Feb 03, 2021

SEC Files Charges In Crypto Scam Shilled By Seagal

This one is actually funny. There have been many scammy exchanges or ICOs, but only one had Steven Seagal, cue jokes about all C- or D-rated things. But have other celebrity-endorsed tokens or crypto businesses fared better?

Apparently not really. We have found only one thriving crypto business endorsed by a celebrity - Gwyneth Paltrow, of all people, endorsed the Abra wallets. Other than that celebrity endorsement has been a guarantee for failure. Floyd Mayweather, Paris Hilton, DJ Khaled, John McAfee, Luis Suarez, Lothar Matthäus, Gianluca Zambrotta, Jamie Foxx, The Game, Tommy Haas, T.I. have all lent their names to a failing or flailing ICO or token-based business. For some of them it ended in a fine or prosecution for hiding the fact they were paid for their endorsment.

There is one interesting plot twist though - crypto businesses, which celebrities invested in are often doing quite well. These include e.g. Coinbase or Bitpay.

So if a crypto project you're looking at is backed by a celebrity, it might make sense to check if the endorser is really putting his money where his mouth is.

For more about the Seagal-endorsed scam check out Decrypt.