The Legal Diary published a weekly update of current legal news.
Mark Kenkre, Partner and Head of Investment Mis-selling and Fraud, commented on the class-action lawsuit from a group of cryptocurrency investors against Kim Kardashian and Floyd Mayweather:
“Action is needed to prevent endorsements of cryptocurrency quick riches, a delusion that has become increasingly popular for celebrities to promote on social media. These high-profile individuals are idolised by the younger generation who are likely to take their advice as influencers.
The FCA should play a greater role to ensure that the high-risk nature of cryptocurrency is properly communicated to potential investors in such endorsements. This is of particular importance when coins such as EthereumMax rely so heavily on influencer marketing to dupe investors into trusting the financial opportunities.
It is also arguable that these celebrities should be held personally liable to complete adequate due diligence into the products before making any endorsement. This will encourage celebrities to consider the implications of their endorsements and to consult with suitably trained individuals who can highlight the risks involved with the relevant financial products.”
Mark’s comments were published in The Legal Diary, 21 January 2022, and can be found here.