The United Arab Emirates’ Securities and Commodities Authority (SCA) has strongly denied rumors of an investigation into the $WAP cryptocurrency, which was reportedly promoted by American rapper Cardi B and other Hollywood celebrities. The speculation, which spread rapidly across social media and various websites, suggested that the token was under scrutiny for potential securities law violations.
The rumors stemmed from a viral video posted on Cardi B’s official X account on October 8, promoting the $WAP token along with a wallet address. Several websites and social media platforms speculated that the SCA had communicated with the U.S. Securities and Exchange Commission (SEC) regarding the cryptocurrency, fueling claims of a potential investigation.
In response to a query from Khaleej Times, the SCA issued a statement on Tuesday categorically refuting these allegations. “The Securities and Commodities Authority (SCA) denies recent reports published on some websites and social media accounts, claiming that the authority sent a letter to its US counterpart, the US Securities and Exchange Commission (SEC), regarding potential securities law violations related to the $WAP cryptocurrency, which is promoted by international celebrities.”
The statement continued, “The SCA clarifies that these reports are baseless rumors and asserts its right to take legal action against those responsible for publishing and spreading the false information.”
The regulatory authority further emphasized that it had not communicated with the SEC on the matter and warned against the circulation of misleading information. The SCA reiterated its stance by publishing an official investor alert on its website, stating that no investigation into $WAP cryptocurrency was underway.
This is not the first time celebrity-endorsed cryptocurrencies have come under the spotlight. In recent years, the rise of digital currencies has attracted the attention of both regulators and investors, particularly as some tokens backed by famous figures have been linked to controversies and legal issues.
The SCA’s firm response to the circulating rumors highlights the regulator’s commitment to safeguarding market integrity and protecting investors from misinformation. The authority’s stance on false reports reflects its broader effort to maintain transparency in the UAE’s financial landscape.
While the rumors surrounding Cardi B’s $WAP token have been debunked, the incident underscores the potential risks associated with celebrity-backed digital assets. Investors are often cautioned to conduct thorough research before investing in cryptocurrencies, especially those promoted through social media by well-known personalities.
With the SCA’s denial of the alleged investigation, the focus now shifts to how the global cryptocurrency community reacts to such incidents of misinformation. For now, Cardi B and her $WAP cryptocurrency remain unscathed by any formal inquiry from UAE authorities, as the SCA continues to monitor developments in the digital asset space.
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