The false reports speculated that the token, endorsed by celebrities, was under scrutiny for securities law violations
Photo: Reuters
The UAE's Securities and Commodities Authority (SCA) has denied rumours circulating about potential securities law violations involving the $WAP cryptocurrency, promoted by Hollywood celebrities, including American rapper Cardi B.
The clarification came on Tuesday in response to a query from Khaleej Times, following reports on multiple websites and social media accounts that claimed the SCA had sent a letter to its US counterpart, the Securities and Exchange Commission (SEC), regarding an investigation into the token.
Scores of websites reported the alleged investigation after a video promoting $WAP was shared on Cardi B’s official X account on October 8, along with a wallet address. These reports speculated that the token, endorsed by celebrities, was under scrutiny for securities law violations.
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In response to the Khaleej Times' inquiry, the SCA issued a statement categorically denying the claims, labelling them as "baseless rumours".
The authority emphasised that it had not communicated with the SEC regarding the $WAP token and warned that it reserves the right to pursue legal action against those responsible for spreading false information. The SCA also published the investor alert on its website, reaffirming that no such investigation is underway.
The full statement, published in an investor alert on the SCA's website, reads: "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 U.S. counterpart, the U.S. Securities and Exchange Commission (SEC), regarding potential securities law violations related to the $WAP cryptocurrency, which is promoted by international celebrities.” The statement continues: “The SCA clarifies that these reports are baseless rumours and asserts its right to take legal action against those responsible for publishing and spreading the false information.”
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Mazhar Farooqui, also known as Maz, is a multiple award-winning investigative journalist and Senior Editor at Khaleej Times. He has dedicated his life to relentlessly digging for the truth, exposing corruption, and uncovering mega scams.