I was paid $20,000 to promote “MoonCoin.” The founders rug-pulled and stole $10M from investors. Now, the victims are filing a Class Action lawsuit against all the influencers who promoted it, citing the SEC’s crackdown on “touting” securities without disclosure.
Key Takeaways
- The “Financial Products” Exclusion: Almost every standard Media/Creator policy excludes claims arising from the promotion of “Securities, Cryptocurrencies, or Financial Advice.”
- FTC Disclosure: If you didn’t disclose it was an ad, you violated federal law. Insurance does not cover fines for illegal acts.
- Negligence Defense: Your only hope is proving you weren’t “in on it.” You need a defense lawyer.
- Specialty Lines: You need a policy specifically endorsed for “Financial Publishing” or “Influencer Marketing” that removes the crypto exclusion (hard to find in 2026).
The “Why” (The Trap): Regulatory Exclusions
Insurers are terrified of the SEC.
The Clause: “Exclusion – Financial Services.”
“This policy does not apply to claims arising out of the fluctuation in price of any security or value of any asset.”
If you told people to “Buy,” and the price dropped, insurance walks away.
[IMAGE: Screenshot of an SEC complaint naming multiple influencers]
The Investigation: I Called Them
I asked, “I promoted a rug pull. Help.”
1. Hiscox / CNA
- The Verdict: Strict exclusion for investment advice. If the content can be construed as “financial advice,” they deny coverage.
2. Beazley (Media)
- The Verdict: They might cover the defense costs if the claim is about “Negligent Misrepresentation” (you lied about the product) rather than “Financial Advice.” But it’s a thin line.
3. Lawyer
- The Reality: You are likely paying for your own defense. This is the biggest uninsured risk in the creator economy.
Comparison Table
| Activity | Coverage Probability |
| Promoting Shampoo | 100% (Product Liability/Media) |
| Promoting VPN | 90% (Media Liability) |
| Promoting Crypto/Stocks | <10% (Financial Exclusion) |
Step-by-Step Action Plan
- Cooperate with Regulators: If the SEC calls, answer (with a lawyer). Hiding makes you look like a co-conspirator.
- Save the Contracts: Prove you had a contract for “Marketing,” not “Partnership.” Prove you didn’t own equity in the coin.
- Don’t Delete: Preservation of evidence is critical in class actions.
- Vet Future Sponsors: If you touch finance, you are self-insuring. Charge a “Risk Premium” in your rates.
FAQ
Does my LLC protect me?
If you participated in the fraud (even unknowingly), they can sue you personally for “aiding and abetting.”
What if I said ‘Not Financial Advice’?
That disclaimer is legally useless if the content was financial advice.
Can I get insurance for this?
Yes, but it’s expensive “Financial Institution” insurance, not Creator insurance.