The influencer is fined $1.26 million for improperly promoting cryptocurrency. She also agrees to a three-year advertising ban.
Kim Kardashian will be fined $1.26 million by the US Securities and Exchange Commission after promoting a cryptocurrency on social media without disclosing the payment she received for the promotion. She has also agreed not to promote cryptocurrencies for the next three years.
The SEC confirmed in a press release Monday that the mega-influencer has agreed to settle the allegations and to cooperate with the ongoing investigation. The US Securities and Exchange Commission had filed charges against Kim Kardashian for failing to tell her millions of social media followers that she received $250,000 for an Instagram post promoting crypto token EthereumMax (EMAX). . In the post, the reality TV star shared a link to the EMAX website, which offers guidance on investing in the tokens.
Celebrities must disclose advertising for investments
“This case reminds us that when a celebrity or influencer endorses investment opportunities, including cryptoassets, that doesn’t mean those investment products are suitable for all investors,” SEC Chairman Gary Gensler said in the statement. “We encourage investors to consider the potential risks and rewards of an investment against their own financial goals.”
Gensler added that the Kardashian case “also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investments in securities.”
A year ago, Charles Randell, head of the British financial regulator FCA, criticized Kim Kardashian for advertising the crypto token Ethereum Max. Numerous influencers were promoting cryptocurrency and tokens with unclear legitimacy, Randall warned. There are now a number of cases where people have been lured into the “crypto bubble” by their favorite influencers and have lost their savings in the process, the FCA boss said at the time.