Here are the celebrities who are promoting crypto – even as concerns about scams grow

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The popularity of cryptocurrency has skyrocketed in recent years, and celebrities have taken to the fanfare. But as criminal activity in the space skyrockets, so does the likelihood that influencer mentions could lure investors into costly digital asset scams.

Kim Kardashian, Floyd Mayweather and former NBA star Paul Pierce are among recent celebrities in the hot seat for their crypto promotions, accused in a lawsuit filed earlier this month in California of using their fame to “pump a little-known cryptocurrency called EthereumMax as part of a larger scheme to profit from themselves and defraud investors.

For Mayweather, the lawsuit marks the second time the boxer has faced scrutiny for allegedly making misleading statements regarding crypto. In 2018, the Securities and Exchange Commission charged Mayweather and music producer DJ Khaled with failing to disclose payments they received for promoting investments in initial coin offerings.

Fraudsters have also abused high-profile figures without their knowledge to appease fans, using the faces of famous names such as Prince Harry and Meghan Markle, Bill Gates, Mark Zuckerberg and Sir Richard Branson to promote bogus entertainment programs. approval related to bitcoin (BTC-USD).

This makes celebrity endorsements of cryptocurrencies particularly vulnerable to criticism, as uninformed investors rush to get into speculative products because the stars they look up to are in crypto. This explains why Reese Witherspoon received backlash after a January 11 tweet supporting “avatars, crypto wallets and digital assets,” and why Matt Damons’ crypto ad became a laughingstock online.

In the UK, the British financial watchdog recently outlined plans to restrict the marketing of crypto assets and other high-risk investments amid booming advertisements and celebrity endorsements. Even amid criminal allegations regarding such promotions and increased scrutiny from the public and regulators, the list of popular names endorsing crypto with their millions of audiences keeps growing.

Here are some of the stars (in no particular order) who have lent their names to promote digital assets:

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Gwyneth Paltrow

Oscar-winning actress and Goop founder Gwyneth Paltrow recently gave away a $500,000 bitcoin giveaway to her 2.7 million Twitter followers. The announcement comes after its recent participation in a $200 million debt and equity financing round for crypto-mining firm TeraWulf, which aims to produce bitcoin using 100% zero-carbon energy.

Reese Witherspoon

After making crypto headlines last September when she announced she had purchased Ethereum (ETH-USD), Oscar-winning actress Reese Witherspoon had fans scratching their heads earlier this month- here with a tweet about the digitization of the “near” future.

Paris Hilton

Paris Hilton has repeatedly expressed her enthusiasm for digital assets, including cryptocurrencies and NFTs, even hosting events in the metaverse. She also previously endorsed NFT technology on “The Tonight Show Starring Jimmy Fallon.”

Kim Kardashian

In an Instagram post last summer, Kim Kardashian asked her 250 million followers, “Do you like crypto??” before drawing their attention to a little-known token called EthereumMax. The promotion is now the subject of a lawsuit which alleges the endorsement was a profit-making scheme by Kardashian and other celebrities involved.

Kim Kardashian promoted the Ethereum Max cryptocurrency on her Instagram account in June.

Matt Damon

Matt Damon was the poster child for a global advertising campaign rolled out by Crypto.com, which released the following ad (see below) this month. The ad has come under scrutiny due to concerns that Damon’s missive in the clip encouraged young investors to invest in high-risk crypto assets.

Jamie Foxx

In 2017, actor Jamie Foxx became one of the first famous crypto endorsers when he promoted the token sale of Cobinhood, a free cryptocurrency exchange.

Charli D’Amelio

TikTok star Charli D’Amelio’s family Instagram account posted a photo with a caption thanking cryptocurrency exchange Gemini for its birthday gift of bitcoin in May as part of a partnership with the platform.

mike tyson

Mike Tyson recently announced that he is “all in” on the Solana (SOL-USD) cryptocurrency, asking his 5.7 million Twitter followers in a separate tweet how much they think the price of the crypto will go.

Tom Brady

Tom Brady has been actively promoting crypto on his social media accounts. He and his wife, model Gisele Bündchen, starred in a $20 million ad campaign for crypto exchange FTX.

Floyd Mayweather

Boxing champion Floyd Mayweather has been accused in a lawsuit filed this month in California of using his fame to “sip” a little-known cryptocurrency called EthereumMax as part of a larger profit scheme. In 2018, the Securities and Exchange Commission accused Mayweather of failing to disclose payments he received for promoting investments in initial coin offerings.

matt james

Former “Bachelor” star and entrepreneur Matt James has actively promoted crypto investing and NFTs, but is careful to note that he does not give professional financial advice, he merely educates.

“I never ask people to buy,” he said on Yahoo Finance Live earlier this month. “I give them information about why I do the things I do and why I have strong beliefs, especially from a bitcoin scarcity perspective.

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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