Kim Kardashian was charged by the SEC with failing to disclose that she received $250,000 to promote the cryptocurrency EthereumMax on Instagram.
According to SEC Chair Gary Gensler, “this case is a reminder that just because celebrities or influencers recommend investment opportunities, including securities backed by crypto assets, doesn’t mean that those investment products are suitable for all investors.
” We advise investors to take their financial objectives into account when evaluating an investment’s potential risks and opportunities.
According to the SEC, Kardashian broke the federal securities laws’ anti-touting clause. Kardashian accepted the order without contesting or confirming the SEC’s conclusions.
Kardashian consented to refrain from endorsing any cryptocurrency securities for three years. A $1 million fine and the forfeiture of the $250,000 payment she received, plus interest, are both parts of the settlement agreement.
Any celebrity or influencer’s incentives aren’t always aligned with yours, Gensler wrote in a tweet. The investing public, according to him, shouldn’t conflate celebrities’ talents with “the very different talents required to offer appropriate investment advice.”