As ICOs Get Paris Hilton-Style Celebrity Push, SEC Urges Caution
- SEC urges caution on investing based on celebrity pitches
- Hilton, Floyd Mayweather and rappers among stars backing ICOs
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As the mania over initial coin offerings surges, U.S. regulators are growing concerned that mom-and-pop investors are unwisely jumping in based on celebrity endorsements.
The U.S. Securities and Exchange Commission issued a surprising warning Wednesday, advising that stars often lack sufficient expertise to ensure investments are appropriate. Even worse, pitches could be unlawful if famous backers’ compensation isn’t disclosed, the agency said.