Financial Protection

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

Picture of crypto coins

Picture of crypto coinsPhoto by Quoteinspector.com 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.

 

See the Campaign
Topics
Updates

Show More