations involving members of the group involved. This case should serve as a warning to influencers involved in cryptocurrency trading with the aim of just making a profit, regardless of market integrity and investor interests.
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