Financial Protection

SEC charges Kim Kardashian for promoting crypto asset in violation of securities laws

Picture of crypto coins

Picture of crypto coinsPhoto by via Flickr | CC-BY-2.0

The  Securities and Exchange Commission today announced “charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.”

Social media influencers are required by the securities laws to inform investors when they are paid for a promotion. According to the SEC, Kardashian received a $250,000 payment for an Instagram post promoting the asset. Without admitting or denying the SEC’s findings, Kardashian agreed to return (disgorge) the payment, plus interest and pay a $1 million penalty.

Following the 2022 Super Bowl, which was flooded with pro-crypto ads promoted by Hollywood A-list stars, PIRG issued a warning to consumers.

The FTC also enforces rules over celebrity and other social media influencers, including rules on disclosure of how they were compensated for products reviewed or endorsed.


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