Usually, we’re a Kardashian-free site, but the news that the SEC has fined Kim Kardashian $1.26 million for promoting crypto to her followers without revealing she was paid to do it has ramifications for all celebs who don’t disclose that they are basically promoting paid ADs.
Kim Kardashian had initially posted on her popular Instagram this message:
‘This isn’t financial advice, but sharing what my friends just told me about the Ethereum Max,’ she wrote. After posting that she had a “big announcement,” she added a link redirecting people to the EthereumMax website to purchase EMAX tokens.
SEC securities laws state that celebrities must declare when and how much they are paid to promote crypto. By not declaring they are in violation of securities laws.
While the fine won’t put a dent in the reality star’s fortune (she’s worth over $1B) she is not allowed to promote crypto for three years.
In a statement announcing Kardashian’s fine on Monday, SEC Chair Gary Gensler said: ‘Ms. Kardashian’s 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 investing in securities.’