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Grayscale and Celsius charged Crypto advertising: are investors being lied to?

 


Since Monday, January 30, Grayscale has been involved in a legal battle over false advertising. The world's largest Bitcoin fund, GBTC, is being released by the US crypto asset manager. The company dominates this market with a 99.5% market share. Nearly, as Osprey is a rival. He has since brought a lawsuit.


Osprey versus Grayscale.

Osprey claims Grayscale misled clients by exaggerating the likelihood that its fund would be listed as a spot exchange-traded ETF, maintaining Grayscale's market dominance. Grayscale, meanwhile, has long had plans to change its bitcoin trust fund into a spot ETF. The US Securities and Exchange Commission (SEC), though, was the reason why earlier attempts failed.


"Only due to false and misleading advertising and promotions, to date, Grayscale has been able to maintain approximately 99.5 percent market share in a two-player market, despite charging more than four times the wealth management fee that Osprey charges for its services," claims Das company in the lawsuit. Even though the business was aware that the approval would never happen, Grayscale presented the conversion as "a foregone conclusion.".


There seems to be a veritable wave of legal action currently sweeping through the cryptocurrency industry, sometimes coming from within and sometimes coming from without. The parent company of Grayscale, the Digital Currency Group, is also involved in a legal battle with the SEC right now over unregistered securities trading, so that is also the case with them.


Advertising tactics that mislead consumers are not uncommon.

Additionally, the bankrupt cryptocurrency lender Celsius must testify in court regarding its marketing strategies. A report on the company's bankruptcy proceedings was provided to Reuters by a US bankruptcy examiner who is looking into the matter. The business model that the company promoted and sold to customers was not what it actually used, the report claims. According to the document, Celsius and its founder Alex Mashinsky, who is currently being investigated for fraud in the United States, have been in breach of their obligations to fulfill promises made in relation to the in-house token (CEL) and other business-related undertakings.

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