The UAE’s Securities and Commodities Authority (SCA) has formally refuted rumours that the $WAP cryptocurrency, which is supported by American rapper Cardi B and other Hollywood celebrities, may violate securities laws.
Reports about the alleged investigation are followed by clarification.
In response to a question from Khaleej Times on Tuesday, the SCA denied assertions made by a number of websites and social media accounts. According to these sources, in order to start an inquiry into the $WAP token, the SCA wrote to the U.S. Securities and Exchange Commission (SEC).
Cardi B’s social media post sparked widespread speculation.
Following Cardi B’s October 8 posting of a promotional video for the $WAP cryptocurrency on her official X (formerly Twitter) account, numerous blogs and social media outlets reported the purported probe. A wallet address was also included in the article, which sparked rumours that the currency was being investigated for possible securities law violations because of its celebrity sponsorship.
SCA Issues a Firm Denial and Issues a Legal Action Warning
The SCA responded to the rumours with a strong statement, calling them “baseless rumours.” The authority emphasised its ability to take legal action against people who spread misleading information and highlighted that no such communication had been made with the SEC.
Official Notice to Investors The SCA published
By posting a formal investor notice on its website, the SCA further solidified its position. The statement emphasised that no investigation is currently underway: “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.”
SCA Declares the Right to File a Lawsuit
The statement ended by restating the SCA’s authority to prosecute those who disseminate false information: “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.”
The SCA’s explanation serves as a reminder of the legal repercussions of disseminating inaccurate information and emphasises the significance of confirming the authenticity of financial reports before distributing them.
